This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain the copyright without restrictions for their published content in this journal. HSSR is a SHERPA ROMEO Green Journal.
This is an open-access article distributed under the terms of
WORKFORCE DIVERSITY AND EMPLOYEE PERFORMANCE: A CASE OF COMMERCIAL BANKS IN PAKISTAN
Corresponding Author(s) : Tania Mushtaque
Humanities & Social Sciences Reviews,
Vol. 9 No. 3 (2021): May
Purpose of the Study: The fundamental objective of this study was to examine the association between workforce diversity and employee performance in commercial banks of Pakistan.
Methodology: Gender, age, education, and ethnic diversity contribute to the workforce's diversity. A standardized questionnaire was distributed amongst the 400 employees of commercial banks of Pakistan to collect data. However, 281 employees, constituting 70.25%, responded. The research hypotheses were tested by using a multi-regression model through Stata16 for data analysis.
Main Findings: The outcomes indicated a positive and significant association between gender diversity and employee performance. Gender diversity and age diversity are strong predictors of employee performance in Pakistan. However, the findings revealed that employee performance is not affected by education or ethnic diversity.
Applications of the study: This study has significant implications from both a theoretical and a realistic perspective. This study contributes by adding sound theoretical literature to the body of knowledge on workforce diversity and employee performance. From a practical perspective, this study sheds more light on how workplace diversity affects employee performance in the banking sector of an emerging economy like Pakistan. The results of this study can also be used to build strategies to improve the implementation of employee diversity in an existing market.
Novelty/Originality of this Study: Studies have been conducted to analyze the impact of diversity on employee performance, but this is the first study that has investigated the association between workforce diversity and employees performance with rich facets and particularly in the context of an emerging economy like Pakistan and specifically in commercial banks.
Download CitationEndnote/Zotero/Mendeley (RIS)
Adhikari, D.R. (2009). Organizational behavior. Kathmandu: Buddha Academic Enterprises Pvt. Ltd.
Adhikari, D.R., & Shrestha, P. (2019). Principle of management. Kathmandu: Kriti Publication Pvt. Ltd.
Adler, N. (1986). Cultural synergy: Managing the impact of cultural diversity. 1986 annual: Developing Human Resources, 229-238.
Agrawal, G. R. (2016). Organizational behavior in Pakistan. Kathmandu: M.K. Publishers.
Algahtani, A. (2013). Diversity in the Corporate Setting. International Journal of Business and Social Science, 4(14), 53-57.
Barrington, L., & Troske, K. (2001). WFD and productivity: An analysis of employer-employee matched data. Strategic Management Journal, 10, 107-124.
Brown, S. (2008). Diversity in the Workplace: A study of gender, race, age, and salary level. Academy of Management Journal, 44(3), 533-545.
Brown, S., & Lam, S. (2008). A meta-analysis of relationships linking employee satisfaction to customer responses. Journal of Retailing, 84(3), 243-255. https://doi.org/10.1016/j.jretai.2008.06.001 DOI: https://doi.org/10.1016/j.jretai.2008.06.001
Carrell, M.R., Mann, E.E., & Sigler, T.H. (2006). Defining workforce diversity programs and practices in organizations: A Longitudinal Study. Labor Law Journal, 57(1), 5-12.
Choi, J. (2007). Group composition and employee creative behavior in a Korean electronics company: Distinct effects of relational demography and group diversity. Journal of Occupational and Organizational Psychology, 80(2), 213-234. https://doi.org/10.1348/096317906X110250 DOI: https://doi.org/10.1348/096317906X110250
Choi, S., & Rainey, H. (2010). Managing Diversity in US federal agencies: Effects of Diversity and diversity management on employee perceptions of organizational performance. Public Administration Review, 70(1), 109-121. https://doi.org/10.1111/j.1540-6210.2009.02115.x DOI: https://doi.org/10.1111/j.1540-6210.2009.02115.x
Eagly, A., & Wood, W. (1991). Explaining sex differences in social behavior: A meta-analytic perspective. Personality and social psychology bulletin, 17(3), 306-315. https://doi.org/10.1177/0146167291173011 DOI: https://doi.org/10.1177/0146167291173011
Early, P., & Mosakowski, E. (2000). Creating Hybrid Team Culture: An Empirical Test of Transnational Team Functioning. Academy of Management Journal, 43(1), 26-49. https://doi.org/10.2307/1556384 DOI: https://doi.org/10.2307/1556384
Emiko, M., & Eunmi, C. (2009). Diversity management and the effects on employees' organizational commitment: Evidence from Japan and Korea. Journal of World Business, 44(1), 31-40. DOI: https://doi.org/10.1016/j.jwb.2008.03.018
Erasmus, L. (2007). The management of workforce diversity and the implications for leadership at financial asset services. University of Johannesburg, South Africa.
Garen, G. (2003). Dealing with Diversity. A volume in LMX Leadership. U.S.A.: The series. U.S.A: Information Age Publishinghttp://en.wikipedia.org/wiki/Languages_of_Pakistan (accessed on 4 February 2020)
Hashim, M., Ullah, M., Khan, M.A., (2017). Impact of time flexibility on employees' performance: A study of teaching faculty in government colleges of management sciences Peshawar. City University Research Journal, 2(2), 34-47.
