Pacific B usiness R eview (International)

A Refereed Monthly International Journal of Management Indexed With Web of Science(ESCI)
ISSN: 0974-438X
Impact factor (SJIF):8.603
RNI No.:RAJENG/2016/70346
Postal Reg. No.: RJ/UD/29-136/2017-2019
Editorial Board

Prof. B. P. Sharma
(Principal Editor in Chief)

Prof. Dipin Mathur
(Consultative Editor)

Dr. Khushbu Agarwal
(Editor in Chief)

Editorial Team

A Refereed Monthly International Journal of Management

Diversity and Inclusion in the Workplace: Analyzing the Effects of Inclusive HR Practices on Employee Performance and Organizational Commitment

 

 

Dr Parbin Sultana

Professor,

School of Technology & Management,

University of Science and Technology Meghalaya, India

Corresponding Author

 

Narghis Habiba Laskar

Assistant Professor,

Department of Business Administration,

University of Science and Technology, Meghalaya, India

 

Dr. Sahnaj Rahmatulla Laskar

Head,

Human Resources & Administration,

Braymed Healthcare Private Limited, India

 

Dr. Md. Mazharunnisa

Associate Professor,

KL Business School,

Koneru Lakshmaiah Education Foundation,

Guntur, Andhra Pradesh, India

drmazhar28@gmail.com

orcid id: 0000-0002-3046-9294

 

Dr. Jayanta Bagchi

Associate Professor,

MBA Department,

BBIT (under Makaut University), Kolkata

 

 

Abstract

The Resource-Based View (RBV) of the company and the theoretical framework of Social Identity Theory serve as the foundation for the study of diversity and inclusion in the workplace. According to Social Identity Theory, people get a feeling of self-worth and belonging from belonging to social groups, which emphasizes how crucial inclusion is for promoting successful workplace outcomes. By improving employee engagement, performance, and retention, diverse and inclusive policies can be important organizational assets that give a company a competitive edge, according to the RBV.

Inclusive HR practices have become a trend these days so the major objective of this research was to study the effect of inclusive HR practices on employee performance and organizational commitment. The research was done in the Ahmadabad district of Gujarat state, and by using the purposive sampling method 489 professionals working in various service industries were included in the sample. A well-structured questionnaire was used for the collection of primary data. Results highlighted that the majority of companies have implemented inclusive HR practices. The majority of professionals said that there is a positive and significant impact of inclusive HR practices on employee performance and organizational commitment.

Key Words: Inclusive HR practices, employee performance, organizational commitment

Introduction:

In recent years, Organizations have come to understand the value of diversity and inclusion (D&I) as essential elements of their business plans. Diversity refers to the presence of varied characteristics within a group, such as race, ethnicity, gender, age, sexual orientation, religion, disability status, and socioeconomic background, among others. Inclusion, on the other hand, is about fostering an environment where these diverse individuals can thrive, contribute meaningfully, and feel a sense of belonging. In the context of workplaces, a more formal and practical definition of diversity can be given as the presence of differences among individuals in observable traits such as gender, race, ethnicity, and age, as well as non-observable characteristics like education, cognitive styles, cultural background, and personality. It represents varied perspectives and approaches that members of different identity groups bring to work, influencing interactions and organizational outcomes. While it encompasses legally protected dimensions, diversity also includes broader attributes that shape group dynamics and promote unique contributions within organizations (Roberson, 2006). A diverse workforce can provide a wide range of perspectives, talents, and experiences that support creative problem-solving and decision-making (Joshi, 2024; Cavazos& Nixon, 2024). This includes people of different genders, ages, races, cultural origins, and abilities. All employees will feel appreciated, respected, and empowered to participate to the fullest extent possible if diverse individuals are included in organizational structures, values, and practices. Inclusion is defined as "the degree to which an employee is accepted and treated as an insider by others in a work system" and as "seeking out, valuing and using the knowledge and experiences of diverse employees for business benefit." It emphasizes the importance of recognizing, understanding, and leveraging differences to enable individuals and teams to perform at their full potential (Roberson, 2006).

