Impact Of Diversity On Organizational Performance

In the previous chapter the results from the data analysis has been discussed and also five different hypotheses were tested. The hypothesis was tested on the basis of the statistical results from the regression and correlation analysis. In the chapter the hypothesis will be explained further and also the previous literature on similar areas will also be compared. In the first section the results from the hypothesis has been explained followed the contribution of the research. Lastly the chapter has been concluded with limitation and future research scopes.

Null hypothesis: Diverse colleagues and the organizational performance are not significantly related.

Alternative hypothesis: Diverse colleagues and the organizational performance are significantly related.

As shown in the previous chapter the null hypothesis was rejected. This means that the diverse colleagues and the organizational performance are significantly related. However the regression coefficient was negative suggesting that increase in the diverse colleagues will decrease the organizational performance. This is because with increase in employees from diverse field the productivity may decline which will eventually decrease the organizational performance. However the previous researchers have found that the diverse colleagues in the organization positively affect the organizational performance. Study by (Mohammad & Alyahya 2013) argues that diversity in the workforce increase the customer base which eventually improves the revenue. Similarly another research by (Herring & Henderson 2015) states that diverse colleagues in the workplace creates cognitive and social work environment and promote creativity and innovation. So it can be said that diverse colleague helps to improve the organizational performance. The negative impact in the current research is may be due the sample included in the study and the factors used to define organizational performance are different as compared to previous researches(Simons & Rowland 2011).

Null hypothesis: There is no significant relationship between awareness about the diversity in the workplace and organizational performance.

Alternative hypothesis: There is no significant relationship between awareness about the diversity in the workplace and organizational performance.

On the basis of the regression results the null hypothesis was rejected and the alternative hypothesis was accepted.  So it can be concluded that the awareness about the diversity in the workplace is significantly related to the performance of the organization. This shows that if the employees in the organization are aware about the diversity in the workplace, this will help the employees to adjust in the diverse environment. If the employees are satisfied with the work environment their productivity will also increase. Most of the previous researches have focused on the awareness of the managers about the diverse workforce.  A recent research by (Fujimoto & Härtel 2017) argues that the senior employees should spend some time to understand the employee’s expectation from the organization and also about the problems they are facing in the organization. This will help to improve the employees’ engagement in the workplace which will positively affect the organizational performance. On the other hand research by (Phillips 2017) highlighted the issues related to discrimination in the workplace and argued that the managers play vital role in ensuring equality and creating awareness about diversity in the workplace.

Null hypothesis: There is a no relationship between age diversity and employees performance.

Alternative hypothesis: There is a no relationship between age diversity and employees performance.

This hypothesis was tested on the basis of the qualitative analysis and the results show that the diversity in the age of the employees in the workplace has positive impact on the organizational performance. Previous research has also shown similar results(Backes & Veen 2013; Backes-Gellner & Veen 2009). Most of the research on age diversity and organizational performance has argued that with diversity on age there is exchange of experience and new ideas among the old and the new employees in the workplace. Younger employees brings new techniques and the new methods to do the work whereas as the older employees have good knowledge about the organization and its working environment. So if employees from different work group help each other it will improve the overall performance of the organization. However some scholars have argued that with age diversity the problem of generation gap arises which may negatively affect the performance of the organization(Birkman 2016; Hayes 2013; Govitvatana 2001). So the impact of age diversity on the organizational performance depends on the co-ordination between the employees in different age group. If they co-ordinate and communicate properly this may help the organization whereas the lack of co-ordination may hamper the productivity. So the managers have an important role to play when there is age diversity in the workforce.

Null hypothesis: There is a no relationship between age diversity and organizational performance.

Alternative hypothesis: There is a relationship between age diversity and organizational performance.

This hypothesis is directly related to the previous hypothesis. The previous hypothesis shows the relationship between the age diversity and employee performance whereas this hypothesis test the relationship between the age diversity and organizational performance. Since the organizational performance is directly related to the performance of the employees, age diversity is also significantly related to the performance of the organization. Most of the previous research has not distinguished the impact on the age diversity on employee and organization performance. They have either focus only on employee performance or only on the organizational performance. So, in that sense this research is unique and contributes to fill the gaps in the literature. Majority of the researchers have raised the issue of generation gap while discussing about the age diversity in the organizational performance and only few researches have shown positive impact of generation gap organizational performance(Rizwan et al. 2016; WEILIANG et al. 2011; Mohammad & Alyahya 2013).

Null hypothesis: There is a no relationship between education background and organizational performance.

Alternative hypothesis: There is relationship between educational background and organizational performance.

Educational background has become one of the most important tool to measure the potential and the capability of employees. In other words education works as the signal in the market which helps the organizations to select the right person for the right job. Even though educational background is not the only factor which define the capability of the employee it has become one of the most important tool at least at initial level screening. Results from this research also shows that educational background is related to the organizational performance and higher educational level of the employee has higher productivity which increase the overall performance of the organization. This is because employees with higher education has more knowledge related to the field which helps in the decision making process. Most of the previous research on educational background and organizational performance has shown positive relationship. Whereas some scholars have argued that if the educational background is one same field as the requirements of the profile, only then the higher educational level helps. If the specialization is in different field the performance may be negatively affected(NG 2009; GÜRBÜZ 2007; Simons & Rowland 2011).

Diversity in the workplace has become common phenomenon in most of the organizations today.  Many organizations are not able to cope with such diversity and end of making losses or in worse case shut down the business. So the current research paper can be used by organizations to gain more knowledge about the diversity in workplace and its impact on performance of their organization. Similarly, organizations can prepare their strategies to deal with diverse workforce on the basis of results from the current research. The issue of age diversity and awareness about the diversity in the organization can be handled using the results from this research.

Apart from the practical contribution the current research also provides some useful insights for the research scholars. Any researcher can make use of this paper to know about the basic framework about the research. Also the process of proposing research objective and research question is also some important insight which can be used by other researchers. Similarly the use of various statistical tools and techniques such as regression and correlation analysis, questionnaire design, qualitative and quantitative research etc can be used by the other researchers.

In this research the sample size taken into consideration was not so large. A larger sample size may give more appropriate results which can be generalized in entire population. Similarly the variables taken into consideration are limited. There are many other variables which can be used to measure diversity in the workplace.  Similarly, only one variable is used to measure the organizational performance which can be improved. The tool and technique used in the research was also limited. Apart from these, there was limited related to time and cost involved in the research.

Future research can be conducted with larger sample size and with more number of variables. Similarly the same research can be extended in another region. One can also conduct similar research by taking different measures for organizational performance. Similarly future research can be conducted taking into consideration different industry and different techniques. 

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