Impact Of Workforce Diversity On Employee Performance At Sugar Man Health And Wellbeing Company

Theoretical frameworks related to workforce diversity and employee performance

The paper mainly focusses on Sugar Man Health and Wellbeing Company in order to identify the impact of diversity on the performance of the employees. The organization “Sugar Man Health and Wellbeing Company” is one of the leading and well-established healthcare recruitment service provider. The company is operating for around 30 years in both public as well as private sector of healthcare. With time, diversity has grown and expanded within the workforce of Sugar Man Health and Wellbeing Company (Sugarmanhealth.com, 2018).  As per the employees who generally engages in serving human resources plays a significant role in the organization and believes that diversified workforce generally bring positivity and much alternatives in order to achieve the goals of the organization. However, the team leaders of the organization stated that diversity is creating clashes as well as conflicts between the various team members. In order to identify the impact of diversity on the performance of the employees, a research was conducted. It is identified that number of journal articles are reviewed in order to undertake the research and for determining the impact of workforce diversity on the performance of the employees.

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The research objectives include:

  • To determine the impact of workforce diversity on the performance of employees in Sugar Man Health and Wellbeing Company
  • To establish steps that is needed by the organization for managing diversity
  • To ascertain the extent to which Gender level diversity ethnicity effects the job performance of the employees Sugar Man Health and Wellbeing Company

 The hypothesis includes:

Hypothesis 1:

  H0: Workforce diversity generally creates positive effect on the on the performance of employees in Sugar Man Health and Wellbeing Company

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H1: Workforce diversity generally creates negative effect on the on the performance of employees in Sugar Man Health and Wellbeing Company

Hypothesis 2:

H3: Gender diversity creates positive relationship with the performance of the employees

H4: Gender diversity creates genitive relationship with the performance of the employees

 The workforce diversity generally espouses various theoretical frameworks that generally help in examining the possible effects of workforce diversity. Terjesen, Couto and Francisco (2016) stated that categorization theory, which is the first theory helps in elaborating employees based, attributes like gender, ethnicity as well as age. Boehm, Kunze and Bruch (2014) argued that the second theory is mainly based on the attraction or similarity theory that is mainly dependent on different non-salient attributes like education and values, which further assists in enhancing the attachments as well as interpersonal attraction. The third theory is known as decision-making theory that helps in examining the effect of information distribution as well as on the expertise of different team members.

 Chapple and Humphrey (2014) opined that the theories on workforce diversity generally help in creating various types of contradictory hypothesis regarding the impact of diversity on various group performance as well as processes. They mainly argued that the theories of similarity as well as social categorization generally leads to the production of various types of negative effects including reduction in satisfaction, communication, commitment as well as in labour turnover. According to Hunt, Layton and Prince (2015), the third theory that is based on the perspective of decision-making helps in creating positive effect on workforce diversity. Thus, the organizations generally expect more diverse team in order to process various types of information differently for bringing out different types of viewpoints, which in turn can helps in creating creativity as well as enhanced performance (Shemla et al. 2016). It is found that the diverse workforce who belongs from various educational background and different ethnicity generally helps in creating opportunities for creative solutions as well as for generating innovation. The management of the organization is found to be diversified and thus they mainly works on the various effect of enhancing diversity as the key for assuring that it will be beneficial for the organization.

Relationship between ethnicity-based diversity and job performance of employees

 Various findings from the research by different scholars generally suggest that there are number of factor that can cause conflict, which is mainly provoked by different work-force diversity. Lu and Gursoy (2016) stated that identification of employees with various etic backgrounds could cause disruption within the group dynamics.  The theory of self-categorization further reflects that ethic identification within the organization generally creates disliking, competition as well as disruption when categorization exists within the organization (Kulik 2014). The study is mainly based on the first theory that is ethnicity, gender or age.

Alongside the development of various types of qualities, it is identified that ethnicity within the organization can create more support and joint effort in order to improve the performance of the business in order to fulfil the objectives of the organization (Van Iddekinge et al. 2016). However, the method for workforce structure mainly ends up with ethnicity, sexual orientation as well as age. The enhance of multi-ethnic groups within the business is generally due to enhancing increase in the norms of multicultural by the society that generally encompasses educational religion based as well as family based groups.

According to Cumming, Leung and Rui (2015), differences in the organization ethnic diversity is one of the good predictor of team scores which generally concluded that the benefit of having more ethically different views for solving the organizational problems can lead to increase in the performance of the team for gaining competitive advantage. However, growth in in the pressure group generally can leverage or minimize the problems. In addition to this, Ali, Ng and Kulik (2014) opined that ethnicity could be utilized as substitution aborted qualities and social foundation in ethnicity, which generally can depend upon for making different inventive execution. A concentrated level of workforce diversity can cause development however; high level of workforce diversity within the organization can create clashes and conflicts due to social gatherings.

