APPLIED BUSINESS RESEARCH 2: Workforce Diversity Impact Study

This research report investigates the impact of workforce diversity on the productivity of Australian organizations. It examines the role of diversity in influencing the workforce to achieve common goals, while also acknowledging potential negative impacts such as increased workplace conflict. The study utilizes an inductive approach, incorporating both primary and secondary data collection methods, including simple random sampling, and adheres to ethical considerations. The report addresses research questions concerning diversity management challenges, organizational practices for managing diverse employees, and the effects of employee diversity on profitability and productivity. The literature review explores various theories and studies, including diversity management competency models, job satisfaction theories, and the impact of diverse employees on creativity and teamwork. The report also discusses the challenges and obstacles that workforce diversity can create for firms, such as miscommunication and conflicts, and the practices that Australian firms employ to manage diversity, such as training and leadership development. The findings emphasize the importance of diversity for organizational performance, innovation, and catering to diverse markets.

Running head: APPLIED BUSINESS RESEARCH
The impact of workforce diversity on the productivity of the Australian organization

APPLIED BUSINESS RESEARCH 2
Abstract
The key purpose of this investigation is to address impact of workforce diversity on
organizational productivity in Australian organizations. This research report evaluated that
diversity plays a fundamental role to influence the workforce for performing the task with
each other on common goals and objectives. It is illustrated that workforce diversity can
negatively impact on Australian firm because sometimes it creates difficulties for a company
to manage the employees due to creating higher conflict among workforce at the workplace.
This research illustrated that the inductive approach would be used for generating theory
regarding research concerns. In addition, both primary and secondary data collection methods
will be used for collecting data. In addition to this, simple random sampling method will be
implemented to select a sample on a random basis. This investigation illustrated that ethical
consideration will be used to ethically complete investigation.

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Table of Contents
Abstract.................................................................................................................................................2
Research background.............................................................................................................................4
Research questions and research objectives...........................................................................................4
Literature review...................................................................................................................................5
Research design...................................................................................................................................12
Type of research..............................................................................................................................12
Research approach...........................................................................................................................12
Type of data.....................................................................................................................................13
Data collection methods..................................................................................................................13
Data analysis methods.....................................................................................................................14
Sampling plan..................................................................................................................................14
Ethical consideration...........................................................................................................................14
References...........................................................................................................................................16

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Research background
Workforce diversity entails the workforce, groups, people, and the community belongs to
diverse cultural background, religion, gender, age, language, abilities, education, and race. In
current times, it is becoming a strategy for a firm in order to hire different employees in order
to gain organizational productivity. Hence, the present study is conducted in terms of
comprehending the impact of workforce diversity on firm productivity of Australia. In this
research, the background of research, objectives and questions of investigation are evaluated
(Davis, Frolova, and Callahan, 2016). The study identifies that Australian firm creates
different practices for significant diverse management of employees. It could be identified
that in the nation of Australia, there are approximately 70% of companies who believed to
increase workforce diversity. Hence, workforce diversity facilitates chances to them in terms
of recruiting best talent within a firm in Australia (Dalton, D'Netto, and Bhanugopan, 2015).
In year of 2018, employees diversity upsurges regarding 50% revenues of the firm. An
investigator also depicted that workforce diversity can lead to gain organizational
productivity. The main cause is that each workforce is specialized in their field that supports
the company to facilitate sound judgments as well as, views related to the research concern.
An investigator has described that in the nation of Australia, there are 80% of company that
facilitates quality products as well as, increases the chance due to diverse employees
(Sharma, 2016).
Research questions and research objectives
Research Questions
RQ1: Discuss problems faced through firms in Australia about diversity management among
workforces?
RQ2: What practices do organizations apply for managing diverse employees?

