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HUMAN RESOURCE DIVERSITY AND ORGANIZATIONAL OUTCOMES

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ABSTRACT

The study investigated effect of Human Resource Diversity on Organizational Outcomes and having MTN Nigeria Ltd as its case study. Descriptive Survey Technique was adopted in the study. Structured questionnaires were used for data collection, data collected were analyzed using the statistical tools of frequency counts and simple percentage for the demographic data while Chi-square (X2) test statistics was employed for the test of the stated hypotheses. The study was limited to a sample size of one hundred (100) respondents. Data analysis was undertaken at five percent (5%) level of significance. The outcomes of the findings showed that human resource diversity is positively related to organizational performances. The study recommended that organisation must ensure that diversity policies, processes, and procedures provide all employees the opportunity to participate in organisation’s mission accomplishments, and to compete fairly and equitably for career enhancement and advancement irrespective of individual differences and capabilities.

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study:

The human capital is one of the most important factors for any organization since it forms the engine that drives that organization. As the organization seeks to achieve its objectives, it requires people to manage or run the other factors of production. The workforce is becoming increasingly diverse. Many organizations, particularly multinationals, realize that diversity is an inevitable side effect of social changes, but a factor and reality, which can bring new perspectives and enhance the development of new products and services (Bedrnova andNovy, 2007; Rašticova and Senichev, 2011).

The world’s increasing globalization requires more interaction among people from diverse cultures, beliefs,and backgrounds than ever before. People no longer live and work in an insular marketplace; they are now part of a worldwide economy with competition coming from nearly every continent. For this reason, profit and non – profit organizations need diversity to become more creative and open to change. Maximizing and capitalizing on workplace diversity has become an important issue for management today (Green, Lopez, Wysocki and Kepner, 2012). In diverse workplace managers are dealing with individuals of different age, gender, nations, cultures, individuals who graduated from different universities and have different mental and physical skills, etc. all of these is just one of the results of the globalization process (Rašticova, Senichev, 2011).

Diversity Management is not only related to the human resource diversity management, but it is an important part of the company’s operations, long – term planning, strategic management, and it is as well one of the factors of survival in turbulent and uncertain future.

Diversity refers to the coexistence of employees from various socio-cultural backgrounds within the company. These includes their cultural factors such as race, gender, age, colour, physical ability, ethnicity e.t.c (Loden, 1996).

Diversity issues are now considered important and are projected to become even more important in the future due to increasing differences in the Nigerian population. Companies need to focus on diversity and look for ways to become totally inclusive organizations because diversity has the potential of yielding greater productivity and competitive advantages (SHRM, 1995). Managing and valuing diversity is a key component of effective people management, which can improve workplace productivity (Voorde, Paauwe and Veldhoven, 2010). Organizational outcomes of managing diversity on the other hand, are largely measured in terms of employees’ commitment, team spirit, sense of ownership, turnover and productivity (Idowu, 2012). It is on this foundation that this study seeks to explore the relationship between Human Resource Diversity (HRD) and Organizational Outcomes (OO).

1.2    Statement of the Problem:

Research on the impact of diversity on employee’s performance lends strong support to the contention that well managed workplace diversity increases employee’s productivity and industrial harmony. For example Voorde, Paauwe and Veldhoven (2010) suggests that unmanaged workplace diversity is most likely to impede group functioning and lead to ineffectiveness.

With the intent of maximizing profits and wealth for the business owners, many business managers/owners have given little or no thoughts to the issues of workforce diversity without minding its implications on organizational outcomes. With an extremely heterogeneous workforce in terms of race, ethnicity, culture, language, sexual orientation, religion, conceptions, business organizations face a very complex task to safeguard society or business organizations from potentially destructive conflicts that arise easily in a radically pluralistic or diverse organization.

Studies shows that organizations with high levels of well managed diversity are effective and steering ultimately producing corporate cultures that has new perspectives, pioneering capabilities and fresh ideas necessary to survive and improve employee’s productivity (Jackson, 2003; McKay and McDaniel, 2006).

An average Nigerian organisation is a collection of heterogeneous workforce comprising of different races, tribes, culture, religious beliefs, gender mix, age and different conceptions. The management of such organisation has the daunting task of insulating the organization from unmanaged workforce diversity which could actually do the opposite of what it promises, creating internal conflict and reducing organizational performance and effectiveness.

Also the inability of human resource managers and administrators to foster teamwork in organizations may lead to poor performance in organizations. Lack of teamwork between management and workers creates an environment of mistrust and could lead to grievances. It is against this backdrop that this study seeks to investigate the relationship between Human Resource Diversity and Organizational Outcomes with special references to MTN Nigeria Ltd.

1.3    Objectives of the Study:

The primary objective of this study is to examine the relationship between Human Resource Diversity Management and Organizational Outcomes. Other salient objectives include;

        i.            To explore the link between gender diversity and employee satisfaction

      ii.            To find out if ethnic differences has effect on employee turnover intention.

    iii.            To find out the effect of age diversity on employee commitment.

1.4    Research Questions:

As a guide to this study, the following research questions are put forward;

a.What is the link between gender diversity and employee satisfaction?

b.Do ethnic differences influence employee turnover intention?

c.Will age diversity affect employee commitment?

1.5    Research Hypotheses:

Presented below are formulated hypotheses to be tested in the study;

Hypotheses 1:

Ho:  There is no significant relationship between gender diversity and employee satisfaction.

Hi:   There is a significant relationship between gender diversity and employee satisfaction.

Hypotheses 2:

Ho:    Ethnic differences do not influence employee turnover intention

Hi:    Ethnic differences influence employee turnover intention

Hypotheses 3:

Ho:    There is no significant relationship between age diversity and employee commitment

Hi:    There is a significant relationship between age diversity and employee commitment


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