An inclusive workplace is greatly aided by human resource (HR) strategies. Strategies and regulations that guarantee justice, equity, and assistance for all workers, regardless of their backgrounds, are part of inclusive HR practices (Ezeafulukwe et al., 2024). Fair hiring procedures, mentorship programs, flexible scheduling, objective performance reviews, and extensive staff development initiatives are a few examples of these practices. By incorporating inclusion into HR strategies, companies hope to establish a work environment that draws in, keeps, and develops a diverse staff.

Over the past few decades, the idea of workplace diversity has undergone tremendous change. Prioritizing adherence to equal opportunity laws was the main goal of early diversity initiatives (Portocarrero & Carter, 2022). Nowadays, the emphasis is on recognizing diversity as a source of competitive advantage (Urbancová et al., 2020). Research indicates that diverse teams are more likely to be creative, have greater problem-solving skills, and make better decisions, all of which can boost organizational performance (Kurtzberg, 2005).

But diversity is insufficient on its own. Creating an atmosphere where all workers are respected, valued, and able to engage completely is known as inclusion, and it has become clear that this is essential to maximizing the advantages of diversity. Without inclusion, different teams could struggle with cooperation, communication, and handling conflict, which could negate diversity's potential advantages. By creating an atmosphere of trust, respect, and opportunity for every employee, inclusive HR practices aim to reduce these difficulties. Numerous studies have examined the effects of inclusive HR practices on worker performance and organizational commitment. According to research, inclusive practices increase employee engagement, job satisfaction, and turnover rates—all of which translate into improved performance. A strong sense of organizational commitment, which has been connected to improved morale, productivity, and overall organizational performance, is also more likely to develop in workers who believe their workplace is inclusive.

Despite the growing body of research, there remains a gap in understanding the specific mechanisms through which inclusive HR practices influence employee performance and organizational commitment, particularly in different industries and cultural contexts. This study aims to fill this gap by providing a detailed analysis of how inclusive HR practices affect these key organizational outcomes, offering insights that can guide the development of more effective D&I strategies in the workplace.

This study seeks to explore the relationship between inclusive HR practices and key organizational outcomes such as employee performance and organizational commitment. Understanding how D&I practices influence these factors is essential for companies striving to build workplaces where both individuals and the organization as a whole can thrive.

Review of Literature

This review of literature explores the evolving understanding of diversity and inclusion (D&I) in the workplace, the importance of inclusive human resource (HR) practices, and their impact on key organizational outcomes like employee performance and organizational commitment.

Diversity in the workplace refers to the presence of differences among employees based on various demographic factors such as race, gender, age, sexual orientation, physical ability, and cultural background(Roberson, 2019). On the other hand, inclusion emphasizes the behaviors and practices that ensure all employees feel valued, respected, and able to contribute to the organization. (Martin, 2014)While diversity is a representation of differences, inclusion is the practice of leveraging those differences effectively.

Early literature on workplace diversity focused primarily on the legal and compliance aspects, where organizations implemented diversity policies to meet regulatory requirements. However, more recent studies have recognized diversity as a key driver of organizational success, particularly in terms of innovation, creativity, and problem-solving (Morgan &Várdy, 2009). Researchers have found that diverse teams are more likely to offer innovative solutions, which can enhance organizational performance and lead to competitive advantages (Altunbas et al., 2022).

Inclusivity, however, is recognized as the key enabler that helps organizations realize the potential benefits of diversity. When employees feel included, they are more likely to be engaged, contribute meaningfully, and remain committed to the organization (Jha, Pal & Sarkar, 2024). Inclusion involves not only integrating employees into the organization but also empowering them with opportunities for growth and development.

 

Human Resource (HR) practices are integral in fostering an inclusive workplace. Inclusive HR practices refer to policies and strategies that ensure fairness, equity, and respect for all employees.(Tzovara et al., 2021) These practices can influence recruitment, training, compensation, promotions, performance management, and organizational culture.

Inclusive recruitment practices are designed to attract a diverse talent pool. Studies suggest that organizations that actively seek to reduce biases in hiring processes—by using structured interviews, blind recruitment, and promoting diversity in job advertisements—are more likely to have a diverse workforce (Rezai et al., 2020). A study by Dobusch(2021) indicated that diversity-focused recruitment strategies positively impacted team innovation and performance.

