EFFECT OF DIVERSITY IN WORKPLACE ON EMPLOYEE PERFORMANCE IN THE BANKING INDUSTRY IN KENYA
Diversity is increasingly recognized and utilized as an important organizational resource in regards to whether the goal is to be an employer of choice, to provide excellent customer service, or to maintain a competitive edge. The main objective of this study was to determine the effect of work diversity on employee performance in the banking industry in Kenya. The study also sought to determine the effect of education diversity, ethnic diversity, gender diversity and age diversity on employee performance in the banking industry in Kenya. A descriptive research design was used in this research. The study target population was all the middle level managers working at the headquarters of all the 43 commercial banks in Kenya. This study used stratified random sampling to select 30% of the commercial banks. The sample size of this study was therefore 221 middle level managers. Semi structured questionnaires was used in research study to collect primary data. Quantitative data in the structured questionnaires was examined by use of the statistical package for social sciences (SPSS version 21). Descriptive statistics including frequencies, percentages, mean and standard deviation were used to analyze quantitative data. The data was then represented in tables and graphs. Content analysis was used in the analysis of qualitative data. Additionally, correlation and regression analysis were used to establish whether there is a relationship between the dependent and the independent variables. The study established that gender diversity was influencing employee performance in the banking industry most, followed by education diversity and ethnic diversity. However, the association between age diversity and employee performance was insignificant. The study therefore recommends that workplace diversity management practices should be developed bring together the work experience of the old and the technological capabilities of the young to improve employee performance.
Abbas, Q. & Hameed, A. (2010). Gender Discrimination and Its Effect on Employee Performance or Productivity. Applied Human Resource Management. Research, 6(1-2), 75-76.
Adler, N. J. (2005). Cultural Synergy: Managing the Impact of Cultural Diversity. London: Sage Publications.
Alserhan, B. A., Forstenlechner, I. & Al-Nakeeb, A. (2010). Employees’ attitudes towards diversity in a nonwestern context. Employee Relations Journal, 32(1), 23-27.
Barrington, L. & Troske, K. (2001). Workforce Diversity and Productivity: An Analysis of Employer-Employee Matched Data. Strategic Management Journal, 10, 107–124.
Benschop, Y. (2001). Pride, prejudice and performance: Relations between HRM, diversity and performance. International Journal of Human Resource Management, 12, 1166-1181.
Berscheid, E. (2005). Interpersonal attraction. New York: Random House.
Brown, S. L. (2008). Diversity in the Workplace: A Study of Gender, Race, Age, and Salary Level. Academy of Management Journal, 44(3), 533-545.
Bryman, A. (2003). Integrating quantitative and qualitative research: how is it done?’ Qualitative research, 6(1), 97 – 113.
Byrne, D., Clore, G. & Worchel, P. (2003). The effect of economic similarity-dissimilarity as determinants of attraction. Journal of Personality and Social Psychology, 4, 220–224.
Cajander, A., Daniels, M., & McDermott, R. (2012). On Valuing Peers: Theories of Learning and Intercultural Competence. Computer Science Education, 22(4), 319-342.
Central Bank of Kenya (2013). Central Bank of Kenya, Bank Supervision Report. Retrieved from https://www.centralbank.go.ke/index.php/bank-supervision-report
Central Bank of Kenya. (2010). Bank Supervision Report. Nairobi: Government Printer .
Chatman, J., & O’Reilly, C. (2004). Asymmetric reactions to work group sex diversity among men and women. Academy of Management Journal, 47, 193–208.
Christian, J., Porter, L. W. & Moffitt, G. (2006). Workplace diversity and group relations: An overview. Group Processes & Intergroup Relations, 9(4), 459-466.
Cooper, D. R., & Schindler, P. S. (2006). Business Research Methods. New Delhi: Tata McGraw Hill.
Creswell, J.W. (2006). Research design. Qualitative, quantitative, and mixed methods approaches. Thousand Oaks CA: Sage.
Dahlin, K., Weingart, L., Hinds, P. (2005). Team diversity and information use. The Academy of Management Journal, 48(6), 1107–1123.
Dahm, M. (2003). The development of a needs analysis instrument for cultural diversity training: WDQ-II. Unpublished manuscript, University of Houston, Texas.