 According to Trax, Brunow and Suedekum (2015) it is identified that ethnically diverse team within the organization generally helps in creating poor performance as compared to homogenous teams.  Both diversity as well as multiculturalism generally helps in creating less positive impact on the team performance and group performance. The workforce of the organization creates significant influence over the impact of diversity on the performance of the employees. Garcia-Meca et al. (2015) stated that ethnically diverse team generally have more innovation as well as creativity due to the learning opportunities and complementarities. Moderate ethnic diversity within the organization does create any impact on the organizational business including market share, profit as well as sales whereas if high level of ethnic diversity exists within the organization then it generally creates native impact on the business operation.

Impact of gender diversity on employee performance within an organization

 Gender based differences within the organization are generally justified as well as fortified by the various preferences as well as generalization that helps in discussing various types of positive attributes and hence higher quality of the males. Organizations generally have preferences for contracting male workforce as compared to female workforce as they should have better abilities as well as performance for managing their jobs. According to Rhode and Packel (2014), group that have mixed gender generally performs better as compared to the group that have same gender groups. It is depicted that positive impact of gender-based diversity on the organizational performance generally utilizes asset-based appraisals. The studies mainly identifies the effects of gender diversity can also create negative performance when the male individuals are taken in the sample. There must be proper level of gender-based diversity, which can give competitive advantage other different competitors for extensive level of gender-based diversity as well as for declining the organizational performance.

 A reversed U-shaped relationship between gender heterogeneity team to heterogeneous groups generally shows better performance of heterogeneity teams as well as compared to heterogeneous groups. Consequences of study generally reflect that upturned U-shaped connection between various organizational performance as well as gender composition. Wrench (2016) stated that gender diversity could demonstrate positive effect on the service and negative impact on the manufacturing as well as assembling business. Therefore, the service industry must take advantage with more gender diverse groups as compared to various commercial ventures who mainly engage in assembling as well as manufacturing business (Ferreira 2015). In this way, it is identified that high gender diversity can create much more constructive outcome on the employees as well as in the service industry as compared to manufacturing industry.

 Hence, adverse workforce diversity can cause lesser quality as it generally places less skilled and low performance people on job. According to Karin et al. (2014), a pragmatic evidence is generally provided which generally advocates negative impact on high-level diversity on various group function as well as organizational performance. The opponents of diversity model generally argues that costs of diversity is higher and they further advocate that diverse workforce within the organization generally cause inequality as well as injustice. It further creates clashes as well as conflicts among the team members and as a result, the performance of the organization will be hampered (De Leeuw, Lokshin and Duysters 2014). Due to that reasons, opponents of various diversity models have questioned the diversity impact on programs at the middle as well as lower level of business organizations.

Research objectives and hypotheses related to workforce diversity and employee performance

Lewis (2015) stated that research methodology is one of the process, which is mainly conducted for determining different processes as well as methods that are needed in the research.   In this paper, research methodology mainly deals with identification of the impact of workforce diversity on employee’s performance. The research methodology that is undertaken mainly constitutes research design, research philosophy and research design.

Research philosophy is mainly used for investigating the nature of knowledge in context to organizational diversity and its impact on the performance of the employees. According to Choy (2014), research philosophy is generally used in order to develop appropriate knowledge which are mainly associated with the research study. It generally comprises of different assumptions, which are generally needed in order to successfully carry the study. It is identified that research philosophy is mainly divided into three types, which includes realism, positivism, interpretivism.

In this research study, positivism is mainly used in order to proper collect data as well as information that are mainly associated with the research topic. Identification of the impact of diversity on employee’s performance needs proper research for getting appropriate data as well as information. It is identified that this method is mainly used in order to collect secondary data so that the errors, which are associated with the information, can be resolved or mitigated quite effectively.

  It is opined by Dumay and Cai (2015) that research approach is one of the method that generally assists in adopting a practical approach for achieving the goals as well as objectives of the research study successfully. Case studies are generally used as an example or strategy in order to investigate the impact of workforce diversity on the performance of the employees. It is identified that the research approach is mainly divided into inductive as well as deductive approach.

 In this research study, deductive approach s used so that the researchers will be able to analyse the impact of workforce diversity on the performance of the employees. It is found that inductive approach is not suitable for this particular research as there is no model, which can be used while undertaking the literature review.

According to McCusker and Gunaydin (2015), research design is defined as a plan which can be used in order to study the various issues that are mainly related with the research study. It is identified that research design generally assists in elaborating the type of study, which include descriptive as well as review. In addition to this, it is analysed that research design is one of the framework that assists in providing answers to various research questions. There are generally three main types of research design, which includes descriptive, exploratory as well as explanatory.

Factors that can cause conflicts and clashes in a diversified workforce

In this research study, it is identified that descriptive research method is used as it generally helps in providing proper theoretical framework in order to complete the research study. It assists in providing proper information about topic. The utilization of descriptive design helps in examining as well identifying techniques that useful in determining the impact of workforce diversity on the performance of the employees.

According to Riedl, Davis and Hevner (2014), data collection method is mainly referred as a process that helps in collecting as well as measuring different types of information on various targeted variables in a systematic fashion. The data as well as information that are gathered are used for taking proper decisions on the research study. It is found that data collection method is mainly used in order to obtain proper information as well as for keeping record which can be utilized in the future for further research. Data collection method is mainly categorized into primary data collection method and secondary data collection method.