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RQ3: What is effect of employees’ diversity on profitability and productivity of firms of
Australia?
Research Objectives
RO1: To analyse the concern faced by firms in managing diversity of workforces in
Australian
RO2: To address practices adopted through the firm for diversity management of employees
in efficient way
RO3: To investigate influence of diverse workforces on overall results of Australian firms.
Literature review
Davis Frolova and Callahan (2016) demonstrated about attitude and knowledge regarding the
workforce diversity management and combination of employee diversity management as well
as, its practices through executives of Australian firm is addressed. This theory identifies the
gap in such research through focusing on practices as well as, contemporary attitude
regarding employee diversity management within Australian firms. The developed theory
facilitates an initial experiential partnership among the executives and HR on the topic.
On the other side, Dalton D'Netto and Bhanugopan (2015) illustrated an authentic model in
this investigation that is alias as diversity management competency model that is relied on
thorough assessment of this investigation. This model included four quadrants such as
comprehend others, comprehend self, workplace assessment, and application of an
organization. This diversity model is implemented to address the concepts where executives
in firms feel that they are creating the capabilities of diversity management. The capabilities
create through managed are addressed in such model and that aids to manage diversity
significantly at the workplace.
As per view of Sharma (2016), a theory of job satisfaction could be created and religiosity
addressed that communication among employee desire and position of a company is

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associated with acceptance of workplace to satisfaction among religious. This theory creates
a significant impact on the satisfaction of the job. It also recommended that blacks have
obtained lower ratings through seniors as well as, felt less accepted at workplace. It has
higher inference regarding promotion and it may cause less satisfaction.
On the other side, Alhejji et al. (2016) identified that the assessment is highly instructive
whereas, illustrating the types of theory, results and the processes that are researched. There
is a high quantity of theories that are created in this research where one of a theory is
regarding multicultural competence theory. It is integrating the technique of study of the
survey as well as, group discussion. This theory has improved the individual competence
regarding culture. Such culture can enhance the awareness about cultural concerns.
Ang Rockstuhl and Tan (2015) addressed the impact of diverse employees on Australian
companies. By using this assessment, an investigator illustrates that workforce diversity can
lead to growth because of higher creativity that is due to the amount of diverse attitude.
Furthermore, firms in Australia manage brainstorming sessions that outcomes in gaining
competence of firm. An investigator has believed that a diverse workforce supports an
investigator to increase teamwork and revenue at the workplace. Australian firms manage
more cultural training session that aids in enhancing the loyalty between each other as well as
increases the harmonization. It is addressed that in year of 2017, most of the company
facilitates training to employees because of a higher difference in attitudes and behaviour of
employees.
In contrast to this, Barak (2016) stated that the investigation addressed that workforce
diversity develops different obstacles and hurdles for the firm. In the context of an Australian
firm, it is becoming an issue for managing the diversity among workforces in a significant
way. An investigator asserted that issue can create due to distinguishes in knowledge and
value philosophies among individuals. Hence, in Australia, a firm can recruit workforces

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from distinct nations such as Canada, US, and Nepal. Its consequences in gaining
disagreement and conflicts while workforces were not agreed regarding opinion of other
workforces. Moreover, research indicated that some firms earn losses because of complexity
in organizing these concerns within a firm of Australia.
According to Bendl et al. (2015), an investigator has illustrated that increasing diversity may
raise outflow of Australian firms since hiring several workforces at the workplace. It is
illustrated that due to higher rivalry in a dynamic atmosphere, each company can provide
more packages for recruiting competent workforces. The cost increases because of managing
training initiatives and other sessions for increasing the competencies of a firm in a specific
field. Hence, 40% of workforces can decline the efficiency within the Australian firm
because of diversity in groups and teams they are performing. An investigator addresses that
workforce diversity outcomes in gaining the miscommunication between workforces because
of diversity in behavior as well as, languages that observe distinct meanings of words.
On the other side, Dalton, D'Netto and Bhanugopan (2015) illustrated that non-verbal
communication increases the confusion as well as, ineffective outcomes in firm of Australia.
An investigator also addressed some workforces only perform in their comfort level that
declines the organizational productivity. The Australian firm uses different practices in terms
of managing the employees like providing training, hiring sound leadership as well as,
creating approaches and policies.
According to Davis Frolova and Callahan (2016) portrays that companies that workforces
more diverse employees are equally significant as firms that similar workforces. Under the
manufacturing company, diversity and productivity are more favorably related. Overall, there
is also no unfavorable relationship between productivity and diversity. It is identified that
diversity is improving organizational performance. When a firm wants to and experiments
recruiting the diverse employees, its efficiency and productivity are not at risk.

