Is there Always a Positive Relationship Between Workplace Diversity and Organizational Performance, or Does Diversity Fatigue Imply a Suppressing Effect?

Abstract Performance of employees has been a vital matter for all organizations regardless of their sector. As organizations become more diverse, maintaining high performance becomes a challenge. This study examines the relationship between workforce diversity and organizational performance in educational sector of Cyprus through moderating effect of diversity fatigue. Mixed Method is used for the purposes of this study to analyze data from university academic staff, through survey and senior-level interviews (semi-structured). Qualitative measures were used to develop dimensions for diversity fatigue, which further were tested through quantitative approach. Results imply that extent of diversity fatigue can suppress the relationship between overall performance and workforce diversity, which is positive and significant prior to interaction of fatigue. Furthermore, our study expands the literature regarding the topic within educational sector. Managers can have an enhanced decision-making process regarding diverse workforce and degree of fatigue, which yields in a higher performance level for the firm.