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PSY FPX 6740 Assessment 2 Values and Diversity


Capella University

PSY FPX 6740 Industrial/Organizational Psychology Practices in Personnel and Human Resource Management

Prof. Name


Values and Diversity

Company A, a developer of mobile game applications, shares the same goal as any business owner in today’s competitive market: to build a successful organization. Despite its significant growth over the past five years, Company A’s sales have stagnated over the last year. The company is based in New Jersey and employs fifty people. Despite its commitment to staying abreast of current trends, Company A’s workforce is predominantly composed of white males in their twenties and early thirties. To address this lack of diversity and to revitalize its market position, the owner has enlisted the help of a consulting Industrial and Organizational (I/O) Psychologist.

Diversity within the Workplace

In the modern era, workplace diversity has become a multifaceted concept. While ethnicity is a primary consideration, diversity in the workplace also encompasses a range of other factors, including gender, age, religion, physical abilities, and more (Cletus et al., 2018). According to Cletus et al. (2018), the complexity of workplace diversity is one of the most pressing issues in business and organizational management today. The owner of Company A is keen to diversify the workforce to appeal to a broader clientele.

A diverse workforce offers numerous benefits, both internally and externally. Diversity enhances problem-solving, boosts productivity through new perspectives, and improves employee performance by exposing them to a variety of cultures, backgrounds, and ways of thinking (Brodock & Massam, 2016). Consequently, increasing diversity can lead to greater workforce productivity and profitability.

However, small organizations like Company A face challenges in creating a more diverse workplace. Cost is a significant concern, and it can be difficult to justify the expenditure and demonstrate a return on investment for diversity programs. Nevertheless, organizations that implement diversity programs tend to have higher employee retention rates, which can reduce the costs associated with recruiting and training new employees over time (Leone, 2020). Positive changes in company culture can enhance employee retention. According to Leone (2020), another common challenge is the lack of resources to support diversity initiatives. Despite these obstacles, identifying challenges and developing solutions is crucial for success.

Practices to Introduce

To achieve diversity goals, it is essential to identify inequities in terms of diversity, equity, and inclusion within the workforce. Diversity initiatives often focus on increasing employment opportunities for women and ethnic or racial minorities, although they can target any disadvantaged group (Dobbin et al., 2011). Corporate culture plays a significant role in adopting diversity programs. Companies with a higher number of women managers are more likely to implement such programs, promoting pro-diversity corporate cultures (Dobbin et al., 2011).

PSY FPX 6740 Assessment 2 Values and Diversity

Research indicates that companies with greater racial and ethnic diversity tend to have better financial returns compared to those with less diversity (Dobbin et al., 2011). Diversifying Company A’s workforce can help achieve its profitability goals. Studies have shown that organizations with the highest gender diversity experience 15 percent higher financial returns, and U.S. companies with diverse executive suites report higher earnings (Dobbin et al., 2011). The following diversity programs, recommended by both the Society for Industrial and Organizational Psychology (SIOP) and the Society for Human Resource Management (SHRM), can help Company A achieve its goals:

Diversity Program
Employee Resource Groups (ERGs)
ERGs provide visibility for active employees and offer management different perspectives, experiences, and ideas from employees at all levels.
Mentorship Programs
Mentoring programs connect new employees with mentors who provide advice and guidance, facilitating exposure to new perspectives and ideas.
Standardization of Interviews
Structured interviews ensure all applicants are evaluated equally, reducing bias and allowing for fair assessment based on standardized criteria.


Implementing a diverse workplace in a small organization like Company A is challenging but essential. By valuing differences, Company A can create a competitive, thriving workplace with a fair work culture. The suggested programs can help Company A foster a more diverse workforce and customer base, ultimately improving its workplace environment and business outcomes.


Brodock, K., & Massam, G. (2016). How and why to hire a diverse workforce: What you need to know. Strategic HR Review.

Cletus, H. E., Mahmood, N. A., Umar, A., & Ibrahim, A. D. (2018). Prospects and challenges of the workplace diversity in modern day organizations: A critical review. HOLISTICA – Journal of Business and Public Administration, 9(2), 35-52.

Dobbin, F., Kim, S., & Kalev, A. (2011). You can’t always get what you need: Organizational determinants of diversity programs. American Sociological Review, 76(3), 386-411.

Leone, M. (2020). Diversity and inclusion in the workplace: Benefits, challenges, and strategies for success.

McNulty, Y., McPhail, R., Inversi, C., Dundon, T., & Nechanska, E. (2018). Employee voice mechanisms for lesbian, gay, bisexual and transgender expatriation: The role of Employee-Resource Groups (ERGs) and allies. The International Journal of Human Resource Management, 29(5), 829-856.

Muehlemann, S., & Leiser, M. S. (2018). Hiring costs and labor market tightness. Labour Economics, 52, 122-131.

PSY FPX 6740 Assessment 2 Values and Diversity

Wilson, A. H., Sanner, S., & McAllister, L. E. (2010). An evaluation study of a mentoring program to increase the diversity of the nursing workforce. Journal of Cultural Diversity, 17(4).

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