According to Thomas (1990), diversity management (DM) refers to ‘the systematic and planned commitment on the part of organisations to recruit and retain employees from diverse demographic backgrounds’ (Kirton and Greene, 2009). Also many researches like, Acker (2000), focus on the dilemma faced by many diversity and equality officers, because of their position and status in the organisational structure.
She points out that implementation of DM and programmes is not only associated with the organisational change development but also equality and diversity, absence the direct authority to control the diverse capacities of the association (Acker 2000: 627, Ozbilgin, Tatli and Jonsen, 2015). In consequence, it is essential for organizations to address the needs and values of the different cohorts and age groups in order to manage them successfully (Cogin, 2012). In my point of view, advancements to the bottom line should be achieved by managing diversity over several human resource and strategic initiatives proposed at altering organisational culture and also the management of people ‘so that the potential advantages of diversity are maximised while its potential disadvantages are minimized’ ( Cox 1994: 11, Bendl et al., n.d.).Gender diversity in organisations traditionally stated that has a beneficial impact on the performance of the company. It is assumed that there are several aspects that we should state that especially gender diversity can positively affect the performance of the firms.
First, thetraditional hypothesis states that heterogeneous board will give a more neutral approach in the decision making of the firm. In addition, companies consisting of male and female will be able to perform higher in terms of innovation and creativity. Another aspect of the positive effect of gender diversity would be that since the level of diversity in an organisation is higher, this may lead to an improvement of the corporate image and hence to a better performance (Solakoglu and Demir, 2016). Third, in terms of the selection of top management and board members, a company with only male candidates, has a smaller sample of managers and directors available. This concludes that the company may be missing the best possible candidates. Thus, if the selection process comes from both genders is expected to lead to a more efficient management with a potential of better performance (Solakoglu and Demir, 2016). Finally, a diverse board will also lead to a more global perspective of the business environment, and this will also improve the better understanding of the marketplace.
Accordingly, diversity may lead to a more effective global relationship (Carter et al., 2003; Smith et al., 2005; Singh and Vinnicombe, 2004; Hambrick et al.
, 1996, Solakoglu and Demir, 2016). However, one can argue that gender diversity on the other hand can lead to a negative performance of the company. For instance, due to the diversity, more conflicts between employees occur, which makes the decision making process more difficult and simultaneously more time-consuming. In particular, for companies working over parts that have need of active response to the shocks in the market, diversity might be correlated not only with the value creation but with value destruction as well (Smith et al., 2005; Hambrick et al., 1996; Petrovic, 2008).