Walking a tightrope of exploitation: getting inside the black box of diversity-oriented HR practices–employee workplace well-being link using COR theory

Purpose Grounded in the conservation of resources theory, this study examines the relationship between diversity-oriented human resource management (HRM) practices (DHRP) and workplace well-being, by detailing a mediating role of problem-solving pondering and a moderating role of exploitative leadership. Design/methodology/approach Data were collected from 338 full-time white-collar employees working in Pakistan. Findings Results showed that DHRP is positively associated with workplace well-being, both directly and indirectly via problem-solving pondering. Furthermore, exploitative leadership is found to reduce the positive effect of DHRP on problem-solving pondering. It also weakens the positive indirect relationship between DHRP and workplace well-being. Practical implications This study pinpoints a key mechanism—problem-solving pondering—by which DHRP enhances workplace well-being and reveals that this mechanism varies according to the level of exploitative leadership. Originality/value This study addresses the black box problem in strategic HRM literature by examining the relationship between DHRP and workplace well-being via problem-solving pondering. It also investigates the moderating role of exploitative leadership, which influences the strength of this relationship.