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Integrated Analysis of Effective Leadership and Diversity

Management as a Strategic “Brainbox” of Organizational Growth
and Success
Olawande Olayinka Jaiyeola
Westcliff University Irvine, California. United States
Email: [email protected]

Abimbola Andrew Jaiyeola

Northumbria University, New Castle. United Kingdom
E mail: [email protected]

Mmenyene Aloysius Akpanobong

Msc. Finance
Email: [email protected]

Abstract
Globalization has introduced so many factors into the business world which have unarguably changed the ways
businesses are conducted. One of such plethora of factors is the varying circumstances that becloud the existence
of people in areas of differences and similarities anchored on several elements such as gender, race, religion,
ethnicity, physical abilities, and disabilities, colour, age, family status, language, generation etcetera. These
differences have become issues of identities that are highly cherished and recognized by society and the people
within them. It is certainly an unavoidable responsibility of the organization to ensure that these differences and
similarities are effectively managed through the tool of diversity management to ensure that people or employees
feel belonged irrespective of the characteristics that define their personality. By so doing, an organization is not
only creating a level playing field of equality but also strengthening the path of success and growth it aspires to
attain. In other words, it is very expedient for organizations to ensure that the differences that exist within the
organizations are well managed to pave the way for inclusivity to receive the accrued benefits. It is
understandably factual that diversity management is a form of strategic brainbox that organizations can leverage
to introduce and actualize the goals and objectives they have set out to achieve. In other words, diversity
management presents organizations the ample opportunity to retain customers, suppliers, and even employees
who belonged to the activities of the organizations and this of course goes a long way in adding value to the
growth and success drives of the organizations that adopt and practice this concept effectively and efficiently in a
transparent and open manner.
Keywords: Brainbox Strategic, Diversity Management, and Strategic Success Organizational
DOI: 10.7176/RHSS/13-12-05
Publication date:June 30th 2023

Introduction
The continuous expansion of the world in terms of population and the accompanying changes that have greeted
the global space which of course have made the world a global village are issues that need attention and interest
on how the differences among people are well managed for optimum results not just to the society but to all the
different components including the organizations. The view of Kaur and Arora corroborated the globalization of
society wherein they stated that the entire world in its present state is assuming a global village and the cross-
border distances keep reducing in a very quick manner with a high level of interconnectedness across all the
components of the world, the business components inclusive (Kaur & Arora, 2020). In view of ensuring the
maintenance of interconnectedness among people which has been deeply introduced by the globalized world,
there becomes the need for means to be devised to actualize this goal. It is a sacrosanct fact that there are so
many ways that have been devised to ensure that this interconnectedness of a thing gains massive support;
however, one of such indisputable and effective ways to ensure efficient management of interconnectedness is
the adoption of diversity management which has attracted so many interests from scholars. The essence of
diversity management becomes necessary going by the numerous features that characterize the individuals’
differences as rightly buttressed by the submission of Itam and Bagali that diversity entails all characteristics of
the individuals or groups which include the likes of a religion, gender, race, national origin, affectional
orientation, personality, age, language, education, lifestyle, marital status, beliefs, geographical origin, tenure
with the organization, the job and the economic status (Itam & Bagali, 2018). Several other scholars have tried to
establish what constitutes diversity. Some strongly believed that age, disability, family status, ethnicity, sex,

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gender identity or expression, generation, language, neurodiversity, life experiences, sexual orientation, religion,
belief and spirituality, race or colour, physical characteristics, and veteran status (Ganeshan & Vethirajan, 2022).
All these characteristics requires the right environment for them to serve as strengths and the best way these
could be harnessed to fetch the optimum result is through adequate management, hence, the concept of diversity
management. Diversity management is considered a very critical aspect of managing people and their features as
it has its sole focus on human and cultural diversity in organizations which are expected to be of huge benefit to
every party involved (Vielfalt, 2014). It is considered a managerial approach that stresses variety in the
workplace as one of the very key indicators of tilting toward efficiency in terms of work (Keil, et al., 2007). In
other words, diversity management brings about inculcating a sense of belonging in all employees of an
organization irrespective of the differences that exist among them thus entrenching in the organization a huge
level of effectiveness and efficiency in the output of the organization since every individual feel involved. It
simply increases their sense of participation and this in its overall state encompasses the principle of inclusion. It
is a concept viewed as a means of attaching value to employees as well as ensuring their full participation in the
entire activities carried out in an organization (Hanappi-Egger, 2012).
In all, the study aims at evaluating thoroughly the uniqueness and relevance of diversity and management in
relation to the overall growth and success of the organization and why it remains an incontrovertible decision for
organizations irrespective of the status to ensure that the principle of diversity management and inclusion are
effectively and robustly adopted and implemented.

