RPRO6050: Assessing Diversity's Impact on Employee Performance

This report investigates the impact of workforce diversity on employee performance within Sugar Man Health and Wellbeing Company, a healthcare recruitment service provider. The research explores the relationship between ethnic and gender diversity with job performance, addressing concerns about potential conflicts arising from diversity. Through a literature review encompassing categorization theory, attraction-similarity theory, and decision-making theory, the report examines both positive and negative effects of diversity on employee satisfaction, communication, and overall organizational performance. The methodology employs a positivism research philosophy, utilizing secondary data to mitigate errors. Ultimately, the report seeks to determine the extent to which gender and ethnicity-based diversity influences job performance, aiming to provide insights for organizations seeking to manage diversity effectively. Desklib offers a platform for students to access similar reports and study tools.

Running head: IMPACT OF DIVERSITY ON EMPLOYEE’S PERFORMANCE
Topic- Impact of Diversity on Employees Performance
Name of the Student
Name of the University
Author’s Note

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IMPACT OF DIVERSITY ON EMPLOYEE’S PERFORMANCE
Table of Contents
1. Introduction............................................................................................................................2
1.1 Rationale..........................................................................................................................2
1.2. Research Question...........................................................................................................2
1.3 Objectives.........................................................................................................................3
1.4 Hypothesis........................................................................................................................3
2. Literature Review...................................................................................................................4
2.1 Workforce diversity and employees job performance.....................................................4
2.2 Ethnic diversity and employees job performances...........................................................5
2.3 Gender diversity and employees job performance...........................................................6
3. Research Methodology...........................................................................................................8
3.1 Method outline.................................................................................................................8
3.2 Research Philosophy........................................................................................................8
3.3 Research approach...........................................................................................................8
3.4 Research Design...............................................................................................................9
3.5 Data collection procedure................................................................................................9
3.6 Ethical considerations....................................................................................................10
References................................................................................................................................11

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1. Introduction
1.1 Rationale
The paper mainly focusses on Sugar Man Health and Wellbeing Company in order to
identify the impact of diversity on the performance of the employees. The organization
“Sugar Man Health and Wellbeing Company” is one of the leading and well-established
healthcare recruitment service provider. The company is operating for around 30 years in
both public as well as private sector of healthcare. With time, diversity has grown and
expanded within the workforce of Sugar Man Health and Wellbeing Company
(Sugarmanhealth.com, 2018). As per the employees who generally engages in serving
human resources plays a significant role in the organization and believes that diversified
workforce generally bring positivity and much alternatives in order to achieve the goals of the
organization. However, the team leaders of the organization stated that diversity is creating
clashes as well as conflicts between the various team members. In order to identify the impact
of diversity on the performance of the employees, a research was conducted. It is identified
that number of journal articles are reviewed in order to undertake the research and for
determining the impact of workforce diversity on the performance of the employees.
1.2. Research Question
The research questions are as follows:
 What is the impact of workforce diversity on the performance of employees in
Sugar Man Health and Wellbeing Company?
 What is the relationship between ethnicity based diversity with job performance
of employees?
 Does gender base affect the performance of the employees within organization?

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1.3 Objectives
The research objectives include:
 To determine the impact of workforce diversity on the performance of employees
in Sugar Man Health and Wellbeing Company
 To establish steps that is needed by the organization for managing diversity
 To ascertain the extent to which Gender level diversity ethnicity effects the job
performance of the employees Sugar Man Health and Wellbeing Company
1.4 Hypothesis
The hypothesis includes:
Hypothesis 1:
H0: Workforce diversity generally creates positive effect on the on the performance
of employees in Sugar Man Health and Wellbeing Company
H1: Workforce diversity generally creates negative effect on the on the performance
of employees in Sugar Man Health and Wellbeing Company
Hypothesis 2:
H3: Gender diversity creates positive relationship with the performance of the
employees
H4: Gender diversity creates genitive relationship with the performance of the
employees

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2. Literature Review
2.1 Workforce diversity and employees job performance
The workforce diversity generally espouses various theoretical frameworks that
generally help in examining the possible effects of workforce diversity. Terjesen, Couto and
Francisco (2016) stated that categorization theory, which is the first theory helps in
elaborating employees based, attributes like gender, ethnicity as well as age. Boehm, Kunze
and Bruch (2014) argued that the second theory is mainly based on the attraction or similarity
theory that is mainly dependent on different non-salient attributes like education and values,
which further assists in enhancing the attachments as well as interpersonal attraction. The
third theory is known as decision-making theory that helps in examining the effect of
information distribution as well as on the expertise of different team members.
Chapple and Humphrey (2014) opined that the theories on workforce diversity
generally help in creating various types of contradictory hypothesis regarding the impact of
diversity on various group performance as well as processes. They mainly argued that the
theories of similarity as well as social categorization generally leads to the production of
various types of negative effects including reduction in satisfaction, communication,
commitment as well as in labour turnover. According to Hunt, Layton and Prince (2015), the
third theory that is based on the perspective of decision-making helps in creating positive
effect on workforce diversity. Thus, the organizations generally expect more diverse team in
order to process various types of information differently for bringing out different types of
viewpoints, which in turn can helps in creating creativity as well as enhanced performance
(Shemla et al. 2016). It is found that the diverse workforce who belongs from various
educational background and different ethnicity generally helps in creating opportunities for
creative solutions as well as for generating innovation. The management of the organization