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On the other side, Ferdman and Deane (2014) illustrated that there is a linkage between
organizational performance and workforce diversity. It is also identified that failure to
organize diversity could lead to a higher turnover ratio as well as, gaining the expenses. A
diverse employee is competent to cater the culturally diverse market places. It also gains the
innovation and creativity as well as, illustrates the relationship among workforce diversity
and complex firm performance.
Kirton and Greene (2015) stated that workforce diversity is supportive of developing
innovation and creativity in an organization and sector that is the capital incentive. In the land
and labour-intensive field, the effect of cultural diversity is not highly deceptive. There is a
large number of companies that may benefit from socially diverse groups.
On the other side, Lindsey et al. (2015) opined about heterogeneity theory identified that
companies that have a distinct extent of cultural diversity experience can dissimilar to
dynamics as well as, firm results. In the context of culturally standardized groups, members
can tend to interact with one another and in a higher sort of manners that result in the group
attachments as well as, shared insights. This can improve group cohesion as well as,
subsequent organizational results. A significant topic of investigation is about group
diversity. It is a basis for development of workgroup. There are different organizational
groups like functional departments could be experiencing gender as well as, cultural diversity
as gaining a diversity of workforces may bring a diverse set of employees to companies. But,
an inflow of diverse employees does not certainly indicate that all company group would
accumulate in a distinct manner. There is discussion about group heterogeneity as well as,
social structure could be instructive. In contrast to this, it is identified that similarities in one
nominal parameter would endorse the social associations. In contrast to this, it is asserted that
an individual would relate not only to members of their own groups but also, the members
from other groups.

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Mathews (2015) asserted that an individual belongs to distinct social groups such as nation,
employer, and school. It estimates that an individual can sort themselves into recognized
groups as per the prominent features and that they act in concrete with their classes and favor
contexts which may affirm the group individuality. As a result, dissimilar individuals are less
possible to cooperate with another contrast to similar persons. In such a manner, social
categorization could disrupt expansion regarding task-relevant data due to possible partialities
with respect to group members and unfavourable biases with respect to out-group members.
It is theory related to self, social cognition, and group procedures that are emerged from the
investigation on social identity theory. It is associated with difference in self-classification in
content, level, as well as, meaning about self-categories. It emphasizes distinction among
social and personal recognition. Social-categorisation theory focuses on demonstrating
emergent and higher-order procedures related to group behaviour. It has more illustrated
changes in self-perception through self-categorization with respect to personal and social
identity.
On the other side, Sharma (2016) evaluated that effect and attraction theory identifies that
evaluation of an individual about another is an outcome of reinforcement related to others.
Attraction theory addresses that an individual like and are influenced to others who are
similar as compared to dissimilar to themselves. Social scientific investigation has offered
considerable assistance for tenets of theory because of the mid-1990s. In addition, theory
facilitates a thrifty explanatory as well as, predictive structure for assessing how and why
individuals are influenced to and persuaded by others in their social environments. Moreover,
feelings of individuals to be influenced by those who have homogenous attitudes, individuals
are influenced to others who can manifest the personality features that are comparable to their
own.