Statement of Problem
According to research from Bersin undertaken by Deloitte, 77 percent of the organizations that were surveyed
strived to practice inclusion while 12 percent of the surveyed organizations have done well to actualize the
principle of diversity and inclusion (Deloitte, 2017). For McKinsey’s research on ‘Delivering through Diversity’,
it was revealed that 40 percent of organizations in Australia achieved business leadership premised on gender
diversity while in the United States, about 34 percent of organizations adopted this practice and then followed by
the United Kingdom with 32 percent (Co., 2018). The government of Indian has put in place measures to ensure
the adequate practice of gender diversity but despite this long initiative, only about 28 percent of the entire
workforce in Indian constitute women of the 48.5 percent of the female population in the country (Das, 2018).
The above case of India, in particular, shows the level of gaps in the workforce which of course requires urgent
and proactive measures to tackle. It is a known fact that differences in the workforce, if not well managed, can
bring about inefficiency and an unproductive scenario of employees. The absence of diversity management in an
organization has been described as capable of leading to ineffective functional of employees, and conflicts
among the employees which of course have the capacity to reduce the performance of an organization (Akbaba,
2020). It therefore, means that the concept has in abundance beneficial factors it brings to the organization.
Despite the benefits attached to diversity and inclusion, its non-effective adoption and implementation remain an
issue of concern; hence, the interest of the current study to critically examine the benefits of diversity
management and perhaps the challenges that are responsible for its non-implementation all geared towards the
overall interest of the organization as regards its contribution towards the growth and success of the organization
across the board.

Objectives of the Study

The study among other things seeks to establish the role of diversity management in relation to it being a
strategic brainbox for the growth and success of the organization in general terms. In a nutshell, the study strives
to establish the fact that diversity management is genuinely a strategic brainbox of organizational growth and
success which should be adopted and practiced by organizations with a full sense of responsibility and strong
attention and focus.

Literature Review
Definition of Leadership.
Leadership is perhaps the most vital and important element required across all spheres of human endeavors
because of the immense roles it plays. It has become a very strong integral part of an organization’s operation
due to the influential effect it has on the organization towards the realization of goals and objectives. Leadership
can be defined as the process-oriented concept with non-specific practices of challenging the process by
inspiring a shared vision, enabling others to act, modeling the way as well as encouraging others (Klingborg,
Moore and Varea-Hammod, 2006). On the part of Ganta and Manukonda, leadership is defined as a kind of
power possessed by an individual who has the capacity to influence the values, beliefs, behaviors, and attitudes
of others (Ganta and Manukonda, 2014). The imperative nature of leadership becomes non-negotiable, and this
is strongly linked to the influential roles it plays in any stratum where it is practiced effectively. As rightly put by
Grint, an individual who demonstrates strong leadership qualities will ultimately serve as a role model to those

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he leads because the leader who is able to effectively achieve results will gain the trust and admiration of the
people, a situation that will further allow him to influence the values, beliefs, behaviors, and attitudes of the
followers (Grint, 2007). Perhaps, the position of Grint unarguably explains the rationale behind the clamor for
good leadership among organizations all over the world.

The meaning of Diversity

The growing nature of the global population has given rise to a series of factors that have affiliations with
heterogeneity in the labor market and by extension the entirety of the workforce. These factors arising from the
heterogeneous nature of the workforce include demographic changes, people with disabilities, the need for
women’s employment drive, and lots more (Vielfalt, 2014). According to Griffin and Moorhead, diversity can be
defined as the similarities and differences arising from certain factors such as age, gender, ethnic heritage, race,
sexual orientation and physical abilities, and disabilities among the employees in an organization (Griffin &
Morrhead, 2006). It can also be described as the concept that refers to the different types of people and their
different characteristics within the organizations (Lussier & Hendon, 2019). Going further, Itam and Bagali
defined the concept as being anchored on four major categories which are racial, sexual, and ethnic balance,
understanding other cultures, culturally different values, and being widely inclusive (Itam & Bagali, 2018). A
careful evaluation of the positions of different scholars on diversity clearly indicates that diversity has a strong
link with the differences that exist among the employees or personalities in an organization as rightly
corroborated by the submission of Kreitz that diversity simply entails any considered significant difference alike
that separates or perhaps distinguishes an individual from another (Kreitz, 2008). Such differences according to
different scholars are peculiar to the people bearing these characteristics; hence, there is a need for total respect
for such characteristics or identities they embody. The necessity for diversity to be adequately considered and
adopted with seriousness by organizations stem from the fact that it has very undeniable links with the activities
of the organization across all facets as its absence may be detrimental to the collective goals and objectives of the
organization. Its adoption and thorough practice on the other hand has huge benefits, among which is the sense
of belonging and participation it impresses on the employees across the different characteristics that distinguish
them. This assertion is backed up by the view of Saxena that diversity ensures that there is a sense of belongings
among the individuals thus creating a plethora of benefits such as productivity, and innovations from the
individuals as well as leading to a very healthy competitive environment (Saxena, 2014). The above, therefore,
bequeath on the different organizations to ensure that the characteristics among the individuals in the
organizations are adequately and effectively managed and this is where the concept of diversity management has
its own role.