Inclusive training programs are another critical aspect of HR practices. These initiatives emphasize developing inclusive leadership, increasing cultural competency, and bringing attention to unconscious bias. According to Goryunova, Schwartz &Turesky (2022), diversity training programs are effective in increasing employees' understanding of diversity issues and in improving overall organizational outcomes, such as job satisfaction and performance. Furthermore, providing equal opportunities for professional development can reduce turnover and increase employee morale (Khan, Grabarski, Ali & Buckmaster, 2023).

Inclusive performance management systems emphasize fairness and transparency. This involves ensuring that performance evaluations are free from bias and based on objective criteria. Research has shown that employees who perceive their performance evaluations as fair are more likely to be motivated, satisfied with their jobs, and committed to the organization (Bannay, Hadi & Amanah, 2020). Additionally, inclusive feedback processes ensure that employees from diverse backgrounds feel their contributions are recognized and valued.

Fair compensation and benefits policies are also integral to creating an inclusive environment. Studies have shown that organizations that ensure equitable pay and benefits for all employees—regardless of gender, race, or background—tend to have higher employee satisfaction and retention rates (Candeias et al., 2021). Equity in compensation is particularly important in addressing historical inequalities within organizations.The relationship between inclusive HR practices and organizational outcomes like employee performance and organizational commitment has been widely studied. There is significant evidence suggesting that inclusive HR practices positively impact both of these outcomes.

By creating an atmosphere where workers feel appreciated, respected, and inspired, inclusive HR policies improve worker performance. Workers who believe their company is inclusive are more likely to perform well, especially in teams, as they are more inclined to communicate, exchange ideas, and produce high-quality work, according to a study by Zhu et al. (2022). Stress and conflict are lessened in inclusive settings, which boosts creativity and productivity.

Moreover, when HR practices are seen as inclusive, employees experience greater job satisfaction and commitment to their roles, which in turn enhances their overall performance. Inclusive HR practices ensure that all employees have equal access to the resources, opportunities, and recognition needed for performance enhancement (Prayson& Rowe, 2019).

Organizational commitment refers to the psychological attachment that employees feel toward their organization. Inclusive HR practices are linked to higher levels of organizational commitment because employees feel a sense of belonging and fairness in an inclusive environment (Mennicke& Cutler-Seeber, 2016). Employees who perceive that their organization supports diversity and inclusion are more likely to stay with the organization and work toward its success. In a study by Prayson& Rowe (2019), it was found that inclusion fosters organizational commitment by promoting positive employee attitudes and behaviors.

Despite the clear benefits of diversity and inclusion, implementing inclusive HR practices can present challenges. One key challenge is overcoming unconscious bias in recruitment, performance evaluations, and promotions. Bias can limit the effectiveness of D&I programs and hinder the full participation of employees from diverse backgrounds (Joy, 2016). Additionally, there is often resistance to change within organizations, particularly when inclusion efforts challenge deeply ingrained organizational norms and values.

Another challenge is ensuring that inclusion is not limited to formal policies but is embedded in the everyday practices and culture of the organization. This requires continuous commitment from leadership and HR professionals to reinforce the importance of inclusion at all levels (Shore et al., 2018).

In conclusion, the literature highlights the critical role of inclusive HR practices in shaping organizational outcomes such as employee performance and organizational commitment. The growing body of research suggests that organizations that adopt inclusive HR practices tend to see higher levels of innovation, job satisfaction, and employee retention. However, the effectiveness of these practices depends on their integration into the organizational culture and their ability to address challenges such as unconscious bias and resistance to change. This review sets the stage for further research that will explore the specific mechanisms through which inclusive HR practices affect these outcomes, contributing to the broader understanding of diversity and inclusion in the workplace.

Research Gap

Despite a growing body of research on diversity and inclusion (D&I) in the workplace, significant gaps remain in understanding the specific mechanisms through which inclusive HR practices influence key organizational outcomes like employee performance and organizational commitment. While existing studies have shown correlations between inclusive HR practices and improved performance, the precise pathways—such as how inclusion directly impacts motivation, productivity, or collaboration—are often underexplored. Additionally, much of the research has been conducted in Western, particularly U.S.-centric, contexts, with limited attention paid to how industry-specific factors or cultural differences shape the effectiveness of inclusive HR practices in diverse global environments.

