Diversity and Equality Management Systems in Italian Make-to-Order Production SMEs

The impact of diversity and equality management system (DEMS) in organizations is a hotly debated topic. Diversity training and mentorship programs and equality practices related to recruitment, pay, and promotion across minority or other disadvantaged groups are typically belonged to DEMS. This study seeks to assess which DEM practices, if any, are implemented by SMEs and their effects on individual and group performances. A comprehensive questionnaire was submitted to a sample of Italian make-to-order production SMEs belonging to furniture, textile-fashion and mechanical sector. The quantitative study examines whether companies which have been already implementing traditional high-performance work systems (HPWS) are more sensitive to diversity issues, and then focuses on the impact of DEMS on individual and team performance. Results show that DEMS practices are more implemented in organizations that are more advanced in HPWS, they also indicate that belonging to a formal business group is a powerful enabler for a successful implementation of DEMS. Finally, while at individual level performances DEMS practices only have a strong impact on satisfaction and turnover, at group level they also have a decisive impact on conflict reduction, cohesion, and creativity. The findings should guide human resource managers to look at diversity and equality management as an opportunity to increase organizational well being and boost group performances.