Abera L.Tefera Kirubel2025-01-272025-01-272024-09-20https://etd.aau.edu.et/handle/123456789/4132The purpose of this study is to explore and understand the relationship between workforce diversity (including age, gender, ethnicity, and educational background) with individual performance and team effectiveness at Carolina Logistics Corporation. There has been limited research conducted in Ethiopia on this topic, especially within the logistic sector. Furthermore, little attention has been given to examining the impact of workforce diversity on team effectiveness through individual performance as a mediator, which ultimately contributes to overall organizational performance. The methodology was involve an explanatory research design using a total population census. Primary data were collected from 240 respondents through a structured questionnaire. The data were analysed using software packages such as SPSS version 26. Various statistical techniques including mean, standard deviation, correlation analysis, regression analysis, and analysis of variance were employed for data analysis.The findings indicate that diversity in gender, educational background, ethnicity, and age significantly influences both individual performance and team effectiveness. Gender, ethnicity and age diversity was found to have a positive direct effecton individual performance while education found to be insignificant on the other hand gender, education, ethnicity have a positive direct effect on team effectiveness while age diversity showed a negative effect on team effectiveness. However, these effects were mitigated through the enhancement of individual performance, emphasizing the importance of fostering individual capabilities within diverse teams. The research suggests that Carolina Logistics Corporation can benefit from targeted initiatives to enhance individual performance and leverage diversity for better team outcomes. Recommendations include adopting inclusive recruitment and leadership development strategies, promoting cultural competence, and creating a flexible work environment tailored to diverse employee needs. Continuous evaluation and adaptability training are also advised to optimize team dynamics and ensure sustained organizational growth.enThesis