Furthermore, most studies on D&I focus on short-term outcomes or rely on cross-sectional data, neglecting the long-term effects of inclusive HR practices. Longitudinal studies are needed to examine whether the positive impacts on employee performance and commitment are sustained over time. Additionally, the intersectionality of diverse identities, such as race, gender, and disability, is rarely considered in these studies, leaving a gap in understanding how overlapping identities influence the outcomes of inclusive HR practices. Exploring these gaps can offer more nuanced insights into how organizations can strategically design and implement inclusive practices that enhance employee engagement, well-being, and long-term organizational success.

Objectives

  1. To discuss the inclusive HR practices used by sample companies
  2. To check the effect of HR-inclusive practices on employee performance
  3. To check the effect of HR-inclusive practices on organizational commitment

Hypotheses

  1. There is no significant effect of HR-inclusive practices on employee performance.
  2. There is no significant effect of HR-inclusive practices on organizational commitment.
  3. There is no significant difference in respondents’ opinions about the effect of HR-inclusive practices on employee performance concerning their demographic variables
  4. There is no significant difference in respondents’ opinions about the effect of HR-inclusive practices on organizational commitment concerning their demographic variables

Research Methodology

The first phase of the research focused on the inclusive HR practices adopted by the selected companies. It further analyzed the impact of these practices on employee performance and organizational commitment. A combination of descriptive and causal research designs was utilized for this study. The research was conducted in the Ahmedabad district, encompassing all employees working in the service industries within this region. From this population, a purposive sampling method was used to include 489 professionals in the sample. To gather primary data, a well-structured survey was administered using Google Docs. The survey was divided into five sections: (a) demographic profile, (b) job profile, (c) inclusive HR practices, (d) the effect of inclusive HR practices on employee performance, and (e) the effect of inclusive HR practices on organizational commitment. The data collected from the 489 professionals was analyzed using SPSS software, employing statistical methods such as mean, t-tests, and chi-square tests.

Results

The first section of the survey collected information about professionals’ demographics as shown in Table 1. Out of the total 489 professionals, 52.15% were females and rest 47.85% were males. It was observed that the majority of respondents (42.13%) were in the age group of 40 to 55 years followed by 25 to 40 years (40.49%). Less than 10% of the respondents were found in the age categories of up to 25 years (9.61%) and above 55 years (7.77%).The maximum number of professionals were postgraduate (58.69%) followed by graduate (21.27%) and professional degree holders (20.04%).

Table 1: Demographic Profile of Professionals

Gender

N

Percentage

Male

234

47.85

Female

255

52.15

Total

489

100

Age

N

Percentage

Up to 25 Years

47

9.61

25 to 40 Years

198

40.49

40 to 55 years

206

42.13

Above 55 Years

38

7.77

Total

489

100

Qualification

N

Percentage

Graduate

104

21.27

Post Graduate

287

58.69

Professional Degree

98

20.04

Total

489

100

 

As depicted in Table 2 total of 4 service industries were included in the sample. In the sample majority of professionals were taken by the education sector (38.45%) followed by the insurance sector (22.29%), banking sector (21.47%) and healthcare sector (17.79%).

When questioned about their work experience, the majority of respondents (36.61%) indicated that they had worked for five to ten years, followed by those who had worked for more than ten years (27.40%). More than 1/4th of the professionals (25.36%) had a job experience of 1 to 5 years and the remaining respondents (10.63%) had a job experience of less than 1 year. As per data shown in Table 2 maximum number or respondents (48.26%) were working at middle-level management posts followed by senior management posts (27.40%), entry level posts (12.68%) and executive/top management posts(11.66%).

