Insider Research on Diversity and 
Inclusion: Methodological Considerations 
dr. Zsuzsánna E. Horváth (a), ass. prof. dr. Attila Szakács (b), ass. prof. dr. Zsolt 
Szakács (b) 
(a) Budapest Business School, Institute of Executive Education, Budapest, Hungary, (b) John 
Von Neumann University, Szolnok Faculty, Szolnok, Hungary,  
Raziskava z osebno udeležbo o raznolikosti 
in inkluzivnosti: metodološki oziri 
ABSTRACT 
Workforce diversity management is fast becoming a significant component of in 
Multinational Corporations because it has outstanding benefits on inclusive workplace climate 
leading to improved work outcomes. The paper provides a conceptual background of the 
significance and implications of diversity management and inclusion, followed by a proposed 
insider research design. An employee perception focused approach is discussed that is 
believed to best capture the efficiency of diversity management and inclusion. 
Recommendations complement the conceptual framework and critical analyses. 
Keywords: diversity management, inclusion management, insider research, methodology, 
multinational corporations 
JEL: D23, F23, L22, M14  
POVZETEK 
Upravljanje raznolikosti delovne sile postaja vse pomembnejši sestavni del upravljanja 
večnacionalnih korporacij, saj ima izjemne prednosti za inkluzivno okolje na delovnem 
mestu, ki vodi k izboljšanim rezultatom dela. Prispevek ponuja konceptualno ozadje pomena 
in posledic upravljanja raznolikosti in inkluzivnosti, ki mu sledi predlagani model 
raziskovanja z osebno udeležbo. V članku avtorji razpravljajo o pristopu, usmerjenem v 
zaznavanje zaposlenih, ki naj bi najbolje zajel učinkovitost upravljanja in vključevanja 
raznolikosti. Priporočila dopolnjujejo konceptualni okvir in kritično analizo. 
Ključne besede: upravljanje raznolikosti, upravljanje inkluzivnosti, raziskovanje z osebno 
udeležbo, metodologija, multinacionalne korporacije 
JEL: D23, F23, L22, M14  
  
1. Introduction 
Workforce diversity management is fast becoming a significant component of human resource 
management practices in Multinational Corporations (MNC’s), as it fosters an inclusive 
workplace climate leading to improved work outcomes. Within the MNC’s strategic HR, an in 
particular in the promotion of organisational culture change, senior management perceptions 
on diversity management and the possible ways of achieving diversity goals. 
There is a gap in the academic inquiry in bringing together the DM (diversity management) 
and IM (inclusion management) threads and clearly presenting each with all the implications. 
There is also a scarcity of papers by practitioners presenting clear methodological guidelines 
on the design and delivery of research on the efficiency of diversity management and 
inclusion.  
The central tenet of the paper is the assumption (or hypothesis) (and supported by ample 
examples from relevant literature) that DM and IP within it is essential for the well-being of 
the workforce and the well-being of the workforce will define and result the performance of 
the company. It will also increase the capacity for innovation and finally result in the 
enhancement of the competitiveness of the company. 
More specifically, this study aimed to: 
(1) offer a conceptual framework on diversity and inclusion in the firm; 
(2) explore the relationships between diversity and inclusion characteristics, surface (or 
visible) and deep-level (or invisible) diversity, having regard to beneficial and detrimental 
outcomes; 
(3) suggest a unique type of methodology enabling researchers to explore the above 
characteristics 
(4) present a research design and framework that is centred on the employees’ perception of 
DM and IM. 
This paper is unique also in the sense that is proposes „insider” research approach of the DM 
and IM within MNC’s. A hypothesised assignment will lead the researcher/employer to 
advise on the implementation of the DM and IM. Through his understanding of the company 
by the participation of its day-to-day operation, the employee is best situated to both assess 
present practices and, combining experience with the conceptual background represented by 
the literature review, conduct research that will enable him to inform his advice to the senior 
management of the firm.  
2. Literature review 
The following section will provide a conceptual framework of the topics of diversity policy 
and inclusion, applying a narrowing perspective, that is, progressing from a wider to a more 
concrete and focussed perspective. The academic inquiry of the company culture is vast, and 
it is not in the scope of the paper to discuss all its facets, rather to grasp the framework and 
concepts leading to the analysis of the central topic of the research.  