Elsaid, A. M. (2012). The Effects of Cross Cultural Work Force Diversity on Employee Performance in Egyptian Pharmaceutical Organizations. Business and Management Research, 1(4), 45-98
Emiko, M. & Eunmi, C. (2009). Diversity management and the effects on employees’ organizational commitment: Evidence from Japan and Korea. Journal of World Business, 44, 31–40
Erasmus. L. (2007). The management of workforce diversity and the implications for leadership at financial asset services. Retrieved from https://ujdigispace.uj.ac.za/handle/10210/356
Gacheri, M. M. (2012). Effect Of Workforce Diversity Management On Employee Performance In The Banking Industry In Kenya. Retrieved from http://hdl.handle.net/11295/65322
Gellner, K. & Veen, S. (2009). The Impact of Aging and Age Diversity on Company Performance. Academy of Management Executive, 14 (1), 93–105.
Greener, S.L. (2008). Business Research Methods. Copenhagen: Ventus Publishing ApS.
Harrison, D. & Klein, K., (2007). What's the difference? diversity constructs as separation, variety, or disparity in organizations. The Academy of Management Review, 32(4), 1199–1228.
Hasan, A., Muhammad, A. K. & Imran, A. (2009). Linkage between Employee's Performance and Relationship Conflict in Banking Scenario. International Journal of Business Management, 4(7), 45-52
Hoff, H. E. (2014). A critical discussion of Byram’s model of intercultural communicative competence in the light of bildung theories.Intercultural Education, 25(6), 508-517.
Hoffman, L., Harburg, E., & Maier, N. (2004). Differences and disagreement as factors in creative group problem solving. Journal of Abnormal and Social Psychology, 64, 206–214.
Hogg, M. A. & Terry, D. J. (2000). Social Identity And Self-Categorization Processes in Organizational Contexts. Academy Of Management Review, 25(1), 121-140.
Inmyxai, S. & Takahashi Y. (2010). Performance Comparison Derived from Human Resources between Male and Female Headed Firms in the Lao MSMEs. International Review of Business Research Papers, 6(2), 12-38.
Jayne, M. E. A. & Dipboye, R. L. (2004). Leveraging Diversity to Improve Business Performance Research Findings and Recommendations for Organizations. Human Resource Management, 43(4), 409– 424.
Jehn, K. A., & Bezrukova, K. (2004). A field study of group diversity: Workgroup context and performance. Journal of Organizational Behavior, 25(6), 703-729.
Jonathan, S. L., David, I. L. & Aparna, J. (2004). Do Birds of a Feather Shop Together. Journal of Organizational Behavior, 25, 731–754.
Joshi, A. & E. Jackson, S. (2003). Managing workforce diversity to enhance cooperation in organization. International Handbook of Organizational Teamwork and Cooperative Working.
Kochan, T., Bezrukova, K. Ely, R., Jackson, S., Joshi, A. & Jehn, K. (2002). The Effects of Diversity on Business Performance. Alexandria, VA: Diversity Research Network.
Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., Leonard, J., Levine, D., & Thomas, D. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management, 42(1), 3-21.
Kossek, E., Lobel, S. A. & Brown, J. (2005). Human Resource Strategies to Manage Workforce Diversity Examining The Business Case. Retrieved from http://www.sagepub.com/upmdata/7425_03_Konrad_02.pdf
Kothari, C. R. (2004). Research methodology: Methods and techniques. New Delhi: New Age International (P) Limited Publishers.
Kunze, F., Boehm, S. & Bruch H. (2009). Age Diversity, Age Discrimination, and Performance Consequences – A Cross Organizational Study. International Journal of Humanities and Social Science, 3(30), 187-192 .
Leonard, J. S. & Devine (2003). Diversity, Discrimination and Performance. California: Institute For Research on Labor And Employment.
Magoshi, E. & Chang, E. (2009). Diversity management and the effects on employees’ organizational commitment: Evidence from Japan and Korea. Journal of World Business, 44, 31–40
Mkoji, D. & Sikalieh, D. (2012). The Influence of Personality Dimensions on Organizational Performance. International Journal of Humanities and Social Science, 2(17), 184-192 .
Ndaire, E. (2009). Perceived benefits of workforce diversity policies and practices: A case study of Hilton Hotel, Nairobi. Retrieved from http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/12546
Newcomb, T.M. (2001). The acquaintance process. New York: Holt, Rinehart, and Winston.
