EFFECT OF EMPLOYEE DIVERSITY ON ORGANIZATIONAL PERFORMANCE (A STUDY OF NIGERIA BREWERIES PLC, AMA) ABSTRACT This research work examined Effect of Employee Diversity on Organizational Performance in Nigeria Breweries Plc, Ama. The objectives of the study include to: find out the effect of employee diversity on employee commitment, ascertain the relationship between employee diversity and employee productivity, determine extent employee diversity affects labour turnover and examine the relationship between employee diversity and skill transfer. The major instrument of data collection was the questionnaire. The sources of data were the primary and secondary sources. The population of the study was 262 while the sample size of 158 which was determined using the Taro Yamane’s formula. The data collected was presented in tables of frequencies and percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that employee diversity has positive effect on employees’ commitment in Nigeria Breweries Plc, employee diversity has significant relationship with employee productivity in Nigeria Breweries Plc, Ama, employee diversity positively affects labour turnover and employee diversity has significant relationship with skill transfer in Nigeria Breweries Plc, Ama. The researcher concluded that workforce diversity represents both a challenge and an opportunity for business and it was recommended that the management and leaders must not lose focus and interest in creating a diverse workforce due to the lack of immediate returns, because it eventually leads to employee commitment, managers of organization should always try to manage employee diversity because it leads to increase in productivity, management of organizations should also recognize and accept the differences in age, ethnicity, academic background etc. because it can help to reduce labour turnover and management of organizations should also be keen on managing diversity. TABLE OF CONTENTS CHAPTER ONE INTRODUCTION 1.1 Background of the Study 1.2 Statement of the Problem 1.3 Objectives of the Study 1.4 Research Questions 1.5 Statement of Hypotheses 1.6 Significance of the Study 1.7 Scope of the Study 1.8 Limitations of the Study 1.9 Operational definition of terms CHAPTER TWO REVIEW OF RELATED LITERATURE 2.1 Conceptual Framework 2.2 Theoretical Framework of the Study 2.3 Empirical Review 2.4 Summary of Review of Related Literature 2.5 Gap in the review of the related literature CHAPTER THREE METHODOLOGY 3.1 Research Design 3.2 Sources of Data 3.2.1 Primary Sources 3.2.2 Secondary Sources 3.3 Area of the Study 3.4 Population of the Study 3.5 Sample Size Determination 3.6 Instruments for Data Collection 3.7 Validity of the Instrument 3.8 Reliability of the Instrument 3.9 Method of Data Presentation and Analysis CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 4.1 Data Presentation and Analysis 4.2 Bio-Data 4.3 Data Relating To Research Questions 4.4 Test of Hypotheses 4.4.1 Test of Hypothesis One 4.4.2 Test of Hypothesis Two 4.4.3 Test of Hypothesis Three 4.4.4 Test of Hypothesis Four 4.5 Discussion of Findings 4.5.1 Discussion Based on Hypothesis One 4.5.2: Discussion Based on Hypothesis Two 4.5.3: Discussion Based on Hypothesis Three 4.5.4: Discussion Based on Hypothesis Four CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings 5.2 Conclusion 5.3 Recommendations 5.4 Contribution to Knowledge 5.5 Suggestions for further Research List of References Appendix A Appendix B CHAPTER ONE INTRODUCTION 1.1 Backgrounds of the Study The history of diversity could be traced back to 1776 when the united states of American got their independence. Then, the workforce was commonly seen as a white male environment (Tergson, 2010). Overtime, things started to change slowly because of different historical events. The abolishment of slavery and civil rights laws supported minorities joining the workforce and earning a stronger voice in the process. Masterson (2009), posits that some major points in history dramatically increased diversity in the workplace and they include, President Abraham Lincoln’s Emancipation proclamation in 1863, declaring the freedom of slaves. In 1913, Henry ford offered $5 a day to attract immigrants and African Americans. By 1916 ford’s employees represented 62 nationalities and more than 900 people with disabilities were employed. In 1917, women joined the workforce in great numbers, when American men went to war. In 1948, President Truman, integrated women into the military. In 1963, the equal pay Act was signed and in the same year, President Johnson, signed the civil rights Act, which prohibits discrimination in many aspects of employment. Employee diversity has been identified as one of the strategic capabilities that can add value to an organization, over their competitors (Sevaraj, 2015). But if properly managed, it could lead to positive result. Diversity issues are now considered important and are projected to become even more important in the future due to increasing differences in the population of many countries. Wise (2014), opines that diversity can be perceived as a double edged sword. Managing and valuing diversity is a key component of effective people management, which can improve workplace productivity. In the words of Robbins (2014), workforce diversity refers to organizations that are becoming more heterogeneous. With the mix of people in terms of gender, age, race, educational background etc. workforce diversity has important implications towards management practices and polices. Frequently, diversity is viewed in a limited fashion, primarily addressing issues of race or gender differences and linked to the laws providing protected status to certain groups, but it can also be viewed to encompass most characteristics that individuals posses that affect the way they think and do things. Furthermore, Williams (2014) stated that good quality decision can be made from a wider choice of alternatives. When the organization has a conductive environment for practicing workforce diversity, employees will enjoy all the positive benefits such as motivation, knowledge and skill transfer, creativity and better decision making and thus, they will become catalysts for the organization’s growth. On the other hand, if the workforce diversity is not handled correctly the formation of various groups will occur, this cloud lead to miscommunication, emotional conflicts, power struggle and ultimately to high turnover of employees. Today’s managers are responsible for both leading employees and responding to the needs of customers who are more ethnically and culturally diverse (Rainey 2013). Managers in both the public and the private sectors are focusing more attention on the issue of diversity. Whether the goal is to be an employee’s choice, to provide excellent customer service or to maintain a competitive edge, diversity is increasingly recognized and