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Purpose

This study aims to investigate the influence of diversity climate and workgroup inclusion on employee cynicism, empowerment and self-efficacy. This study further examined the relative effects of diversity climate and workgroup inclusion on these outcomes. Finally, this study examined the moderating role of gender in these relationships.

Design/methodology/approach

Data were collected from individuals (n = 220) using field and online surveys in two major metropolitan cities in Pakistan.

Findings

The findings revealed that workgroup inclusion had more pronounced effects on employee outcomes than diversity climate. The findings also indicated that females may be more sensitive to diversity climate and workgroup inclusion compared to men.

Originality/value

This study makes three main contributions to the literature. First, it demonstrates that workgroup inclusion matters more than a supportive diversity climate in terms of its role in enhancing employee empowerment and self-efficacy, and reducing cynicism. Second, it also demonstrates that gender plays a role, with women being more responsive to diversity and inclusion efforts. Finally, by focusing on Pakistan – a society with strong hierarchies and traditional gender norms – the study provides a unique context to examine these relationships and concepts predominantly developed and tested in Western work settings.

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