INVESTIGATING THE EFFECTIVENESS OF DIVERSITY AND INCLUSION INITIATIVES IN ENHANCING ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The inclusion of a diverse range of employees is essential for an organization's prosperity. This includes a variety of characteristics among employees such as age, gender, race, ethnicity, and more. Barak (2022) state that diverse workforce can foster a more dynamic work environment by bringing in a multitude of perspectives. However, studies have indicated that organizational success, including heightened creativity, improved customer service, and increased profitability, is closely tied to employee diversity.

Many organization now prioritize employee diversity as a critical aspect of their operations. Employee diversity refers to the representation of different social groups, spanning age, gender, ethnicity, race, religion, sexual orientation, and disabilities, within a company. Similarly, diversity in the workplace can also help organizations better understand and serve a diverse customer base. Beyond that, organization recognize the potential advantages of having a diverse workforce, such as enhanced customer service, greater innovation, and a deeper understanding of customer preferences. However, the exact impact of staff diversity on organizational effectiveness remains somewhat uncertain. Diversity in an organization is the presence of members who differ and who share characteristics related to gender, age, race, culture, physical ability, and other factors (Saxena, 2020). Due to market competition for consumers, inputs, and capital, organizational performance is essential to the survival and profitability of the modern firm. 

Furthermore, managers often inquire about the impact of diversity and its management on organizational performance, seeking tangible evidence of their relationship (Jackson & Joshi, 2018). Over the past two decades, employers and management researchers have endeavored to enhance their comprehension of how workforce diversity influences organizations, teams, and employees (Jackson & Joshi, 2018). However, numerous empirical studies support the notion that the potential benefits of workplace diversity are not automatic (Godson, 2018). Some studies (Jackson, Joshi, & Erhardt, 2020; Webber & Donahue, 2019) indicate that different forms of diversity correlate with increased innovation, enhanced strategic decision-making, and improved organizational performance, while other research suggests that certain types of diversity within teams and organizations may lead to conflict, decreased social cohesion, and higher turnover (Jackson & Joshi, 2018). In addition, Cox (2019) also noted evidence suggesting that diversity may impact organizational processes such as communication, creativity, and problem-solving, all of which are closely tied to performance. However, Watson et al. (2018) highlighted the complexity in predicting the combined effects of ethnic and cultural diversity on group processes and performance based on existing research. Also, Richard (2020) conducted a study to gain deeper insight into the relationship between cultural diversity and firm effectiveness, finding that the positive influence of racial diversity on firm performance depends on contextual factors. Without considering context, a negative association between cultural diversity and organizational outcomes might arise.  One of the most important measures of every organization's health and success is its organizational performance. The importance of employee diversity is rising as more and more businesses realize the benefits of having a varied workforce. Diversity in the workplace can foster innovation and creativity by bringing in a range of viewpoints, experiences, and ideas (Rehman, 2019). Also, diverse team can also foster greater collaboration, less conflict, and better communication. All of this may result in higher output and better overall performance from the organization.Therefore, a survey will be conducted in order to investigate the effectiveness of diversity and inclusion initiatives in enhancing organizational performance.

1.2 Statement of the Problem

Diversity has emerged as a significant concern for organizations in contemporary times. The growing emphasis on fostering a diverse workforce has prompted many companies to actively cultivate a culture of diversity within their workplaces. Recognizing the potential benefits, organizations have realized that embracing diversity among employees can enhance overall performance and foster a more positive work environment. However, research has underscored that a diverse workforce not only reduces conflicts within the workplace but also cultivates a more harmonious atmosphere. Despite the potential advantages of employee diversity, organizations must also acknowledge potential drawbacks (Njide, 2018). Introducing diversity may incur additional costs, such as the need for supplementary training and resources. Moreover, it may also lead to interpersonal conflicts as employees navigate differences in communication and understanding stemming from diverse backgrounds and cultures (Kirton and Greene, 2021).

Ultimately, the decision to pursue employee diversity should be guided by an organization's specific needs and objectives. According to Lee (2019), a careful assessment of the potential costs and benefits is essential to determine the viability of such initiatives. Should organizations opt to pursue diversity, it is imperative to implement effective workforce management strategies and ensure equitable treatment and respect for all employees. Thus, it is in the light of these that the study seeks to investigate the effectiveness of diversity and inclusion initiatives in enhancing organizational performance.

1.3 Objectives of the Study

The main purpose of this study is to investigate the effectiveness of diversity and inclusion initiatives in enhancing organizational performance. Specifically, the study will;

Identify the diversity and inclusion initiatives adopted by organizations in Cameroon.

Assess the level of awareness and engagement of employees with diversity and inclusion programs within organizations in Cameroon.

Investigate the impact of diversity and inclusion initiatives on organizational performance.

1.4 Research Questions

The following questions have been prepared for the study:

What diversity and inclusion initiatives have organizations in Cameroon adopted?

How aware and engaged are employees with diversity and inclusion programs within organizations in Cameroon?

What is the impact of diversity and inclusion initiatives on organizational performance in Cameroon?

1.5 Research Hypotheses

Ho: There is no significant relationship between diversity and inclusion initiatives and organizational performance.

Ha: There is a significant relationship between diversity and inclusion initiatives and organizational performance.

1.6 Significance of the Study

This study is important because it examines diversity and inclusion programs in Cameroon's distinct sociocultural and economic environment. Organizations looking to use diversity as a strategic asset might benefit greatly from the research's findings of the contribution such initiatives make to organizational success. Also, comprehending the effects of diversity and inclusion on employee engagement, creativity, and decision-making procedures will assist organizations in customizing their guidelines and procedures to promote a more welcoming workplace. In the end, this may result in increased competition both within and outside of the Cameroonian market, greater organizational performance, and better personnel retention.

Furthermore, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the effectiveness of diversity and inclusion initiatives in enhancing organizational performance.

1.6 Scope of the study

The scope of this study is boarded on the effectiveness of diversity and inclusion initiatives in enhancing organizational performance. Empirically, this study will identify the diversity and inclusion initiatives adopted by organizations in Cameroon, assess the level of awareness and engagement of employees with diversity and inclusion programs within organizations in Cameroon and investigate the impact of diversity and inclusion initiatives on organizational performance.

Geographically, the study will be delimited to residents of Douala, Cameroon

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.8 Definition of Terms

Diversity: refers to the presence of a wide range of human differences within a group, organization, or community. These differences includes various dimensions such as race, ethnicity, gender, sexual orientation, age, socio-economic status, physical abilities, religious beliefs, political beliefs, and other characteristics (Li, 2018)

Inclusion initiatives: these are proactive measures taken by organizations to foster an environment where individuals from diverse backgrounds feel valued, respected, and included.

Organizational performance: is the effectiveness and efficiency with which an organization achieves its goals and objectives. It includes various aspects such as financial performance, operational efficiency, productivity, innovation, customer satisfaction, employee engagement, and overall competitiveness.