Effect of Workforce Diversity on Organization Performance: The Case of Sandford International School
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Date
2021-09
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Addis Ababa University
Abstract
Workforce diversity is defined as a diverse group of people from various backgrounds, cultures, and ethnicities that work together in the same organization. Organizations have both obstacles and opportunities as a result of diversity. Within the organization, different aspects of diversity may have distinct effects and outcomes, therefore the impact of one cannot be generalized to the others. Accordingly, this study aims to examine the effect of workforce diversity on organizational performance at Sandford International School in Addis Ababa, Ethiopia. The path analysis model was used to evaluate three constructs or independent factors (gender, age, and culture) against one dependent variable (organizational performance) by mediating diversity management strategies. Primary data were collected from randomly selected employees of the school. The finding revealed that gender, age, and cultural diversity have a positive indirect effect on performance with a coefficient of 0.157,0.24 and 0.067 respectively and workforce diversity management strategy has a coefficient of 0.139, meaning that a change in diversity management will have a positive impact on organizational performance. organizational diversity management positively but indirectly affects organizational performance with diversity management strategies as a mediator in between. Since there are no other studies that dealt with the effect of workforce diversity on organizational performance with the mediating role of diversity management in the educational sector, and specifically within Ethiopia, this study established the indirect effect of workforce diversity on organizational performance for the first time. Finally, the researcher suggested that organizational managers and leaders should implement effective diversity management strategies to improve overall organizational performance
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Keywords
cultures, organization, opportunities