Khan, F., Sohail, A., Sufyan, M., Uddin, M., & Basit, A. (2019). The effect of workforce diversity on employee performance in the Higher Education Sector. Journal of Management Info, 6(3), 1-8. https://doi.org/10.31580/jmi.v6i3.515 DOI: https://doi.org/10.31580/jmi.v6i3.515
Khan, K. M., Ullah M. (2021). Mediating Role of Ethical Leadership Between Employees Empowerment and Competitive Edge: A Case of Commercial Banks in Pakistan. Humanities & Social Sciences Reviews, 9(2), 219-231. https://doi.org/10.18510/hssr.2021.9223 DOI: https://doi.org/10.18510/hssr.2021.9223
Kochan, T., Bezrukova, k., Ely, R., Jackson, S., Joshi, A., Jehn, K., et al. (2003). The effects of diversity on business performance: Report the diversity research network. Human Resource Management, 42(1), 3-21. https://doi.org/10.1002/hrm.10061 DOI: https://doi.org/10.1002/hrm.10061
Kyalo, J., & Gachunga, H. (2015). Effects diversity in the workplace on employee performance in the banking industry in Kenya. The Strategic Journal of Business and Change management, 2(53), 145-181.
Leonard, J., & Devine. (2003). Diversity, Discrimination, and Performance. California: Institute For Research on Labor And Employment. https://doi.org/10.2139/ssrn.420564 DOI: https://doi.org/10.2139/ssrn.420564
Oerlemans, W., Peeters, M., & Schaufeli, W. (2001). Ethnic diversity at work: An overview of Theories and Research. In
K. Näswall, J. Hellgren & M. Sverke (Eds.), The Individual in the Changing Working Life (pp. 211-232): Cambridge University Press.
Omankhanlen, A., & Ogaga-oghene, J. (2011). The impact of workforce diversity on organizational effectiveness: a study of a Nigerian bank. Annals of the University of Petroşani, Economics, 11(3), 93-110.
Raaza-Naqvi, S., Ishtiaq, M., Kanwai, N., Butt, M., & Nawaz, S. (2013). Impact of gender diversity on team performance: The moderating role of organizational culture in telecom sector of Pakistan. Asian Journal of Social Science and Humanities, 21(2), 1228-1235.
Rue, L., & Byars, L. (1993). Supervision: Key link to productivity. (4th ed.). Chicago: Irwin.
Shaikh, S., Channar, P., Shaikh, M., &, Ullah, M., (2021). Financial constraints and listed sugar
mills on Pakistan Stock Exchange. International Journal of Management, 12(3), 70-76.
Shrestha, P. (2013). Perceived organizational justice and job performance. Germany: Lap Lambert Academic Publishing.
Shrestha, P. (2016). Organizational justice and employee work outcomes in the service sector of Pakistan. Unpublished Ph.D. dissertation submitted to Office of the Dean, Faculty of Management, Tribhuvan University, Kathmandu, Pakistan.
Shrestha, P. (2018). Service quality and customer satisfaction: Evidence of Pakistani banks. NCC Journal, 3(1), 121-133. https://doi.org/10.3126/nccj.v3i1.20254 DOI: https://doi.org/10.3126/nccj.v3i1.20254
Shrestha, P. (2019). Banking customer attitudes toward ATM service in Pakistan. International Journal of Advances in Scientific Research and Engineering, 5(12), 88-93. https://doi.org/10.31695/IJASRE.2019.33652 DOI: https://doi.org/10.31695/IJASRE.2019.33652
Shrestha, P. (2020). Business environment in Pakistan. Kathmandu: Kriti Publication Pvt. Ltd.
Shrestha, P., & Parajuli, D. (2020). Diversity of Demographic Characteristics and Work Performance in Pakistani Banking Industry. European Journal of Business and Management, 12(36), 1-8. https://doi.org/10.7176/EJBM/12-36-01 DOI: https://doi.org/10.7176/EJBM/12-36-01
Ullah, M. (2020). Women Empowerment and Social Development in Afghanistan through Micro Finance. International Journal of Academic Research in business and Social Sciences, 10(12), 377-389. DOI: https://doi.org/10.6007/IJARBSS/v10-i12/8324
Wegge, J., Roth, C., Kanfer, R., Neubach, B., & Schmidt, K.-H. (2008). Age and gender diversity as determinants of performance and health in a public organization: The role of task complexity and group size. Journal of Applied Psychology, 93, 1301-1313. https://doi.org/10.1037/a0012680 DOI: https://doi.org/10.1037/a0012680
Weiliang, E., Mun, L., Fong, T., & Yuan, Y. (2011). The effects of workforce diversity on employee performance in an organization. University Tunku Abdul Rahman, Malaysia.
Williams, K., & O'Reilly III, C. (1998). A review of 40 years of research. Research in Organizational Behavior, 20, 77-140.
Zgourides, G., John, L., & Watson, W. (2002). The influence of ethnic diversity on leadership, group process, and performance: examining learning teams. International Journal of Intercultural Relations 26(1), 1-16. https://doi.org/10.1016/S0147-1767(01)00032-3 DOI: https://doi.org/10.1016/S0147-1767(01)00032-3