The impact of diversity and equality management systems on organisational dynamics: an Exploratory Analysis in small and medium enterprises

The impact of Diversity and Equality Management Systems (DEMS) on organizational dynamics is a hot topic in scholarly debate. Human resource management practices targeted towards diversity and equality, such as recruitment and selection, compensation, training, mentorship, and development, constitute core components of DEMS. This study aims to assess which DEMS practices, if any, are implemented by SMEs to address the specific needs of minority and/or other disadvantaged groups and their effects on individual and collective performances. A tailored survey was administered to a sample of Italian make-to-order production SMEs in the furniture, textile-fashion, and mechanical sectors. The quantitative study examines whether companies implementing traditional High-Performance Work Systems (HPWS) are more sensitive to diversity and equality issues. Subsequently, the investigation focuses on gauging the impact of DEMS on individual and collective performances. Results indicate that DEMS practices are more prevalent in organizations accustomed to implementing advanced HPWS. Additionally, belonging to a formal business group contributes to the successful implementation of DEMS. The study's findings guide human resource managers to view diversity and equality management as an opportunity to enhance organizational well-being and improve group performances.