2.1. Diversity management 
2.1.1. Definition and challenges 
The concept of diversity management which originated in the United States in the 1980s, has 
gradually become a strategic business issue for many organisations in other countries 
(Farndale et al., 2015). Workplace diversity is broadly defined as a mixture of differences and 
similarities among individuals within a given dimension that includes a whole range of 
individual and organisational components (Ponce, 2015). The term „diversity” itself refers to 
the quality of being different or unique at the individual or group level. According to Mor 
Barak et al. (2016), diversity characteristics can be described as belonging to two distinct 
layers, one observable and the other hidden: surface-level diversity including age; ethnicity; 
gender; gender identity; nationality language differences;; parental status; physical, mental 
and developmental abilities; race; religion; sexual orientation; skin colour; socio-economic 
status; education; work and behavioural styles; the perspectives of each individual shaped by 
their nation, experiences and culture—and more. Even when people appear the same on the 
outside, they are different. 
In the past, workforce diversity was thought to bring net value added to organizational 
processes and give organizations a competitive advantage in important business functions 
such as recruiting top talent, improving customer relations, fostering innovation and 
creativity, and generating a positive image in the community (Mor Barak et al., 2016) 
While relevant academic scholarship stipulates that „diversity improves the quality of 
management’s decisions and provides innovative ideas and superior solutions to 
organizational problems” (Shen et al., p.236), it is also argued that potential benefits and 
performance increase is not the result of greater workplace diversity per se. Contemporary 
non-hierarchical, flexible, collaborative management systems massively rely on tolerance for 
individuality, as it is the only way forward to the implementation of organisational 
development initiatives (Farndale et al., 2015). 
The field currently faces three major challenges that can be summarised as follows:  
 the strive for the definition of diversity and inclusion within a given national context 
and related HRM practice implications (e.g. talent management, recruitment and 
selection policy, performance management, flexible working practices); 
 extension of diversity in skills to include values; 
 tap into the national context when linking diversity and inclusion practices to 
performance outcomes. 
The levels of academic or practitioner inquiry on DM are the national, organisational and the 
team level. On the national level, DM inquiry includes gender empowerment characteristics 
of nations in which diversity and inclusion practices are being implemented. At the 
organisational level, the mainstream observations rely on how national cultural and 
institutional characteristics affect patterns of practices (Farndale et al., 2015). At the team 
level, the unit of observation is the range of performance outcomes as evidenced by the 
diversity within teams. It is agreed amongst various authors that diversity can either be based 
on nationality, or national culture can affect the relationship between other forms of diversity 
and their outcomes (i.e. gender diversity and team performance) (Farndale et al., 2015). It is 
also worthwhile adding the individual level of inquiry which offers a platform for the 
employees’ attitudes and reflections in the matter of DM, as well as their feedback on the 
organisational efforts for the efficient implementation and delivery of such policies.  
2.1.2. Peculiarity and challenges of DM in MNC’s 
Different countries and organisations outside of the US have a variety of diversity 
management approaches that are not always acknowledged because of the US-centric 
assumptions of diversity or simply because of the small body of research supporting it. The 
notion of diversity management is popular mostly among MNCs and represents a key issue in 
their human resource management agenda (Sippola and Smale, 2007). It is of rapidly growing 
interest among MNCs, from whom it has become common to be implementing some form of 
diversity management on an international scale. 
It is paramount to the MNC’s performance how the diversity practices are transferred from 
the home office of MNC to its regional offices, as MNC’s are faced with the competing forces 
of global practice and local responsiveness (Ponce, 2014). Consequently, and to successfully 
integrate HR practices, „MNCs adopt strategies for managing the workforce and integrating 
polices in the host country which are different from the strategies that they may use in their 
home country” (Ponce, 2014). 
On the other hand, the concept of workplace diversity signifies different meanings to different 
groups and individuals within an organisation and to the broader society within which it is 
studied. Each culture or nation is defined by its own unique diversity characteristics. 
According to Hofstede (1981), work-related attitudes must be understood within their cultural 
context. MNC employees tend to align themselves, at the very least, with the country where 
they work thereby producing a sub-culture of how members relate to each other, accomplish 
work and respond to changes.  
While the intentions might to be to encourage equality among employees, issues generally 
crop up, usually ensuing from cultural embeddedness. Many organizations, especially those 
operating in the USA, align themselves with the cultural heritage and regulations of the 
country they are embedded in (Harrison et al., 2006; Hofstede, 1981; Nishii and Özbilgin, 
2007). Many operate on the concept of „color-blindness”, which is treating all people equally 
irrespective of their skin colour, deploying a kind of „positive discrimination„ (Pringle, 2006; 
Lauring, 2013; Kochan et al., 2003). „Constitutional colorblindness„ is stipulated by the 
United States Supreme Court case evaluation, stating that „skin color or race is virtually never 
a legitimate ground for legal or political distinctions, and thus, any law that is ’color 
conscious’ is presumptively unconstitutional regardless of whether its intent is to subordinate 
a group, or remedy discrimination.” (Kull, 1998, p. 35). In the case of diversity management 
though, treating all the employees alike would be detrimental to the purpose of appreciating 
diversity which is thought to be the source of innovation, creativity and increased 
performance (Harrison and Sin, 2006; Farndale et al., 2015; Kochan et al., 2003). 
