The Impact of the Workforce Diversity on Organization and Economic

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TheImpact of the Workforce Diversity on Organization and EconomicPerformance

Topic:Performance

Reference:

Ehimare,Omankanlen, A. and Ogaga-Ochene, Joshua, O. “The impact ofworkforce diversity on organizational effectiveness: A study of aNigerian Bank”. Annalsof the University of Petroşani Economics11, no. 3 (2011): 93-110.

Researchquestion/hypothesis:

Demographicallydiverse workgroups are more likely to be less effective when workingin contexts that put more emphasis on competition-oriented culturesthan those that do not emphasis on competition-oriented cultures.

Method:

Themethods used included a survey of 120 work teams from Lagos. Theseteams were selected randomly to avoid bias, while the data wascollected using the questionnaire. The main variables consideredinclude cultural diversity, performance measure, and growth strategy,which is the key measure of economic growth.

Results:

Thefindings of the study indicated that the ethnic diversity of theworkforce is insignificantly associated with performance as well asthe productivity of the employees. The study also showed that agediversity was positively associated with the productivity of theworkforce. The measure of the relationship between gender-baseddiversity and productivity indicated that the increase in genderdiversity in the labor market is negatively associated with theproductivity of the workforce.

Analysis:

Althoughthe cross-sectional study could not allow the researchers to considerthe association between workforce diversity and staff performanceover time, it is evident that the findings were free of bias sincethe work teams were selected randomly. The results addressed thehypothesis satisfactorily. The findings are relevant and useful toeconomic policy makers who should be interested in understanding thepossible impact of the ongoing workforce diversity on performance ofdifferent companies that contribute towards the growth of thenational economy.

Joseph,Darwin, R. and Selvaraj, Palanisamy, C. “The effects of work forcediversity on employee performance in Singapore organizations”.InternationalJournal of Business Administration6, no. 2 (2015): 17-29.

Researchquestion:

Whatis the relationship between age diversity, gender diversity, ethnicdiversity, and overall workforce diversity on staff performance inSingapore?

Method:

Theauthors answered the research question by conducting across-sectional study of a total of 316 employees residing inSingapore. Participants were recruited using convenient sampling inorder to ensure that people from different diverse groups wererepresented.

Results:

Theauthors identified the immigration and population aging, which arecurrent global trends, played a key role in increase the workforcediversity. In addition, the study findings indicated thatapproximately 56.3 % of the participants believed that workforcediversity could help them achieve their targets, 34.8 % of theparticipants remained neutral about the impact of the workforcediversity on their performance, while 8.9 % of the participants heldthat diversity affected their performance in a negative way. Fromthese results it is clear that the majority of the employees inSingapore value diversity, but a large proportion does not seem tovalue it.

Criticalanalysis:

Althoughthe cross-sectional methodology allowed the researchers to study thecorrelation between workforce diversity and staff performance withina short time, the use of the convenient sampling technique impliesthat the sample used may not have made a fair representation of thetarget population. However, the conclusion made by the authorsstating that the relationship existing between workforce diversityand staff performance is statistically insignificant makes sensebecause getting the advantages associated with diversity requireextra efforts from the management in terms of staff training.Therefore, the ongoing trend of staff diversity might affect theglobal economic in the absence of staff training on diversity.

Podsiadlowski,A., Groschke, D., Kogler, M., Springer, C., and Zee, K. “Managing aculturally diverse workforce: Diversity perspectives inorganizations”. InternationalJournal of Inter-cultural Relations37 (2013): 159-175.

Researchquestion/hypothesis:

Diversityperspective held by the organization determines its perception of thebenefits and costs as well as the level at which the organizationappreciates diversity.

Method:

Theauthors tested the aforementioned hypothesis by conducting across-sectional study of 150 participants sampled randomly from 113multinational corporations. Data was collected from participants withthe help of a questionnaire which reliability had been tested througha pilot test.

Results:

Theresearchers identified that the perception held by the management ofthe multinational companies about workforce diversity determined howthe company treated that diversity either as a benefit to or an addedcost. For example, multinational companies which management has apositive perception about diversity considered workforce diversity asa source of innovation. The management with a negative perception, onthe other hand, considered workforce diversity as a demerit since ithad to incur the cost of training the members of the staff on how tomvalue each other and share ideas in the work settings in spite oftheir cultural, ethnic, gender, and age differences.

Criticalanalysis:

Thefindings confirmed the pre-determined hypothesis by indicating thatthe perception held by the management determine whether themultinational corporation consider workforce diversity as an addedcost of as a benefit. A conclusion that diversity managementdetermines whether multinational corporations will benefit fromdiversity or not makes sense because the organizational managementplays a key role in ensuring that workforce diversity is harnessed tobring innovation and increase productivity in the organization.Therefore, the study indicates that the multinational corporationsshould have a positive perception about workforce diversity in orderto utilize it to enhance the performance of the global economy.

Simons,M. and Rowland, N. “Diversity and its impact on organizationalperformance: The influence of diversity constructions on expectationsand outcomes”. Journalof Technology Management and Innovation6, no. 3 (2011): 171-172.

Researchquestion / hypothesis:

Howwell does the current research reflect the issue of diversityoutcome?

Method:

Themethod used to answer the aforementioned research question involved aliterature review of a total of nine articles. Most importantly, theresearchers ensured that the articles included in the study weresurveys, field studies, and empirical research works, as opposed totheoretical publications. In addition, the studies reported in thearticles selected were spread over a period of 16 years starting from1995 to 2010.

Results:

Thestudy findings answered the research question by showing theliterature have explored and documented the relationship betweenworkforce diversity and performance outcome for the last 16 years.For example, most of the articles reviewed indicated a positiveassociation between workforce diversity and innovativeness, workforceoutput, diversity, and productivity. However, the increase inworkforce diversity was associated with decline in informationsharing among employees from different backgrounds and demand formore training on the management of diversity.

Criticalanalysis:

Althoughthe use of literature review methodology is associated with a declinein researchers’ control over the quality of data used in thearticles being reviewed, it helped Simons and Rowland to identifytrends on the relationship between diversity and output for more thanone a half decades. This proves that the escalation in workforcediversity has been a worry to economic policy markers. Therefore, thearticle`s conclusion that proper management of workforce diversitycan enhance organizational performance makes sense because the studyhas shown that the diversity is likely to enhance innovation andproductivity that will improve economic growth in the future.

Bibliography

Ehimare,Omankanlen, A. and Ogaga-Ochene, Joshua, O. “The impact ofworkforce diversity on organizational effectiveness: A study of aNigerian Bank”. Annalsof the University of PetroşaniEconomics11, no. 3 (2011): 93-110.

Joseph,Darwin, R. and Selvaraj, Palanisamy, C. “The effects of work forcediversity on employee performance in Singapore organizations”.InternationalJournal of Business Administration6, no. 2 (2015): 17-29.

Podsiadlowski,A., Groschke, D., Kogler, M., Springer, C., and Zee, K. “Managing aculturally diverse workforce: Diversity perspectives inorganizations”. InternationalJournal of Inter-cultural Relations37 (2013): 159-175.

Simons,M. and Rowland, N. “Diversity and its impact on organizationalperformance: The influence of diversity constructions on expectationsand outcomes”. Journalof Technology Management and Innovation6, no. 3 (2011): 171-172.