Table 2: Job Profile of Professionals

Service Industry

N

Percentage

Banking

105

21.47

Healthcare

87

17.79

Insurance

109

22.29

Education

188

38.45

Total

489

100

Job Experience

N

Percentage

Less than 1 Year

52

10.63

1 to 5 Years

124

25.36

5 to 10 Years

179

36.61

More than 10 Years

134

27.40

Total

489

100

Position / Role

N

Percentage

Entry Level

62

12.68

Mid-Level

236

48.26

Senior Management

134

27.40

Executive/Top Management

57

11.66

Total

489

100

 

Inclusive HR Practices adopted by Sample Companies

Professionals were asked to indicate the inclusive HR practices adopted by their companies and the results are shown in Table 3. Respondents highlighted that their organization has a clear diversity and inclusion policy (mean=3.79), which not only provides equal opportunities for career growth and development for all employees, regardless of their background (mean=3.54) but it also supports work-life balance for employees of all backgrounds and identities (mean=3.66). Professionals strongly indicated that inclusive HR practices like diversity training, support networks, and inclusive leadership are regularly implemented in the organization (mean=4.28) and inclusive leadership is promoted within the organization, with leaders demonstrating a commitment to diversity and inclusion (mean=3.84).

Table 3: Inclusive HR Practices Adopted by Sample Companies

Inclusive HR Practices

Mean

S.D.

C.V.

Level of Agreement

My organization has a clear diversity and inclusion policy

3.79

1.29

0.34

Agree

HR practices in my organization encourage diversity in recruitment and hiring

3.28

1.02

0.31

Neutral

The organization provides equal opportunities for career growth and development for all employees, regardless of their background

3.54

1.38

0.39

Agree

Inclusive HR practices (e.g., diversity training, support networks, inclusive leadership) are regularly implemented in the organization

4.28

0.98

0.23

Strongly Agree

The organization supports work-life balance for employees of all backgrounds and identities

3.66

1.03

0.28

Agree

There is a zero-tolerance policy for discrimination and harassment in the workplace

3.31

0.87

0.26

Neutral

Inclusive leadership is promoted within the organization, with leaders demonstrating commitment to diversity and inclusion

3.84

0.99

0.26

Agree

 

Table 4 shows the overall level of inclusive HR practices adopted in the sample companies. According to the majority of respondents (83.84%) a good level of inclusive HR practices are implemented in their companies whereas 16.16% of respondents said that the adoption level of inclusive HR practices is not good in their organizations.

Table 4: Overall level of Inclusive HR Practices adopted by Sample Companies

Overall level of Inclusive HR Practices

N

Percentage

Bad

79

16.16

Good

410

83.84

Total

489

100

 

 

Impact of inclusive HR practices on Employee Performance

The respondents were given a series of statements and asked to indicate whether they agreed with them, as indicated in table 5, as one of the main goals of this study was to examine the effect of inclusive HR practices on employee performance. Respondents strongly felt that their unique background and skills are valued by the organization, which motivates them to perform better (mean=4.21) and their job performance is enhanced by the organization’s commitment to providing resources and support for all employees, regardless of their identity (mean=3.74) as well as diversity of perspectives in the workplace enhances their creativity and problem-solving skills (mean=3.69).

Professionals highlighted that inclusive hiring practices ensure that they work alongside colleagues with diverse talents and experiences, which improves team performance (mean=3.66) as well as inclusive HR policies, such as flexible work arrangements, enable them to maintain a healthy work-life balance, which positively impacts their job performance (mean=3.58). Further respondents said that organization’s leadership values diversity and this encourages them to perform at my best (mean=3.51), organization’s commitment to inclusivity makes them more engaged and productive in their work (mean=3.48), inclusive HR practices have contributed to reducing workplace stress, enabling me to perform more efficiently (mean=3.45) and inclusive HR practices have helped them feel more confident in their ability to perform well at work (mean=3.42).

 

Table 5: Impact of inclusive HR practices on Employee Performance

Statements

Mean

S.D.

C.V.

Level of Agreement

Inclusive HR practices have helped me feel more confident in my ability to perform well at work.

3.42

1.01

0.30

Agree

The diversity of perspectives in the workplace enhances my creativity and problem-solving skills.

3.69

1.18

0.32

Agree

I feel that my unique background and skills are valued by the organization, which motivates me to perform better.

4.21

0.94

0.22

Strongly Agree

Inclusive hiring practices ensure that I work alongside colleagues with diverse talents and experiences, which improves team performance.

3.66

0.87

0.24

Agree

The organization’s commitment to inclusivity makes me more engaged and productive in my work.

3.48

1.03

0.30

Agree

I receive equal opportunities for career development and performance advancement, regardless of my background.