Without understanding other cultures, and without that knowledge, it would be difficult to 
understand equality. In addition to that, the initial cost of the mandatory training provided to 
each employee on how to manage Workplace Diversity is very high (Ratnam and Chandra, 
1996). This training extends to the supervisors and managers, and at time, clients. The 
programs involve a lot of traveling and investing productive hours. 
Recognising these behaviours provides a powerful impetus for companies to adopt diversity 
management practices. Cross-border implementation of diversity management in 
organisations becomes more challenging due to fundamental differences in national cultures, 
legislation, language, or ethnicity that affect industrial relations and interactions (Ponce, 
2014). 
The other major issue of implementing diversification in the workplace is that, it invites 
discrimination from both managers and employees. Many employees find it hard to work with 
a manager who is from a different background. 
2.2. Inclusion 
The act of including; a strategy to leverage diversity. While it is a well-known adage that 
diversity is omnipresent in whichever size communities, for its members to feel part of the 
community and have a sense of belonging or included, this sense must be created.  
Inclusion refers to „the individual’s sense of being a part of the organizational system in both 
the formal processes, such as access to information and decision making-channels, and the 
informal processes, such as ‘water cooler’ and lunch meetings where information and 
decisions informally take place” (Mor Barak, 2011, p. 166). A climate for inclusion, therefore, 
promotes employee perceptions of the organizational context that leads to the full acceptance 
of all employees and provides an environment in which the full spectrum of talents of 
individual employees are used. 
There are constant elements in the definitions relating to this research. First, there is a focus 
on belongingness, second is the focus on organisational environment, while the third is the 
focus on valuing employees. The inclusive workplace as defined by Mor Barak (2005) 
included collaboration with individuals and groups which are outside of the organisation and 
across national and cultural boundaries. It is interesting to note that this definition of inclusion 
expands to external linkages beyond organisational concerns. It places a strong value on 
inclusion through workplace policies and practices and synthesizes a comprehensive 
framework for understanding inclusion that includes corporate community collaboration, 
national and state collaboration, and international collaboration. 
Mor Barak (2005) noted five areas of inclusion covered within the organisation. These areas 
are: a) management leadership, b) education and training, c) performance and accountability, 
d) work-life balance, and e) career development and planning. Among these five areas, the 
most common approaches to inclusion are education and training, work-life balance, and 
career development and planning, which are key areas in human resource management. 
3. Methodology to research DM and IM  
The following section will focus on the methodological considerations of conducting research 
from the „inside”. This type of research is gaining more and more popularity as it is not only 
innovative in its approach but has several advantages over outsourcing the same work. The 
framework of analysis will therefore be a conjured scenario when an employee of the MNC 
has been given the brief and permission to design and deliver a research in view of exploring 
the current modus operandi of the DM and IM in the firm. 
3.1. Characteristics and Challenges of Insider Research  
Insider-research means research done by members of the organisational system and 
communities in their own organisations (Farndale et al., 2015). It is becoming popular among 
individuals who are on full-time employment and enrolled in an academic programme. 
Individuals undertake this arrangement on the assumption that they are familiar with the site 
and have ready access to data, making insider-researcher work a process of reflexivity with 
the researcher/employee in the centre. The various challenges required proactive and 
conscious efforts to maintain the credibility of the researcher and integrity of the research. 
An insider-researcher is privileged to possess knowledge, insights and experience before 
engaging in the actual research. Raelin (2008) recognizes that work-based projects may prove 
immensely beneficial to the long-term success of companies by making significant 
contributions to work practices. While potentially beneficial for the overall improvement of 
the organisational culture and performance, insider situatedness and prior knowledge and 
insights could also lead to biases (Lave and Wenger, 1991). Biases may be manifest in subject 
matter regarding the policies but also the organisation dynamics (Raelin, 2008). In response to 
this dilemma, two distinct strategies can be followed (Harrison and Sin, 2006). Firstly, it is 
suggested that the researcher/consultant keep an open mind on opinions and findings that 
were different from his/her fundamental and practical understanding of the subject. Secondly, 
it is advised to seek confirmation from peer research (external or internal) advisors to caution 
against statements in favour of the company’s practice without solid research objectives and 
questions with empirical data and more information. 
