Do Psychological Diversity Climate, HRM Practices, and Personality Traits (Big Five) Influence Multicultural Workforce Job Satisfaction and Performance? Current Scenario, Literature Gap, and Future Research Directions

Abstract

Growing trends of globalization bringing many challenges for organizations including managing performance of multicultural workforce toward achieving the organization’s objectives. Based on past researchers, many factors that influence employee’s performance have been highlighted, but the nature and scope of these factors have been limited to conventional settings. Therefore, the purpose of this article is to develop a comprehensive framework to better understand the role of the psychological diversity climate, human resource management (HRM) practices, and personality traits (Big Five) in job satisfaction and performance of a culturally diverse workforce. The review of past literature was conducted in the development of a conceptual framework. For this purpose, different databases, books, reports, and business magazines were consulted to evaluate current nature of literature related to multicultural workforce job satisfaction and performance. This conceptual article provides theoretical ground and proposes that psychological diversity climate, HRM practices (recruitment and selection, training and development, compensation and performance appraisal), and personality traits (Big Five) positively influence multicultural workforce job satisfaction. Finally, this article explains that culturally diverse workforce job satisfaction predicts job performance. This article suggests that managers and human resource professionals should develop psychological diversity climate among employees, upgrade HRM practices as per diversity needs, and attract individuals with certain personality traits such as agreeableness, emotional stability, and extroversions. Based on past theoretical review, the proposed framework is developed with the aim to address the gap and contribute to the HRM body of knowledge. These variables have never been explained by past researchers in multicultural setting.