3.24

0.67

0.21

Neutral

Inclusive HR policies, such as flexible work arrangements, enable me to maintain a healthy work-life balance, which positively impacts my job performance.

3.58

1.15

0.32

Agree

I feel that the organization’s leadership values diversity and this encourages me to perform at my best.

3.51

1.19

0.34

Agree

My job performance is enhanced by the organization’s commitment to providing resources and support for all employees, regardless of their identity.

3.74

1.25

0.33

Agree

Inclusive HR practices, such as mentorship or employee resource groups, have helped me improve my job performance

3.29

0.89

0.27

Neutral

Inclusive HR practices have contributed to reducing workplace stress, enabling me to perform more efficiently

3.45

0.74

0.21

Agree

 

Table 6 is showing the overall impact of inclusive HR practices on employee performance. More than 3/4th of the professionals (78.53%) said that there is a positive impact of inclusive HR practices on employee performance while 21.47% respondents said that inclusive HR practices negatively impact employee performance.

Table 6: Overall Impact of inclusive HR practices on Employee Performance

Overall Impact

N

Percentage

Negative

105

21.47

Positive

384

78.53

Total

489

100

 

To measure the significance of results shown in table 6 following hypothesis has been taken:-

H01:There is no significant effect of HR inclusive practices on employee performance

Ha1: There is a significant effect of HR inclusive practices on employee performance

To test this hypothesis one sample t-test has been applied against theoretical mean 33 as shown in table 7. The calculated value of mean (39.27) is higher that the theoretical mean (33) and the value of t-statistic is significant at 5% level of significance so it can be concluded that there is a significant effect of HR inclusive practices on employee performance.

 

Table 7: One Sample t-test to measure significance of Impact of inclusive HR practices on Employee Performance

Variable

Test Value = 33

t- value

p-Value

Result

Mean

S.D.

Overall Impact

39.27

4.89

28.35

0.000

Significant

Level of Significance=5%

Further to check difference in respondents’ opinion with respect to their demographic profile following hypothesis has been taken:-

H02:There is no significant difference in respondents’ opinion about effect of HR inclusive practices on employee performance with respect to their demographic variables

Ha2: There is a significant difference in respondents’ opinion about effect of HR inclusive practices on employee performance with respect to their demographic variables

To measure the impact of demographic variables on respondents’ opinion chi-square test was applied as shown in table 8. For all the three demographic variables the value of chi-statistic is not significant so it can be concluded that there is no significant difference in respondents’ opinion about effect of HR inclusive practices on employee performance with respect to their demographic variables.

Table 8: Chi Square test result to measure difference in respondents’ opinion about effect of HR inclusive practices on employee performance

Gender

Overall Impact

Chi - Statistic

p-value

Result

Negative

Positive

Total

Male

42

192

234

3.3043

0.069

Not Significant

Female

63

192

255

Total

105

384

489

Age

Overall Impact

Chi - Statistic

p-value

Result

Negative

Positive

Total

Up to 25 Years

12

35

47

5.33

0.148

Not Significant

25 to 40 Years

41

157

198

40 to 55 years

49

157

206

Above 55 Years

3

35

38

Total

105

384

489

Qualification

Overall Impact

Chi - Statistic

p-value

Result

Negative

Positive

Total

Graduate

28

76

104

2.34

0.310

Not Significant

Post Graduate

57

230

287

Professional Degree

20

78

98

Total

105

384

489

Level of Significance=5%

 

Impact of inclusive HR practices on Organizational Commitment

Table 5 shows the respondents’ agreement with the statements related to the impact of inclusive HR practices on organizational commitment. Professionals strongly admitted that they are more likely to go above and beyond in their role because the organization supports an inclusive and diverse work culture (mean=4.25) which has also increased their loyalty to the organization (mean=3.98). Respondents said that inclusive HR practices have created a work environment where they feel respected and supported (mean=4.02), inclusive HR practices have made them feel valued and appreciated, which strengthens their commitment to the organization (mean=3.88) and they are more likely to stay with this organization because of its inclusive policies and practices (mean=3.84).

Further respondents said that the organization’s efforts to promote diversity and inclusion make them more proud to work here (mean=3.69). At last, respondents said that the organization treats all employees equally, which enhances their emotional commitment to the company (mean=3.49) as well as they are motivated to contribute to the success of the organization because of its inclusive culture and policies (mean=3.49).