An additional burden or hardship for the researcher/employee is to attend to the demands 
imposed by the distinct roles (organisational role and researcher role). Maintaining high 
credibility both at the company and at the university is probably the most challenging 
experience (Harrison and Sin, 2006). Therefore, the researcher/consultant must carefully 
monitor the impact of organisational politics on the process of inquiry, to identify the major 
players involved both in the enabling and the delivery of the research, and to try to engage 
them in the processes (Wentling, 2000). The best way for this is an open and frank 
presentation of the benefits that the organisational culture can gain from the research both in 
terms of improved involvement (inclusion) of the workforce and the subsequent increase in 
the performance quality. Approval should be sought for the phases of the research and 
information must be channelled throughout all stages, especially during data collection. In 
case ethical considerations prevail, they must be cleared even in the design phase of the 
research. The best way to manage organisational politics and maintaining credibility of stature 
lies in the humility of positioning the researcher/employee within the bounds of professional 
and academic activities, understanding the power and interests relevant to stakeholders, 
knowing how to work within the changes happening in the organisation, and always seeking 
cooperation and support from superiors and colleagues. 
3.2. Consultancy assignment 
The hypothetical Consultancy consists of the Consultant (employee/researcher of the MNC) 
assigned the particular task to design and deliver the research on the modus operandi of the 
DM IM in the firm. It is believed that the Consultant, by his insider role is best situated to 
both investigate and to provide an assessment of the current conditions that prevail in the 
MNC. His internal role, combining experience with the conceptual background represented by 
the literature review, enables him to offer a feedback and set of recommendations to the 
senior management, without exposing the company to external observations. While the 
internal role could be a disadvantage as it prevents the Consultant from keeping distance and 
being entirely objective, it is believed that in this case it will be a distinct advantage having 
regard to the confidentiality of the survey. 
3.2.1. The Brief 
Hypothetically, and for the purposes of this study only, it is presumed that the Consultant has 
been asked by the International HR department to carry out a survey regarding the feasibility 
of the introduction of a DM and inclusion scheme to the firm. His Consultancy task consists 
of the following phases:  
 scanning the international literature on the topic of diversity management and 
inclusion 
 find some examples of diversity management as implemented by MNC’s 
 devise a way of assessing senior management as well as workforce perceptions on 
diversity management and inclusion 
 deliver the survey 
 evaluate and aggregate the findings 
 present a set of recommendations for the introduction of diversity management and 
inclusion to firm senior management  
3.2.2. Research design  
The first phase of the Assignment is the design of a survey to assess workforce perceptions of 
diversity management. Originally, the sample population would have consisted of two groups 
of respondents that were targeted, the senior management and the employees which are not 
part of the senior management. It was hypothesised, that these two stakeholder groups will 
have significantly different views on the topic, having regard to their different roles and 
responsibilities within the company. While the senior management members would have been 
able to report on issues such as the expectations and obstacles to the introduction of DM, 
employees with lower levels of management responsibility will not have such perspective. 
However, owing to the sensitivity and the initial decline of participation by senior 
management members, only the employee sample remained. 
Equally owing to the sensitiveness of the topic of the DM, it is foreseen that not many 
respondents would be willing to return the questionnaire. The study design therefore deploys 
two types of data analysis methods, quantitative and qualitative. From a methodological 
perspective, the use of mixed methods is a new research paradigm that evolved in response to 
the persistent antipathy between quantitative and qualitative approaches. 
Mixed methods allow the researcher to elaborate, enhance, or clarify the results from another 
method and discover different concepts that could lead to reframing of the research questions 
and expanding the range and breadth of inquiry (Ponce, 2014). Third and most importantly, 
mixed methods allow the researcher the potential to triangulate in data gathering and analysis. 
It is suggested that the study design (exploratory, combination of quantitative and qualitative 
methods and based on a small number of study population), does not establish hypotheses, 
rather formulates research questions, the answers to which will be derived from the results. 
The research questions use the conceptual foundation that has been laid in the Literature 
Review section. 
In the quantitative section, means of scales will be analysed while in the qualitative section 
some representative answers will be presented. In exploratory research such as this one, a 
combination of the two methods sheds more light on the perceptions by the employees, than a 
purely quantitative analysis (Mor Barak et al., 2016).  
The third method of data collection may be gathering and analysing secondary data, company 
history, policies available on their website.   
