Challenges of Diversity Management in Indian Public Sector Companies: The Role of Policy Design and Strategic Alignment in Enhancing HR Effectiveness

Diversity management has become an important focus for Indian public sector companies. These organizations are expected to ensure fair representation and create inclusive workplaces. This study looks into the challenges that public sector organizations face in managing workforce diversity. It also examines how policy design and strategic alignment affect the success of diversity management practices. Using a quantitative approach, the research analyzes key factors, including the effectiveness of HR strategies, the integration of diversity and inclusion principles into HR planning, and how well the organization’s vision and mission align with diversity goals. The findings show that the effectiveness of HR strategies and the integration of diversity principles are the most significant factors influencing policy design and strategic alignment. Correlation analysis reveals strong positive relationships among the variables, with the model explaining about 89% of the changes in policy design and strategic alignment. The study concludes that aligning HR policies with diversity goals is crucial for addressing challenges in diversity management within the public sector. Recommendations include redesigning policies, fostering leadership commitment, building capacity, and implementing strong monitoring systems to improve organizational inclusivity.