Diversity Management.
With the characteristics that bring about differences among the people in an organization, there is certainly the
need for these differences to be effectively managed to serve as strength to the organization; hence, the reason
behind diversity management. Diversity management can be defined as a managerial approach that lays
emphasis on variety in the workplace as one of the indicators of higher work efficiency (Keil, et al., 2007). Olsen
and Martins defined diversity management as the utilization of human resources management practices for the
purpose of maintaining variations in human capital and also ensuring that such variations or differences do not
pose a negative influence on the pursuit of the goals and objectives of the organizations (Olsen & Martins,
2012). Diversity management can also be described as the ‘’planning and implementing organizational systems
and practices to manage people so that the potential advantages of diversity are maximized while its potential
disadvantages are minimized (Raghavendra et al., 2018, p. 160). The basic instrumental function of diversity
management is to ensure that the differences of the people which are the offshoots of their characteristics
alongside the lines of ethnicity, racial background, gender, color, physical status, religion, and lots more must be
well managed by organizations for maximum results as specifically put that the basic notion of diversity
management the diversity of the individual employee is well recognized so as to serve the purpose of ensuring
the economic success of the organizations (Vielfalt, 2014). This assertion clearly aligns with the incontrovertible
fact that a well-managed diverse workforce has the unrestricted potential and capacity to better the lots of the
organizations especially as it further strengthens the organizations’ pursuit of the actualization of goals and
objectives while the otherwise of this may create a danger looming situation for the organizations. For an
organization to catch up and maintain the momentum of globalization across the world as related to the survival
of the organizations, there is need for the adoption and effective practice of diversity management and inclusion
(Folakemi, Anthonia, Olaleke, Friday, & Dayo, 2019). In a nutshell, the existential state of organizations in a
globalized world especially organizations striving to get internationalized must strictly and eventfully be
engaged in the right and adequate practice of diversity management as this will help guarantee their
sustainability drive in the globalized world as well as the fulfillment of the set-out goals and objectives. A well-
managed diverse group of individuals ultimately brings about the right principle of inclusion.

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Inclusion Defined
The key essence of managing diversity in the organization is to ensure that the people are included in the
organization’s activities across the board. Inclusion according to Ponce-Pura is the individuals’ sense of
belonging in terms of their experiences and perceptions which are recognized for qualities and the individuality
in the context of the organization (Ponce-Pura, 2014). On his part, Roberson defined inclusion as the elimination
of every form of hindrance which could prevent the employees from full participation and contributing to the
activities of the organizations (Roberson, 2006). The deliberate attempt by organizations on how well their
employees connect with one another, engage, and utilize people across all the major differences could also be
described as inclusion (Ferdman, 2013). Gasoreck went further to define inclusion in an encompassing manner
which according to this scholar includes; employees being valued with their ideas taken into strong account and
adopted, employees partnering successfully both in and across departments, a sense of belonging by current
employees, and the attraction of prospective employees to the organization, sense of commitment of employees
to one another, the organization and the goals and objectives of the organizations, and the organization continues
to foster flexibility and choice as well as attend to the diversity that exists in the organization (Gasoreck, 2000).
For the Employers Network for Equality and Inclusion, inclusion simply refers to the optimum utilization of the
differences that exist among the employees to actualize maximum organizational growth and success (ENEI,
2017). It can also be explained to mean the encouragement and enhancement of diversity in the workplace with
the sole aim of achieving the needed rewards and commitments from the employees in relation to the pursuit of
the goals and objectives of the organization (Practice, 2017). The hallmark of inclusion is that it creates a huge
sense of belonging and participation in the individual employees since they are not subjected to any form of
discrimination on the ground of their characteristics by the organization or fellow employees. In other words,
employees have the freedom to be or express themselves within the vicinity of the workplace while their
differences and similarities are adequately explored by the organization to the functionality and performance of
the organization.