Research topics have been created with a pool of individual Research Questions each 
addressing a distinct aspect of the topic. The items have been formulated having regard to the 
essential stipulations of the studies portrayed in the Literature Review. 
Research Question Group 1: DM  
This topic is divided into the following sub-topics: 
How can the employees attitude and perception of the DM within the company culture be 
grasped and described? Are they aware of the existence of such policy and how do they see its 
implementation? What are their personal reflections on the ways and solutions that the 
company culture is offering to them? What are the strengths and weaknesses of the current 
DM as seen by the lens of the employees? Do they experience any kind of discrimination in 
the company? 
Research Question Group 2: Inclusion (organisational level) 
This topic is divided into the following sub-topics: 
How can the employees attitude and perception of the IM within the company culture be 
grasped and described? Are they aware of the existence of such policy and how do they see its 
implementation? What are the strengths and weaknesses of the current IM as seen by the lens 
of the employees? How is the IM embedded in the DP and how does it impact the overall 
performance of the company? 
Research Question 3: Inclusion (individual level) 
What are their personal reflections on the ways and solutions in IM that the company culture 
is offering to them? 
3.2.3. Questionnaire Development  
Questionnaire questions were developed in order to target areas which are covered by the 
research questions. They are based on the conceptual introduction and research done on the 
topic of diversity management and inclusion. The analysis of the firm’s Code of Ethics and 
Conduct (CEC) will be indicative of certain already accepted company culture norms and 
behaviours, and the questions pointed in the direction of them. Amongst the questionnaire 
questions there is a dominance of the questions pertaining to the ‘inclusion’ topic as it is 
believed that the workforce will have more detailed opinion and feedback in this regard. 
Diversity management, its characteristics, design and implementation are more a strategic HR 
management issue and therefore it is more a domain and competence of the management. 
Inclusion, on the other hand, is directly involving the subjective well-being and performance 
of the workforce, and therefore they have more stakes in it. Furthermore, they may have more 
impact in the shaping of the inclusion policy (Mor Barak et al., 2016). 
The suggested Employee questionnaire consists of the following sections, as presented in 
Table 1. Its rubrics comply with the survey research design thinking as defined in the previous 
section and carry all the characteristics of the questionnaire questions. 
 
The questionnaire questions and the corresponding responses have been grouped into 
constructs such as DP, Inclusion (Organisational level), and Inclusion (Individual level). 
Control questions such as age, gender and seniority (number of years spent within the 
company) should be also asked. The questionnaire contains explanatory definitions of both 
diversity and inclusion as well as well-being so that the respondents could reflect upon them. 
The sources of these definitions are the same as above in the conceptual introduction. As it is 
a sensitive topic and involves the direct criticism of the senior management’s efforts (or the 
absence of it) on the DP and inclusion, it is essential that no respondent may be subsequently 
discriminated for having responded in any way, critical or not. Questionnaires can be sent out 
by email to a select number of the employees making sure that there is an anonymity in the 
replies so that the identity of the respondents could be kept unidentifiable.  
The data collection can be followed by the data treatment and analyses. A detailed 
presentation of the research findings can then be made available to the senior management, 
together with the views and opinions of the researcher/employee. 
4. Conclusion 
The implications of diversity in the workplace are manyfold, but the most significant one is 
the increase in turn-over as well as the reduction of absenteeism, which, in today’s world, is a 
huge advantage for companies in the drive of recruiting, retaining and motivating talent which 
is in shortage.  
Managing for inclusion is a dynamic and cyclical two-stage process. The first stage is reactive 
and includes efforts to recruit and employ a more diverse workforce. The second stage is 
proactive and requires „instituting policies and procedures that give every member of the 
workforce a sense of being valued for who they are and engenders a sense of belonging” (Mor 
Barak, 2015; Mor Barak, 2011).  
The study addressed this second stage by preparing the ground for policy institution or the 
modification of current policies. It proposed a method enabling senior management to verify 
the efficiency of existing policies that basically focused on the analysis of the perception of 
the employees. To this end, the study utilised a scenario of hypothetical assignment, or brief 
from senior management to explore the implementation of DM and IM with the help of 
insider research, which is concurrently explored and deployed by management practitioners 
(e.g., Mor Barak, 2014; Mor Barak et al., 2016; Nishii, 2013; Roberson, 2006). Future 
research threads include the actual delivery of the research and the verification of the 
usefulness and robustness of the research instruments set out in the research design. 
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Korespondenca/Correspondence: zsenilia1@gmail.com, szakacs.attila@gk.uni-
neumann.hu, szakacs.zsolt@gk.uni-neumann.hu