Ngui, T. K., Elegwa M. & Gachunga, G.H. (2014). Effect of employee resourcing strategies on the performance of commercial banks in Kenya. International Journal of Education and Research, 2(1), 34
Obiero, O. C. (2014). Factors influencing high staff turnover in commercial banks in Kenya: a case of commercial bank of Africa. Retrieved from http://erepository.uonbi.ac.ke
Oluoch, P. M. (2006). Diversity management practices of commercial banks in Kenya. Retrieved from http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/21877
Opstal, E. Vv. (2009). Management Diversity. The relationship between the management of ethnic cultural, 3, 25-46.
Otike, F.R, Omboi, B. M. & Mwalekwa, F.K. (2011). Effects of Workplace Diversity Management on Organizational Effectiveness: a case study of Kenya commercial bank limited. European Journal of Business and Management, 3(2), 23-31.
Pitts, D. W., Hicklin, A. K., Hawes, D. P., & Melton, E. (2010). What drives the implementation of diversity management programs? Evidence from Public Organizations. Journal of Public Administration Research& Theory, 20(4), 867-886.
Rab, R., Lodhi, M., Ashraf, H., Riaz,S., Dustgeer, F., Sami, A., Mahmood, Z. & Ahmad, M. (2013). Effect of Workforce Diversity on the Performance of the Students. World Applied Sciences Journal 26 (10), 1380-1384.
Richard, O. (2000). Racial diversity, business strategy, and firm performance: A resource- based view. Academy of Management Journal, 43(2), 164-177.
Rosser, S. V. (2005). Through the Lenses of Feminist Theory. Frontiers: A Journal Of Women Studies, 26(1), 1-23.
Rudy, K. (2003). Liberal theory and feminist politics. Women & Politics, 20(2), 33.
Sallee, M. (2008). A Feminist Perspective on Parental Leave Policies. Innovative Higher Education, 32(4), 181-194.
Schmitt, M. T., Branscombe, N. R., Silvia, P. J., Garcia, D. M., & Spears, R. (2006). Categorizing at the group-level in response to intragroup social comparisons: a self-categorization theory integration of self-evaluation and social identity motives. European Journal Of Social Psychology, 36(3), 297-314.
Schoenherr, T., & Narasimhan, R. (2012). The fit between capabilities and priorities and its impact on performance improvement: revisiting and extending the theory of production competence. International Journal Of Production Research, 50(14), 3755-3775.
Sim, J. J., Goyle, A., McKedy, W., Eidelman, S., & Correll, J. (2014). How social identity shapes the working self-concept. Journal Of Experimental Social Psychology, 55, 271-277.
Simons, T. L., Peterson, R. S. (2000). Task conflict and relationship conflict in topmanagement teams: the pivotal role of intragroup trust. Journal of Applied Psychology, 85, 102-11.
Starlene, M. S. & Kimberly, N. R. (2011). Diversity and its Impact on Organizational Performance: The Influence of Diversity Constructions on Expectations and Outcomes. Journal of Technology Management & Innovation, 6(3), 45-54
Strawbridge, S. (2005). Althusser's theory of ideology and Durkheim's account of religion: An examination of some striking parallels. Sociological Review, 30(1), 125-140.
Timmermans, B., Ostergaard, C. R., & Kristinsson, K. (2011). Does a different view create something new? The effect of employee diversity on innovation. Research Policy, 9, 500-509.
Tole, L. A. (2004). Durkheim on Religion & Moral Community in Modernity. Sociological Inquiry, 63(1), 1-29.
Triandis, H., Hall, E. & Ewen, R. (2000). Member heterogeneity and dyadic creativity. Human Relations, 18, 33–55.
Van Knippenberg, D., De Dreu, C. K. W., & Homan, A. C. (2004). Work group diversity and group performance: An integrative model and research agenda. Journal of Applied Psychology, 89, 1008-1022.
Wambari, M. N. (2014). Workplace diversity management effects on implementation of human resource management practices in the ministry of health, Kenya. Retrieved from http://ir-library.ku.ac.ke/handle/123456789/10164
Yego, D.J. (2010). An Investigation On The Relationship Between I Employee Retention Strategies And Productivity In Commercial Banks, Kenya. Retrieved from file:///C:/Users/Titus/Downloads/Jesang%20Dorcas%20Yego.pdf
Yin, R. K. (2008). Case study research: design and methods (2nd ed.). Thousand Oaks: Sage Publications.
Zgourides, G. D., Johnson, L., & Watson, W. E. (2002). The influence of ethnic diversity on leadership, group process, and performance: an examination of learning teams. Research in organizational behavior, 20, 77–140.
- There are currently no refbacks.