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is found to be diversified and thus they mainly works on the various effect of enhancing
diversity as the key for assuring that it will be beneficial for the organization.
Various findings from the research by different scholars generally suggest that there
are number of factor that can cause conflict, which is mainly provoked by different work-
force diversity. Lu and Gursoy (2016) stated that identification of employees with various
etic backgrounds could cause disruption within the group dynamics. The theory of self-
categorization further reflects that ethic identification within the organization generally
creates disliking, competition as well as disruption when categorization exists within the
organization (Kulik 2014). The study is mainly based on the first theory that is ethnicity,
gender or age.
2.2 Ethnic diversity and employees job performances
Alongside the development of various types of qualities, it is identified that ethnicity
within the organization can create more support and joint effort in order to improve the
performance of the business in order to fulfil the objectives of the organization (Van
Iddekinge et al. 2016). However, the method for workforce structure mainly ends up with
ethnicity, sexual orientation as well as age. The enhance of multi-ethnic groups within the
business is generally due to enhancing increase in the norms of multicultural by the society
that generally encompasses educational religion based as well as family based groups.
According to Cumming, Leung and Rui (2015), differences in the organization ethnic
diversity is one of the good predictor of team scores which generally concluded that the
benefit of having more ethically different views for solving the organizational problems can
lead to increase in the performance of the team for gaining competitive advantage. However,
growth in in the pressure group generally can leverage or minimize the problems. In addition
to this, Ali, Ng and Kulik (2014) opined that ethnicity could be utilized as substitution

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aborted qualities and social foundation in ethnicity, which generally can depend upon for
making different inventive execution. A concentrated level of workforce diversity can cause
development however; high level of workforce diversity within the organization can create
clashes and conflicts due to social gatherings.
According to Trax, Brunow and Suedekum (2015) it is identified that ethnically
diverse team within the organization generally helps in creating poor performance as
compared to homogenous teams. Both diversity as well as multiculturalism generally helps
in creating less positive impact on the team performance and group performance. The
workforce of the organization creates significant influence over the impact of diversity on the
performance of the employees. Garcia-Meca et al. (2015) stated that ethnically diverse team
generally have more innovation as well as creativity due to the learning opportunities and
complementarities. Moderate ethnic diversity within the organization does create any impact
on the organizational business including market share, profit as well as sales whereas if high
level of ethnic diversity exists within the organization then it generally creates native impact
on the business operation.
2.3 Gender diversity and employees job performance
Gender based differences within the organization are generally justified as well as
fortified by the various preferences as well as generalization that helps in discussing various
types of positive attributes and hence higher quality of the males. Organizations generally
have preferences for contracting male workforce as compared to female workforce as they
should have better abilities as well as performance for managing their jobs. According to
Rhode and Packel (2014), group that have mixed gender generally performs better as
compared to the group that have same gender groups. It is depicted that positive impact of
gender-based diversity on the organizational performance generally utilizes asset-based
appraisals. The studies mainly identifies the effects of gender diversity can also create

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negative performance when the male individuals are taken in the sample. There must be
proper level of gender-based diversity, which can give competitive advantage other different
competitors for extensive level of gender-based diversity as well as for declining the
organizational performance.
A reversed U-shaped relationship between gender heterogeneity team to
heterogeneous groups generally shows better performance of heterogeneity teams as well as
compared to heterogeneous groups. Consequences of study generally reflect that upturned U-
shaped connection between various organizational performance as well as gender
composition. Wrench (2016) stated that gender diversity could demonstrate positive effect on
the service and negative impact on the manufacturing as well as assembling business.
Therefore, the service industry must take advantage with more gender diverse groups as
compared to various commercial ventures who mainly engage in assembling as well as
manufacturing business (Ferreira 2015). In this way, it is identified that high gender diversity
can create much more constructive outcome on the employees as well as in the service
industry as compared to manufacturing industry.
Hence, adverse workforce diversity can cause lesser quality as it generally places less
skilled and low performance people on job. According to Karin et al. (2014), a pragmatic
evidence is generally provided which generally advocates negative impact on high-level
diversity on various group function as well as organizational performance. The opponents of
diversity model generally argues that costs of diversity is higher and they further advocate
that diverse workforce within the organization generally cause inequality as well as injustice.
It further creates clashes as well as conflicts among the team members and as a result, the
performance of the organization will be hampered (De Leeuw, Lokshin and Duysters 2014).
Due to that reasons, opponents of various diversity models have questioned the diversity
impact on programs at the middle as well as lower level of business organizations.