Effective Leadership and Organizational Success

Effective leadership over the years has assumed perhaps the most important and crucial aspect needed by every
organization to ensure the goals of sustainability and expansion even in the face of challenges which are products
of the ever-dynamic global space and the rapid growth arising from the economic environment (Cabeza-Erikson,
Edwards, & Van Brabant, 2008). There are numerous areas or ways effective leadership contributes immensely
to the overall success of an organization. One such way is motivation. This implies that an effective leader
strives hard to ensure that the employees of an organization are well motivated to face the tasks assigned to them
in a bid to actualize the goals and objectives of the organization as corroborated by the submission of Atkinson
and Mackenzie who stated that if an organization lacks effective leadership, no changes or success will be
recorded in such an organization because there will be leaders that will motivate and lead the employees of the
organization as well as put in place the clear directional path to follow towards achieving the set-out goals of the
organization (Atkinson & Mackenzie, 2015).
Another way effective leadership can lead to the success of an organization is through learning. Effective
leaders ensure that the organization adopts learning as a critical component of its operations as rightly put that an
effective leader encourages the employees in an organization to acquire knowledge using certain kinds of
motivators like rewards, promotions etcetera (Azzam, 2014).
Besides the above two ways effective leadership contributes to the success of the organization, it also
ensures that trust is built because that is the most essential component that drives performance. The position of
Lee et al. can be used to buttress the efficacy of trust in leadership as captured in their submission that trust is an
essential issue in leadership for leaders because gaining the trust of the employees will facilitate the
improvement of the overall performance and commitment of the employees thus leading to the success of the
organization (Lee, Gillespie, Mann, & Wearing, 2010)

Contributions of Diversity Management to Organizational Growth and Success

The performance and success story of organizations are totally inseparable from the spirit of collectivism and
team work as strongly opposed to individualism and the principle of diversity management and inclusion are
indisputably aligned with collectivism and teamwork. As such, there are indeed benefits that are expected to
result from the adoption and practice of diversity and inclusion. Several scholars have lent their voices to the
debates on the benefits of diversity and inclusion to organizational success and growth. Among such scholars are
Al-Shamlan and Doblas who had their study examined the influence of workforce diversity on organizational
performance using AlAhujan Group in Bahrain as a case; the study revealed a strong correlation between
organizational performance and workforce diversity (Al-Shamlan & Doblas, 2019).
Another scholar whose work confirms the benefit of diversity and inclusion to organizational performance
is Saxena who opined that the productivity of the organization experiences a monumental increase due to the

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level of cordiality in the relationship between the employees (Saxena, 2014).

