Diversity within management levels and organizational performance: employees’ perspective

Purpose - The purpose of this paper is to investigate the relationship between employees’ perceptions of diversity within management levels (i.e. senior management, middle management and lower management levels) and perceived organizational performance. The study also examines differences in perceptions of diversity within different levels of management across nature and ownership forms of organizations. Design/methodology/approach - Primary data were gathered from a sample of 400 employees from 162 organizations of diverse industries operating in India. Statistical techniques like analysis of variance and stepwise multiple regressions were used to analyze the data. Findings - Employee perceptions of diversity at the senior, middle and lower management levels of organizations are weakly, most significantly and positively, and negatively related to perceived organizational performance. It has also been found that the perceptions of diversity within different levels of management differ across nature and ownership forms of the organization. Research limitations/implications - The study relies on self-reported questionnaires as the method of data collection, which can lead to common-method bias. Hence, further studies can collect data by using multiple sources. In addition, future researchers can employ both subjective and objective measures to fetch results that are more valid. Practical implications - To harvest the benefits of diversity, organization should foster positive perceptions among employees toward diversity. Originality/value - The study gives new insight into why employees’ perceptions are significant in considering the possible outcomes of diversity.