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3. Research Methodology
3.1 Method outline
Lewis (2015) stated that research methodology is one of the process, which is mainly
conducted for determining different processes as well as methods that are needed in the
research. In this paper, research methodology mainly deals with identification of the impact
of workforce diversity on employee’s performance. The research methodology that is
undertaken mainly constitutes research design, research philosophy and research design.
3.2 Research Philosophy
Research philosophy is mainly used for investigating the nature of knowledge in
context to organizational diversity and its impact on the performance of the employees.
According to Choy (2014), research philosophy is generally used in order to develop
appropriate knowledge which are mainly associated with the research study. It generally
comprises of different assumptions, which are generally needed in order to successfully carry
the study. It is identified that research philosophy is mainly divided into three types, which
includes realism, positivism, interpretivism.
In this research study, positivism is mainly used in order to proper collect data as well
as information that are mainly associated with the research topic. Identification of the impact
of diversity on employee’s performance needs proper research for getting appropriate data as
well as information. It is identified that this method is mainly used in order to collect
secondary data so that the errors, which are associated with the information, can be resolved
or mitigated quite effectively.
3.3 Research approach
It is opined by Dumay and Cai (2015) that research approach is one of the method that
generally assists in adopting a practical approach for achieving the goals as well as objectives

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of the research study successfully. Case studies are generally used as an example or strategy
in order to investigate the impact of workforce diversity on the performance of the
employees. It is identified that the research approach is mainly divided into inductive as well
as deductive approach.
In this research study, deductive approach s used so that the researchers will be able
to analyse the impact of workforce diversity on the performance of the employees. It is found
that inductive approach is not suitable for this particular research as there is no model, which
can be used while undertaking the literature review.
3.4 Research Design
According to McCusker and Gunaydin (2015), research design is defined as a plan
which can be used in order to study the various issues that are mainly related with the
research study. It is identified that research design generally assists in elaborating the type of
study, which include descriptive as well as review. In addition to this, it is analysed that
research design is one of the framework that assists in providing answers to various research
questions. There are generally three main types of research design, which includes
descriptive, exploratory as well as explanatory.
In this research study, it is identified that descriptive research method is used as it
generally helps in providing proper theoretical framework in order to complete the research
study. It assists in providing proper information about topic. The utilization of descriptive
design helps in examining as well identifying techniques that useful in determining the
impact of workforce diversity on the performance of the employees.
3.5 Data collection procedure
According to Riedl, Davis and Hevner (2014), data collection method is mainly
referred as a process that helps in collecting as well as measuring different types of

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information on various targeted variables in a systematic fashion. The data as well as
information that are gathered are used for taking proper decisions on the research study. It is
found that data collection method is mainly used in order to obtain proper information as well
as for keeping record which can be utilized in the future for further research. Data collection
method is mainly categorized into primary data collection method and secondary data
collection method.
In this research study, secondary data collection method is mainly used that helps in
identifying the impact of workforce diversity on the performance of the employees. Various
types of journals, articles, and eBooks are considered as proper place in order to collect
information about the impact of workforce diversity. It is identified that that journal articles
assists in providing accurate information in order to conduct the research appropriately as
well as effectively.
3.6 Ethical considerations
The researchers generally follows number of rules as well as regulations while
conducting the research. During the identification of workforce diversity on the performance
of the employees, it is very much necessary for the researchers to maintain proper ethical
considerations so that the entire research study can be completed successfully. The
information as well as data, which are needed for analysing the impact of workforce
diversity, must be kept very much secured. The people who are mainly related with the
research must not be forced to work more beyond their desire.

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References
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linear and curvilinear predictions. Journal of Business Ethics, 125(3), pp.497-512.
Boehm, S.A., Kunze, F. and Bruch, H., 2014. Spotlight on age‐diversity climate: The impact
of age‐inclusive HR practices on firm‐level outcomes. Personnel Psychology, 67(3), pp.667-
704.
Chapple, L. and Humphrey, J.E., 2014. Does board gender diversity have a financial impact?
Evidence using stock portfolio performance. Journal of Business Ethics, 122(4), pp.709-723.
Choy, L.T., 2014. The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of Humanities
and Social Science, 19(4), pp.99-104.
Cumming, D., Leung, T.Y. and Rui, O., 2015. Gender diversity and securities
fraud. Academy of management Journal, 58(5), pp.1572-1593.
de Leeuw, T., Lokshin, B. and Duysters, G., 2014. Returns to alliance portfolio diversity: The
relative effects of partner diversity on firm's innovative performance and
productivity. Journal of Business Research, 67(9), pp.1839-1849.
Dumay, J. and Cai, L., 2015. Using content analysis as a research methodology for
investigating intellectual capital disclosure: a critique. Journal of Intellectual Capital, 16(1),
pp.121-155.
Ferreira, D., 2015. Board diversity: Should we trust research to inform policy?. Corporate
Governance: An International Review, 23(2), pp.108-111.