Table 9: Impact of inclusive HR practices on Organizational Commitment

Statements

Mean

S.D.

C.V.

Level of Agreement

Inclusive HR practices have increased my loyalty to the organization.

3.98

0.98

0.25

Agree

I feel a strong sense of belonging to the organization due to its inclusive culture.

3.59

0.85

0.24

Agree

The organization’s commitment to diversity and inclusion makes me more committed to its long-term success.

3.65

0.98

0.27

Agree

I am more likely to stay with this organization because of its inclusive policies and practices.

3.84

1.25

0.33

Agree

The organization’s inclusive approach to leadership has increased my trust in its values and mission.

3.29

1.05

0.32

Neutral

Inclusive HR practices have made me feel valued and appreciated, which strengthens my commitment to the organization.

3.88

1.15

0.30

Agree

I believe the organization is genuinely invested in the growth and development of all employees, which makes me more committed to staying with it.

3.35

1.21

0.36

Neutral

I feel that the organization treats all employees equally, which enhances my emotional commitment to the company.

3.49

1.07

0.31

Agree

The organization’s efforts to promote diversity and inclusion make me more proud to work here.

3.69

0.98

0.27

Agree

I am motivated to contribute to the success of the organization because of its inclusive culture and policies.

3.49

0.79

0.23

Agree

Inclusive HR practices have created a work environment where I feel respected and supported, which increases my commitment to the organization.

4.02

1.05

0.26

Agree

I am more likely to go above and beyond in my role because the organization supports an inclusive and diverse work culture.

4.25

1.21

0.28

Strongly Agree

The inclusive HR policies make me feel that my personal values align with the organization’s goals, strengthening my commitment.

3.87

1.15

0.30

Agree

 

The maximum  number of respondents (86.09%) said that inclusive HR practices have a positive impact on organizational commitment whereas 13.91% of respondents indicated the negative impact of inclusive HR practices on organizational commitment.

Table 10: Overall Impact of inclusive HR practices on Organizational Commitment

Overall Impact

N

Percentage

Negative

68

13.91

Positive

421

86.09

Total

489

100

 

To measure the significance of impact following hypothesis has been taken:-

H03:There is no significant effect of HR inclusive practices on organizational commitment

Ha3: There is a significant effect of HR inclusive practices on organizational commitment

Table 11 shows the results of one sample t-test applied to test the hypothesis. At a 5% level of significance, the value of the t-statistic is significant and the theoretical mean (39) is lesser than the calculated mean (48.38) so it can be concluded that there is a significant effect of HR inclusive practices on organizational commitment

Table 11: One-Sample t-test to measure the significance of the Impact of inclusive HR practices on Organizational Commitment

Variable

Test Value = 39

t- value

p-Value

Result

Mean

S.D.

Overall Impact

48.38

3.78

54.87

0.000

Significant

Level of Significance=5%

Further to check difference in respondents’ opinion with respect to their demographic profile following hypothesis has been taken:-

H04:There is no significant difference in respondents’ opinion about effect of HR inclusive practices on organizational commitment with respect to their demographic variables

Ha4: There is a significant difference in respondents’ opinion about effect of HR inclusive practices on organizational commitment with respect to their demographic variables

To measure the impact of demographic variables on respondents’ opinion chi-square test was applied as shown in table 12. The value of chi-statistic is found significant for gender and age but not found significant for qualification so it can be concluded that there is a significant difference in respondents’ opinion about effect of HR inclusive practices on organizational commitment with respect to their gender and age.

