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The Impact of Workforce Diversity on Organizational Effectiveness: A Study of a Nigerian Bank

Author

Listed:
  • Omankhanlen Alex Ehimare

    (Covenant University, Ota, Ogun State, Nigeria)

  • Joshua O. Ogaga-Oghene

    (Covenant University, Ota, Ogun State, Nigeria)

Abstract

It is generally recognized that there is diversity in the workforce of any enterprise, be it business, government, or civil society. This study therefore seeks to find out the impact of workforce diversity on organizational effectiveness using a Nigerian bank for the study. We used the Blau’s1977 index of heterogeneity to measure the diversity index. While asset growth for the year 2008 and 2009, using 2007 and 2008 as base year was used to measure the growth strategy. To determine group diversity and performance outcomes moderated by workgroup context, a series of hierarchical regression analysis were conducted. The study finds significant correlation between some of the diversity variables as well as individual diversity variables with the measures of organizational effectiveness. Also it reveals that gender and ethnicity are negatively related to both employee productivity and performance bonus. In addition the study find that gender, age and tenure diversities are positively correlated and are significantly related. It is recommended that company executives use good strategies to effectively manage workforce diversity and collaborative research efforts should be done to ascertain the contextual variables that moderate workforce diversity to produce positive performance outcomes.

Suggested Citation

  • Omankhanlen Alex Ehimare & Joshua O. Ogaga-Oghene, 2011. "The Impact of Workforce Diversity on Organizational Effectiveness: A Study of a Nigerian Bank," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 11(3), pages 93-110.
    • Handle: RePEc:pet:annals:v:11:y:2011:i:3:p:93-110
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    References listed on IDEAS

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    1. Deborah Gladstein Ancona & David F. Caldwell, 1992. "Demography and Design: Predictors of New Product Team Performance," Organization Science, INFORMS, vol. 3(3), pages 321-341, August.
    2. Lisa Hope Pelled, 1996. "Demographic Diversity, Conflict, and Work Group Outcomes: An Intervening Process Theory," Organization Science, INFORMS, vol. 7(6), pages 615-631, December.
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    Cited by:

    1. Alshaabani, Ayman & Benedek, Andrea, 2018. "Trust Climate And Distributive Justice As Mediators Between Diversity Management Practices And Employees’ Behaviors," Acta Carolus Robertus, Karoly Robert University College, vol. 8(1).
    2. Ayat Mohammad Esam Saed Mohammad, 2021. "Effect of Workforce Diversity on Job Performance of Hotels Working in Jordan," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(4), pages 1-85, July.
    3. Mohammed Hossain & Muhammad Atif & Ammad Ahmed & Lokman Mia, 2020. "Do LGBT Workplace Diversity Policies Create Value for Firms?," Journal of Business Ethics, Springer, vol. 167(4), pages 775-791, December.

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    More about this item

    Keywords

    performance; organization; gender; age;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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