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Diversity and Its Effect on Firm Performance: A Critical Review

Journal of Strategic Human Resource Management

Volume 1 Issue 1

Published: 2012
Author(s) Name: Swati Chaurasia, Archana Shukla
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Abstract

This article seeks to review the literature on ‘diversity and its effect on firm performance’. Based on the extant literature of diversity, we present a framework which analyzes the effect of diversity in attributes, values, skills and knowledge and cohort membership on firm performance through group processes and its consequences. The consequences of Group processes involve decision quality, decision commitment, strategic consensus and knowledge management. We measure firm performance by financial, customer, internal processes and growth perspective. Keywords: Diversity in attributes, values, skills, knowledge and cohort membership, decision quality, decision commitment, strategic consensus and knowledge management, Firm performance.

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