Table 12: Chi Square test result to measure difference in respondents’ opinion about effect of HR inclusive practices on organizational commitment

 

Gender

Overall Impact

Chi - Statistic

p-value

Result

Negative

Positive

Total

Male

25

209

234

3.891

0.048

Significant

Female

43

212

255

Total

68

421

489

Age

Overall Impact

Chi - Statistic

p-value

Result

Negative

Positive

Total

Up to 25 Years

12

35

47

18.83

0.000

Significant

25 to 40 Years

19

179

198

40 to 55 years

25

181

206

Above 55 Years

12

26

38

Total

68

421

489

Qualification

Overall Impact

Chi - Statistic

p-value

Result

Negative

Positive

Total

Graduate

22

82

104

5.853

0.053

Not Significant

Post Graduate

35

252

287

Professional Degree

11

87

98

Total

68

421

489

Level of Significance=5%

 

Discussion

The results highlighted that majority of companies have implemented inclusive HR practices. Organizations have clear diversity and inclusion policy which not only provide equal opportunities for career growth and development for all employees, regardless of their background but it also supports work-life balance for employees of all backgrounds and identities. Respondents strongly felt that their unique background and skills are valued by the organization, which motivates them to perform better and their job performance is enhanced by the organization’s commitment to providing resources and support for all employees, regardless of their identity as well as diversity of perspectives in the workplace enhances their creativity and problem-solving skills.Overall78.53% said that there is a positive impact of inclusive HR practices on employee performance. Maximum number of respondents (86.09%) said that inclusive HR practices have a positive impact on organizational commitment. Professionals strongly admitted that they are more likely to go above and beyond in their role because the organization supports an inclusive and diverse work culture which has also increased their loyalty to the organization.

The findings from the study highlight several key insights that align with and extend existing literature on the impact of inclusive HR practices on employee performance and organizational commitment. First, the results reveal that the majority of companies have implemented inclusive HR practices, with a clear diversity and inclusion (D&I) policy in place. These policies not only provide equal opportunities for career growth and development but also support work-life balance for employees across different backgrounds and identities. This finding is consistent with previous research which suggests that organizations with inclusive practices foster an environment where employees feel valued and supported, leading to higher levels of job satisfaction and engagement (Shore et al., 2018). The emphasis on work-life balance further aligns with studies by Joy (2016), which show that such initiatives contribute to enhanced employee well-being and retention, particularly for diverse groups.

The second finding, that employees feel their unique backgrounds and skills are valued by the organization, also echoes prior research on the positive relationship between inclusive environments and employee performance. Respondents in this study indicated that their job performance is improved due to the organization’s commitment to providing resources and support, regardless of identity. This reflects the tenets of Social Identity Theory, which posits that when individuals feel included and respected, they are more motivated and engaged in their work (Mennicke& Cutler-Seeber, 2016). Additionally, the finding that diversity of perspectives enhances creativity and problem-solving is consistent with research by Prayson& Rowe (2019), which emphasizes that diverse teams bring varied perspectives that lead to innovative solutions and improved organizational outcomes. The result that 78.53% of respondents believe inclusive HR practices positively impact performance further supports the body of literature linking inclusion with enhanced employee outcomes (Roberson, 2019).

Lastly, the finding that 86.09% of respondents feel that inclusive HR practices positively influence organizational commitment highlights the importance of inclusivity in fostering loyalty and discretionary effort. This is in line with the research by Martin (2014), which indicates that employees who perceive their organization as inclusive are more likely to be committed and go above and beyond in their roles. The findings suggest that inclusive HR practices enhance organizational commitment by creating an environment where employees feel a deep sense of belonging, leading to greater job satisfaction and long-term loyalty.

Conclusion:

In conclusion, this study reaffirms the positive impact of inclusive HR practices on key organizational outcomes, specifically employee performance and organizational commitment. According to the results, companies with clear diversity and inclusion policies not only promote equitable chances for professional growth and work-life balance, but also establish a work atmosphere where staff members, irrespective of their identity or background, feel appreciated and encouraged. This inclusive atmosphere contributes to enhanced employee motivation, performance, and creativity, which is consistent with previous research that highlights the relationship between inclusion and improved organizational outcomes.

Furthermore, the study reveals that employees who perceive their workplace as inclusive are more likely to exhibit higher levels of organizational commitment. The strong sense of belonging and support provided by inclusive HR practices increases loyalty and encourages employees to go above and beyond in their roles. These findings align with established theories such as Social Identity Theory and the Resource-Based View, which emphasize the importance of inclusion in fostering engagement and leveraging diverse perspectives for organizational success. Overall, the results underscore the critical role of inclusive HR practices in driving both individual performance and long-term organizational commitment, highlighting the need for organizations to prioritize D&I initiatives to remain competitive and sustainable in an increasingly diverse workforce.

 

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