Impact of Diversity on Organization Performance

The assignment highlights the significance of diversity in an organization's performance. It emphasizes that a diverse workforce leads to better creativity, innovation, and problem-solving, ultimately affecting the organization's profitability. The document also touches upon the role of Human Resource (HR) management as a strategic partner, ensuring profitability, employee skills development, and financial support for departments. The assignment concludes with the importance of fair treatment in performance appraisal and suggests using productivity-based evaluations instead.

Impact of Diversity on Organization Performance 1
Impact of Diversity on Organization Performance
Name
Institution
Diversity means a range of different things and understands that make each individual unique. It
can be in terms of education, gender, age and ethnicity among others. It is about understanding
each other with tolerance and celebrating the dimensions of diversity within each individual.
First, age diversity plays a big role in an organizations performance. An organization whose
employees are youth between the age of eighteen to thirty five years experiences a better
performance compared to that with employees aged fifty five years old and above . The youth
are also very creative and innovative (Podsiadlowski, Gröschke, Kogler, Springer, &Van Der
Zee, 2013, pg 170). The youth are believed to be energetic so they do a lot of work and in the
right time thus high performances compared to old employees who tend to get tired easily hence
taking long time to finish the task assigned to them. This causes a decline to the organizations
performance.
Secondly, gender diversity, also affects the performance of an organization. An organization
whose high percentage of employees comprises of male experience relatively high production.
This is because they are aggressive and strong enough to work for long hours. Ethnic diversity
has been determined to be a significant factor in organizational performance. This applies to

Impact of Diversity on Organization Performance 2
organizations that operate in areas with many different tribes. The principle giveaways for ethnic
diversity to corporation are in terms of their value for decision-making, skills pool, creativity and
innovation, problem-solving, service and product quality and belonging among other aspects
critical for organizational performance (Nica, E., 2013, pg 179)
Educational diversity is also very crucial for a better performance in an organization. Educated
employees apply a lot of creativity and innovation in the processes of production thus improved
performance (Kunze, Boehm, & Bruch, 2011). They easily cope with new ideas and ready to
implement them for the good of the organization. To add on, they deal with their emotions
appropriately not to interfere with the company’s performance. In case of any conflict, they
handle it in the right manner until they reach a conscience. Educated managers know how
delegate duties to their juniors as the juniors receive the commands and adhere to them.
Human Resources (HR) as a strategic partner in an organization, shares goals and objectives with
others around the leadership. Making HR a strategic partner in an organisation or business is so
wonderful for various reasons. (Certo, S.C., 2018, n.p) To begin with, they ensure profitability is
attained. Making profit is one of the main reasons as to why an organization would start and run.
Secondly, he gains support for enhancing employee skills by ensuring that the employees are
taken for workshops and trainings in order to meet the expectations of the business. In this way,
he encourages improvement of productivity
Financing-as a strategic business partner, human resource management should ensure that each
department in the organisation has the required capital for facilitating the relevant human
resource activities like offering trainings to company employees, increasing the salary, which
strengthens the organisation and competitiveness in attracting and retaining valuable talent and

Impact of Diversity on Organization Performance 3
expertise (Backes-Gellner, Schneider, Veen, 2011 pg 1120). Without employees’ talent and
expertise, the business would not be able to produce quality products and reach their maximum
production levels.
Value-The value HR management brings to strategic planning is paramount in attaining
organization-wide goals. Ensuring that the strategic plans are implemented without the input of
human resource and employee being involved would be challenging. (Armstrong,Flood, Guthrie,
Liu, MacCurtain, & Mkamwa,2010 pg 997). Recognizing the value of HR management would
be crucial in developing business strategy, and putting the plans into action requires human
resources management’s progressive principles.
Evaluating what the business needs-HR business partners should also be able recruit enough and
qualified employees. In the recruitment process, HR should be keen on the qualities and other
necessities looking for to qualify.
Administrative services –HR is there to support people and ensure that rules and regulations are
implemented in the organization. It is also his work to be concerned about the employees’
payroll, insurance, leave and other accrued benefits Pitts, (Simons, &Rowland, 2011, pg 180). In
addition, they also provide the support for the movement of all administrative orders to their
respective offices by executive management relating to conduct and employee performance.
Decision Making –the HR should also take part in the decision making process in the organization
about human capital. HR try to improve strategic decision making process by providing unique
ideas relating to the connections between human capital and strategy, and by identifying the
main influencing points where human capital contributes most to strategic success.

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According to the case study, I strongly agree with the management that performance appraisal
should be discontinued (Pitts & Recascino Wise, 2010, pg 50). This is in regard to unfair
treatment or appraising of the employees. Only those who are close to the boss may end up been
highlighted as the best awaiting reward. The terms of awarding may also bring forth a conflict
amongst the workers in the organization .Like here we see three employees calling for a union to
insist for salary increment to be automatic to each employee but not used as a way of
rewarding .This idea raised alarm to the officers of the company. Being the HR manager, I would
ensure that salary increment would be automatic for each employee, and then use another way to
award like offering trips fully paid to them or awarding vouchers which they can use to purchase
goods. The appraisal system can also be checked in terms of productivity rather than filling
appraisal forms. They can be sent for fieldwork and bring feedback which can be used to
evaluate them openly and fairly. This can make all the employees to feel that there is fair
treatment and even be willing to appreciate the winner and put more effort to win next time.

Impact of Diversity on Organization Performance 5
References
Armstrong, C., Flood, P.C., Guthrie, J.P., Liu, W., MacCurtain, S. and Mkamwa, T., 2010. The
impact of diversity and equality management on firm performance: Beyond high performance
work systems. Human Resource Management, 49(6), pp.977-998.
Backes-Gellner, U., Schneider, M.R. and Veen, S., 2011. Effect of workforce age on quantitative
and qualitative organizational performance: Conceptual framework and case study evidence.
Organization Studies, 32(8), pp.1103-1121.
Certo, S.C., 2018. Supervision: Concepts and skill-building. McGraw-Hill Education.
Kunze, F., Boehm, S.A. and Bruch, H., 2011. Age diversity, age discrimination climate and
performance consequences—a cross organizational study. Journal of organizational behavior,
32(2), pp.264-290.
Podsiadlowski, A., Gröschke, D., Kogler, M., Springer, C. and Van Der Zee, K., 2013.
Managing a culturally diverse workforce: Diversity perspectives in organizations. International
Journal of Intercultural Relations, 37(2), pp.159-175.
Simons, S.M. and Rowland, K.N., 2011. Diversity and its impact on organizational performance:
The influence of diversity constructions on expectations and outcomes. Journal of technology
management & innovation, 6(3), pp.171-183.
Nica, E., 2013. Organizational culture in the public sector. Economics, Management and
Financial Markets, 8(2), p.179.

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Pitts, D.W. and Recascino Wise, L., 2010. Workforce diversity in the new millennium: Prospects
for research. Review of public personnel administration, 30(1), pp.44-69.