  In this research study, secondary data collection method is mainly used that helps in identifying the impact of workforce diversity on the performance of the employees. Various types of journals, articles, and eBooks are considered as proper place in order to collect information about the impact of workforce diversity. It is identified that that journal articles assists in providing accurate information in order to conduct the research appropriately as well as effectively.

 The researchers generally follows number of rules as well as regulations while conducting the research. During the identification of workforce diversity on the performance of the employees, it is very much necessary for the researchers to maintain proper ethical considerations so that the entire research study can be completed successfully. The information as well as data, which are needed for analysing the impact of workforce diversity, must be kept very much secured. The people who are mainly related with the research must not be forced to work more beyond their desire.

References

Ali, M., Ng, Y.L. and Kulik, C.T., 2014. Board age and gender diversity: A test of competing linear and curvilinear predictions. Journal of Business Ethics, 125(3), pp.497-512.

Boehm, S.A., Kunze, F. and Bruch, H., 2014. Spotlight on age?diversity climate: The impact of age?inclusive HR practices on firm?level outcomes. Personnel Psychology, 67(3), pp.667-704.

Chapple, L. and Humphrey, J.E., 2014. Does board gender diversity have a financial impact? Evidence using stock portfolio performance. Journal of Business Ethics, 122(4), pp.709-723.

Positive effects of a diverse workforce on creativity and innovation

Choy, L.T., 2014. The strengths and weaknesses of research methodology: Comparison and complimentary between qualitative and quantitative approaches. IOSR Journal of Humanities and Social Science, 19(4), pp.99-104.

Cumming, D., Leung, T.Y. and Rui, O., 2015. Gender diversity and securities fraud. Academy of management Journal, 58(5), pp.1572-1593.

de Leeuw, T., Lokshin, B. and Duysters, G., 2014. Returns to alliance portfolio diversity: The relative effects of partner diversity on firm’s innovative performance and productivity. Journal of Business Research, 67(9), pp.1839-1849.

Dumay, J. and Cai, L., 2015. Using content analysis as a research methodology for investigating intellectual capital disclosure: a critique. Journal of Intellectual Capital, 16(1), pp.121-155.

Ferreira, D., 2015. Board diversity: Should we trust research to inform policy?. Corporate Governance: An International Review, 23(2), pp.108-111.

García-Meca, E., García-Sánchez, I.M. and Martínez-Ferrero, J., 2015. Board diversity and its effects on bank performance: An international analysis. Journal of Banking & Finance, 53, pp.202-214.

Hunt, V., Layton, D. and Prince, S., 2015. Diversity matters. McKinsey & Company, 1, pp.15-29.

Karin Andreassi, J., Lawter, L., Brockerhoff, M. and J. Rutigliano, P., 2014. Cultural impact of human resource practices on job satisfaction: A global study across 48 countries. Cross cultural management, 21(1), pp.55-77.

Kulik, C.T., 2014. Working below and above the line: the research–practice gap in diversity management. Human Resource Management Journal, 24(2), pp.129-144.

Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, 16(4), pp.473-475.

Lu, A.C.C. and Gursoy, D., 2016. Impact of job burnout on satisfaction and turnover intention: Do generational differences matter?. Journal of Hospitality & Tourism Research, 40(2), pp.210-235.

McCusker, K. and Gunaydin, S., 2015. Research using qualitative, quantitative or mixed methods and choice based on the research. Perfusion, 30(7), pp.537-542.

Rhode, D.L. and Packel, A.K., 2014. Diversity on corporate boards: How much difference does difference make. Del. J. Corp. L., 39, p.377.

Riedl, R., Davis, F.D. and Hevner, A.R., 2014. Towards a NeuroIS research methodology: intensifying the discussion on methods, tools, and measurement. Journal of the Association for Information Systems, 15(10), p.I.

Shemla, M., Meyer, B., Greer, L. and Jehn, K.A., 2016. A review of perceived diversity in teams: Does how members perceive their team’s composition affect team processes and outcomes?. Journal of Organizational Behavior, 37(S1).

Sugarmanhealth.com (2018). [online] sugarmanhealth.com. Available at: https://sugarmanhealth.com/ [Accessed 31 Mar. 2018].

Terjesen, S., Couto, E.B. and Francisco, P.M., 2016. Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity. Journal of Management & Governance, 20(3), pp.447-483.

Trax, M., Brunow, S. and Suedekum, J., 2015. Cultural diversity and plant-level productivity. Regional Science and Urban Economics, 53, pp.85-96..

Van Iddekinge, C.H., Lanivich, S.E., Roth, P.L. and Junco, E., 2016. Social media for selection? Validity and adverse impact potential of a Facebook-based assessment. Journal of Management, 42(7), pp.1811-1835.

Wrench, J., 2016. Diversity management and discrimination: Immigrants and ethnic minorities in the EU. Routledge.

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