For Mariappan and Raghavan, an effective, efficient, and well-managed diversity has the potential of
ultimately leading to employment opportunities to work, grow, develop skills, abilities, innovation, effective
coordination as well as sustained communication in an organization (Mariappan & Raghavan, 2020). The
submission of Mariappan and Raghavan clearly addressed the benefits of diversity and inclusion from the
perspective of the employees; however, such benefits have a way of impacting positively the generality of the
activities of the organizations.
Generally, the benefits of diversity and inclusion in line with the different revelations gathered during this
study are discussed thus:
A. Diversity and Inclusion Lead to Higher and Improved Financial Returns
The strong and unwavering supports rendered by employees to one another on the ground of cordial
relationships arising from a well-managed diversity and sense of inclusion tend to increase the level of
productivity and total commitment just as organizations with adequate management of diversity have the
tendency of attracting more customers with deep loyalty. All of these can lead to higher and improved financial
returns. This position has been backed up by different scholars who hold the view that a workplace with a good
sense and practice of inclusiveness has higher financial returns than a workplace does otherwise.
Phungsoonthorn & Charoensukmongkol, (2020), the huge benefit of diversity and inclusion
According to Gephardt et al., (2016), went further to state that when companies practice diversity
efficiently, they begin to outperform their competitors especially those who think otherwise about engaging in
diversity management. It is expedient to state that a key reason companies that practice diversity and inclusion
will likely witness higher financial returns is the fact that people who are associated with employees of ethnic
groups or other characteristics will find it so easy to patronize companies that treat employees equally without
any recourse to discrimination.
B. The practice of Inclusiveness and Diversity Enhances Effectiveness Among Employees
Effectiveness is a direct product of satisfaction; a sense of belongingness and participation and all these
critical features are fully embedded in diversity and inclusion. In other words, when employees have in them a
sense of belongingness, participation, and satisfaction on the job, the byproduct is undeniably going to fetch
effectiveness and efficiency as the results. This implies that diversity and inclusion allow the employees to act
thoroughly having a sense of freedom which inadvertently leads to the perceptions on the part of the employees
of an undeniable sense of belongingness, and participation as well as creates the impression of being unique
among others in the organizations (Gephardt, Grassi, McCormick, & Shelton, 2016; Ortlieb & Sieben, 2014).
The effectiveness of employees in the workplace as a result of inclusivity ensures satisfaction on the job and this
of course by extension leads to a high level of productivity and commitment on the part of the employees as
accordingly backed by the submission of Back et al., which the relationship between inclusiveness and employee
effectiveness clearly shows that inclusion ensures employee satisfaction, thus generating enhanced productivity
ion the part of the employees (Back, Lowry, & Cartier, 2018). All the submissions of these scholars expressly
supported the fact that diversity and inclusion ensure increased and sustained effects on the part of the
employees. Therefore, it is beholding on organizations to ensure that they engage in the practice and adoption of
diversity and inclusion since it is certain that employees tend to work more productively when they feel a sense
of belonging and inclusiveness which in turn ensures the performance of the organizations across the board
(Moon & Christensen, 2020)
C. Diversity and Inclusion Leads to Organizational Growth
One of the surest ways a business or organization can grow speedily is by leveraging the opportunities
presented by diversity and inclusion. First, a perfect understanding of the marketplace can be achieved by
organizations that adopt and practice diversity and inclusion (Kim, 2006; van Knippenberg, 2007). The key
reason for the role of diversity and inclusion in serving as a benefit to organizations in areas of understanding the
marketplace is premised on the ground that customers and suppliers are becoming more diverse and for
organizations to gain penetration into such diverse markets with diverse customers and suppliers, there is the
need to employ the services of individuals who understand the diverse background of these people and such
could only be made realistic and result-oriented if the organizations entrench in the people through diversity and
inclusion the sense of belongings and participation (Farrer, 2004; Lowther, 2006). The simplest explanation of
diversity and inclusion being a benefit to organizations in the understanding of the marketplace is that it affords
the organizations the opportunity to have first-hand knowledge about the diversity of the customers and suppliers
which accords to such organizations a strong competitive edge over others.
According to O’Donovan, 2018, the following are some of the benefits of practicing diversity and inclusion
in an organization. They include:
● Cost savings in areas such as reducing turnover, reducing absenteeism, and reducing legal costs arising
from discrimination and other lawsuits.
● Winning talent war as employees who feel included in the decision-making process will likely wish to

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be part of the organization.

● Improving the innovation and creativity potential of the employees which in turn contributes to the
overall growth and success of the organizations.
● Increase flexibility.
● Ensures business growth in areas of market expansion and a better understanding of the marketplace.
● Increased commitment
● Enhances employee confidence, morale, and job satisfaction.
Fig. 1: Benefits of Diversity and Inclusion
Source: O’Donovan, 2018

Conclusion
The level of globalization in the business world and its huge implications on the collectivity of businesses across
all areas most especially the profitability, sustainability, competitive and expansionary realms cannot be
overemphasized just as the urgency for organizations to ensure the maximum and unwavering commitment of
the employees in a bid to gaining a competitive advantage over others cannot be in any way overlooked. In all of
these, there becomes a key role for the organizations to play and that is the singular role of ensuring that the
employees and indeed everyone affiliated with the organizations are made to feel belonged; hence, the popularity
of the concept of diversity management which has since become a child of necessity for all organizations across
the globe especially those that are very interested in going international. It is a fact that organizations are made
up of employees who are of different backgrounds and circumstances which by nature assume different
characteristics. Also, the globalized situation of the business world implies that there are so many stakeholders,
most visibly customers, and suppliers who also share the same fate as the employees coming from different
backgrounds and circumstances. Having the full understanding of this sacred fact by the organizations, it,
therefore, becomes a non-negotiable fact for organizations to leverage the diversity of these people to gain the
needed competitive advantage as well as ensure the actualization of the goals and objectives. These underlying
facts imply that diversity management is unarguably a concept that must be thoroughly embraced by all
organizations as the benefits it offers are numerous and useful to the growth and success of the organizations. As
clearly stated, a well-managed diverse group breeds inclusion which further creates a sense of belonging and
participation that in the long run generate a high level of effectiveness, efficiencies, productivity, creativities, and
innovations which are all needed to make organizations great and prosperous. As can be attested to by the views
of the different scholars in the study, diversity management can be in a way described as the strategic brainbox
of the growth and ultimate success of any organization owing to the inestimable roles it plays in improving the
fortunes of an organization that is firmed in its adoption and practice. The study has been able to establish the
usefulness and relevance of the instrument of diversity and inclusion towards the attainment of organizational
growth and success especially in the era of globalization which has become the hallmark of the entirety of
society, the business circle highly inclusive.

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