Diversity focused HR practices and perceived firm performance: mediating role of procedural justice

Purpose The purpose of this paper is to investigate the relationship between diversity management (i.e. diversity-focused human resource (HR) practices related to recruitment and selection, training and development, performance appraisal and compensation) and perceived firm performance, and the mediating effect of procedural justice. Design/methodology/approach Primary data based on 400 respondents of 162 organizations operating in India were analysed using statistical tools such as factor analysis, analysis of variance (ANOVA) and multiple regression analysis. Findings Multiple regression analysis indicated that diversity-focused HR practices had a positive association with perceived firm performance. Further, it was found that procedural justice played a partially mediating in the relationship between diversity-focused HR practices and perceived firm performance. Originality/value This study sheds new light on the effects of diversity-focused HR practices on firm performance (perceived) in Indian context.