Abstract:
This study investigates the role of diversity and equity in shaping employee behavior in the hospitality industry, with a focus on the moderating and mediating effects of psychological safety and effective HR practices. The current landscape of both public and private sector organizations, particularly in the hospitality industry, has been significantly altered by globalization, evolving consumer demands, and technological advancements. Innovation is no longer an option but a necessity for maintaining relevance and competitiveness. This study explores the role of diversity and equity in shaping employee behavior, focusing on the moderating and mediating effects of psychological safety and effective HR practices. The study addresses significant theoretical and contextual gaps. It highlights the need for a deeper understanding of how different forms of trust and psychological safety influence leadership outcomes and employee behavior, particularly in the hospitality industry. The research emphasizes the importance of considering cultural differences and the unique challenges faced by the Pakistani hospitality sector, where diversity and psychological safety are crucial yet under-researched. The findings of this study have both theoretical and practical implications. Theoretically, it contributes to the existing body of knowledge by elucidating the mechanisms through which diversity and equity initiatives influence innovative work behaviors. Practically, the study offers insights for HR professionals in the hospitality industry to develop effective strategies that promote inclusivity and innovation. By fostering an environment where employees feel valued and safe to express their ideas, organizations can enhance employee engagement, morale, and overall performance.Furthermore, the research aligns with the United Nations Sustainable Development Goals, emphasizing the broader societal importance of creating inclusive and equitable workplaces. The study's implications extend beyond organizational performance, contributing to economic growth, social inclusion, and reduced inequalities. By addressing these critical issues, this research aims to support the development of innovative, competitive, and socially responsible hospitality organizations that can thrive in a dynamic global market.