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Different investigators from different fields like political science, marketing, sociology, as
well as, social psychology have favoured to assumptions of attraction theory.
Furthermore, interactions that could be perceived to be discriminatory as per age, religion,
ethnicity, and gender could lead to unfavourable and harmful impact on the cohesiveness of
the team. The argument is that an individual of a similar background of religious, age-group,
gender, and ethnicity could incline to desire the work together because of their common
features thus improving group cohesiveness and performance.
According to Syed and Ozbilgin (2019), the Resource-Based View (RBV) theory identifies a
company consists of different resources i.e. of different classes like financial capital,
corporate capital, physical capital, and human capital. The attributes related to resources are
held by companies could contribute and determine their extent of performance. Resources
that permits a company for executing its strategies are illustrated as valuable and could be a
source for sustainable competitive benefit. In addition to this, a company should have
competency for fully feat the potential as well as, stock of its rare, valuable, as well as,
inimitable resources. These competencies and potential may reside in diverse features of its
employees.
In contrast to this, Rizwan et al. (2016) stated that workforce diversity could bring regarding
increasing productivity as well as, competitive benefits. Furthermore, employers can provide
different solutions to consumers due to innovative ideas as well as, procedures considered
into the firm. In addition to this, organizational diversity can gain morale of workforces as
well as, causes the workforce for desiring to work more significantly. Diversity in leadership
within a company permits managers for providing new competencies and techniques for
attaining unity within their teams.
De Meulenaere Boone and Buyl (2016) stated that job seekers are drawn to firms with
diverse employees since there is evidence that the firms do not practice discrimination of

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employment. Potential workforces want to understand that employers treat their employees
equally regardless of ethnicity, race, and gender. Not only are such companies competent to
influence new talent but they can retain current talent due to higher employee morale which
is the consequences of workforce diversity.
In contrast to this, Cho Kim and Mor Barak (2017) stated that workplace diversity enhances
mutual respect between workforces. Whether workforces work in a group and team included
co-workers with different working styles. It also considers incapable and who demonstrates
distinct cultures and generations as well as, synergistic working atmosphere becoming norms.
It is identified that idyllic atmosphere could be complex for attaining but employees
recognize the different strengths and talents in which, diversity is considered into workplaces
and they gain respect for their performance of colleagues.
Nabi and Nabi (2018) discussed that the significance of workplace diversity cannot be
overstated while it comes to the ability of a firm in terms of reaching the markets in foreign
nations. The appealing of international markets develop distinct kinds of chances for
workforces, development of workforces, as well as, opportunities for promotion. An
international environment opens the door for workforces of distinct ages, mental and physical
competencies, as well as, ethnic backgrounds for developing international profit centers.
Workforces are interested in learning about the multinational business approach and who are
accessible for possible emigrant tasks. It may address new as well as, challenging career
chances.
On the other side, Solanki and Saxena (2016) stated that a diverse organization provides
higher exposure to workforces from distinct cultures with varied backgrounds. Workforces
can learn through co-workers whose working styles may vary and whose attitudes regarding
work distinct with respect to their own. It is specifically valid for workforces within
multigenerational working atmospheres, and those who perform in atmospheres that are

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available to those with incapable. Traditional generation employees can learn advance
technology as well as, procedures through employees who falls under the tech-savvy
millennial generations.
Research design
Type of research
In the study, diverse kinds of study tools were practiced by the researcher to perform the
research which is known as a descriptive research tool, explanatory tool. The descriptive
research technique is used because this technique assists to researcher to get the conceptual
data towards investigation concern.
In this investigation, an investigator would choose the descriptive study tool because it would
enable in getting a reliable conclusion. Moreover, this tool assists the researcher to precise the
outcome of research and enables researcher to determine the relationship between dependent
as well as independent variables. Moreover, it is illustrated that the targeted research method
ate effectively in meeting the particular objectives as well as the aim at the specified time as
well as cost. Moreover, it is examined that the independent variable of this study workforce
diversity and independent productivity of the organization is a dependent factor. The
researcher is identified the connection between the organizational performance as well as
workforce diversity.
Research approach
It is a vital section of the research tool because it permits cause in choosing a particular
research procedure. The research strategy can be classified into two sections known as the
inductive and deductive method. The inductive approach is practiced by investigator to get
direct observations as well as creating conceptual information about the study issue. Apart
from this, the deductive strategy is used to create an effective research hypothesis. On the