| Summary: | Purpose – Diversity management is gaining attention in the organizations. This study aims to theorize and test a model linking efforts to support diversity and organizational value of diversity with job satisfaction and organizational identification and to propose that these relationships are mediated by an organization’s diversity climate. Design/methodology/approach – Employee survey was used to collect data from employees at an Australian manufacturing organization. Structural equation modelling in AMOS was performed for the proposed model, controlling for age and gender. Findings – The mediating role of diversity climate in the relationship of organizational value of diversity and outcomes (job satisfaction and organizational identification) is significant. The authors discuss theoretical, research and practical contributions. Originality/value – The present study extends the literature by testing a mediation model derived from the signalling and social exchange theories.
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