Work Force Diversity and Its Impact on Organisational Performance

Abstract

Work force diversity has become an organisational imperative and as such, it is important for organisations to understand, embrace and manage diversity to be able to outperform competitors. Researchers have produced mixed result on the impact of diversity on performance. Some scholars found a positive relation between diversity factors and performance whilst others have found negative relations between diversity factors and performance. This paper therefore examines the effect of work force diversity factors (generational diversity, gender diversity, ethnic/racial diversity and educational diversity) on organisational performance. The study utilises secondary sources of data such as library resources and web based journals information for reviews and analyse from conceptual perspectives. In the study each of the aforementioned diversity factors are reviewed against organisational performance based on literature to confirm the veracity of the claims made by different scholars. The finding of the study revealed that, albeit the mixed results, most of the scholars found workforce diversity factors have a positive relationship with organisational performance. Albeit these findings, scholars agreed that managing a diverse workforce is a challenge for managers. Thus, the manner in which a diverse workforce is managed is a key determinant of the relationship between diversity and performance.