utilized as an important resource. To carol (2014), managers within organizations are primarily responsible for the success of diversity polices, because they must ensure that the polices are effective. Instead of treating every employee alike to recognizing and responding to those differences; it is a way to ensure employee retention and greater productivity. The management of many Nigeria organizations do not know how to effectively manage workforce diversity and this has crated conflict and uncertainty among the workers. We have witnessed situations where groups form in an organization based on ethnicity, religion, academic background etc. It is based on this backdrop that the research wants to examine effects of diversity on employee performance with Nigeria Breweries Plc, Ama as a case study 1.2 Statement of the problem. The effects of not managing employee diversity have many consequences on employee performance. It may lead to lack of commitment among the employees. This is because when diversity is not managed effectively it could lead to formation of groups. A group may feel marginalized and the members of that group will not be committed towards achieving organizational objectives. Furthermore, decline in productivity is another consequence of not managing employee diversity. This is because diversity could lead to conflict in an organization, as a result of the beliefs of different groups in the organization. Without harmony, the organization will experience decline in productivity. In addition, high rate of labour turnover could result in inability to manage employee diversity. This is because employee diversity could lead to power struggle, miscommunication and emotional conflict and ultimately result in high rate of labours Finally, inability to manage employee diversity has resulted in lack of creativity and skill transfer. This is because when thee exists conflict in an organization as a result of diversity it could stifle creativity and skill transfer. With the foregoing, it is pertinent to examine the effect of employee diversity on organizational performance. 1.3 Objectives of the Study. The general objective of the study was to examine the effects of employee diversity on organizational performance. However, the specific objectives include to: 1. find out the effect of employee diversity on employee commitment in Nigeria breweries Plc. Ama, Ninth mile corner Ngwo. 2. ascertain the relationship between employee diversity and employee productivity in Nigeria breweries Plc, Ama, Ninth mile corner Ngwo. 3. determine the extent employee diversity affects labour turnover in Nigeria Breweries Plc, Ama, Ninth Mile Corner Ngwo. 4. examine the relationship between employee diversity and skill transfer in Nigeria Breweries Plc, Ama, Ninth Mile Corner Ngwo. 1.4 Research Questions Based on the objectives of the study the following research questions were raised. 1. What is the effect of employee diversity on employee commitment in Nigeria Breweries Plc, Ama, Ninth mile corner Ngwo. 2. What is the relationship between employee diversity and employees productivity in Nigeria Breweries, Plc Ama, ninth mile corner Ngwo? 3. To what extent does employee diversity affect labour turnover in Nigeria Breweries Plc, Ama, Ninth Mile Corner Ngwo? 4. What is the relationship between employee diversity and skill transfer in Nigeria breweries Plc Ama, Ninth Mile Corner Ngwo? Statement of Hypotheses Based on the research questions, the following hypotheses were formulated. Hypothesis One Ho: Employee diversity commitment has no positive effect on employees’ commitment in Nigeria Breweries Plc, Ama, Ninth Mile Corner Ngwo. Hi: Employee diversity commitment has positive effect on employees’ commitment in Nigeria Breweries Plc, Ama, Ninth Mile Corner Ngwo. Hypothesis Two Ho: Employee diversity has no significant relationship with employee productivity in Nigeria Breweries, Plc, Ama, Ninth Mile Corner Ngwo. Hi: Employees’ diversity has a significant relationship with employee productivity in Nigeria Breweries Plc, Ama, Ninth Mile Corner Ngwo.
Hypothesis Three Ho: Employee diversity does not positively affect labour turnover in Nigeria Breweries, Plc, Ama, Ninth Mile Corner Ngwo. Hi: Employee diversity positively affects lablour turnover in Nigeria Breweries Plc, Ama Ninth Mile Corner Ngwo. Hypothesis Four Ho: Employee diversity has no significant relationship with skill transfer in Nigeria Breweries Plc, Ama Ninth Mile Corner Ngwo. Hi: Employee diversity has a significant relationship with skill transfer in Nigeria Breweries Plc, Ama, Ninth Mile Corner Ngwo. 1.5 Significance of the Study. This study will be beneficial to the management of organizations in Nigeria, because it will lead to reduction in conflict among workers, especially where there are workers from different ethnic groups, academic qualification, gender etc. The government will benefit because it will lead to achievement of organizational objectives and hence, economic development of the country. The researcher will benefit from this study, as it is a pre-requisite for the award of a Bachelor of Science (B.Sc) Degree in Business Administration. The university will benefit from this study because increase its data bank. The research work also serves as reference material for further researcher on this topic. 1.6 Scope of the Study This research work covered the effect of employee diversity on employees’ commitment, the relationship between diversity and employees’ productivity, the extent employee diversity affects labour turnover and the relationship between employee diversity and skill transfer in Nigeria breweries Plc, Ama, Ninth mile corner Ngwo. The period of the study was between 2011-2016. 1.7 Limitations of the Study. The researcher encountered some problems while carrying out this research work. The respondents found it difficult to give out some useful information. The researcher would have covered more than one organization, but because of time constraint, the research concentrated only on Nigeria breweries Plc, Ama. The researcher also had problem with collecting materials as the librarians refused to release the materials for photo copying. 1.9 Operational Definitions of Terms. Diversity: Diversity could be defined as understanding of individual differences and their unique way of doing things.. Employee Performance: This can be defined as the measurement of work of members of an organization against a preset know standard of accuracy, speed etc. Labour Turnover: Employee turnover has been defined as the rotation of workers around the labour market between organisations, jobs and occupations; and between the states of employment and unemployment. Productivity: Productivity denotes the actual ratios of input to output of any work organization.
EFFECT OF EMPLOYEE DIVERSITY ON ORGANIZATIONAL PERFORMANCE
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