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The purpose of this paper is to examine the effects of workforce diversity on employee performance. The survey research design method was adopted for the paper. The instrument used to gather relevant data for the study was the questionnaire. The study centred on the Nigerian Banking Sector to examine the level of diversity practiced in terms of gender, age, ethnicity and educational in Nigerian Organizations. First Bank of Nigeria Plc, Ota, Ogun State was the focal organization. A total of 81 copies of questionnaire were disseminated to the respondents of the study and they were all filled and returned and also relevant for the study. In order to attain the research objectives, four hypotheses were created. The data were collated and analyzed using the Statistical Package for Social Sciences (SPSS) percentages and frequencies tables were used to for the descriptive aspects. To test the hypotheses, Spearman Rank Correlation Coefficient Analysis was adopted, Regression Model, Anova were adopted to examine the relationship between variables and identify the influence of the independent variables on the dependent variable. The limitation to the study is that the study made use of only few aspects of workforce diversity and as such, findings can not be generalized to cover other dimensions of diversity not covered in the study. The research findings showed all aspects of workforce diversity used in the study has a significant relationship with employee performance except for ethnic diversity. It was also discovered that gender, age and educational diversity have strong influence on employee performance. Hence, based on findings, it is recommended that management continue to uphold its diversity policies and practices in order to increase the benefits of diversity. Management should ensure that all employees are properly trained on diversity issues as these trainings will also help employees to change those unconscious behaviours that hinder diversity and inclusion practices. This study will add to the already existing literature on diversity and it will help First Bank, other organizations, employees, government and the society as a whole to fully understand diversity issues, how to manage it and how to reap the benefits.

Keywords: Workforce Diversity, Diversity Management and Employee Performance


Title page
Table of contents
List of Tables
List of Figure

1.0 Background to the Study
1.1 Statement of the Problem
1.2 Research Objectives
1.3 Research Questions
1.4 Research Hypotheses
1.5 Significance of the Study
1.6 Research Methodology
1.7 Scope of the Study
1.8 Limitation of the Study
1.9 Outline of the Chapters
1.10 Background Study of the Organization
1.11 Operationalization of Research Variable
1.12 Definition of Terms

2.0 Preamble
2.1 Conceptual Framework
2.1.1 Definition of Diversity Dimensions of Diversity Primary Dimension The Secondary Dimension Organizational Dimension
2.1.2 Factors Contributing to Increased Diversity within the Workplace
2.1.3 The Concept of Gender Diversity
2.1.4 The Concept of Age Diversity
2.1.5 Concept of Educational Background
2.1.6 Concept of Ethnic Diversity
2.1.7 Diversity Management Benefits of Diversity and Diversity Management Barriers to Effective Diversity Management HR Approach for Diversity Management Best Approaches for Managing Diversity
2.1.8 Concept of Employee Performance
2.2 Theoretical Framework
2.2.1 Similarity-Attraction Paradigm
2.2.2 Social Identity Theory
2.2.3 Social Categorization Theory
2.2.4 Human Capital Theory Explaining Age Diversity
2.2.5 Information and Decision Making Theory
2.3 Empirical Framework
2.3.1 Gender Diversity and Employee Performance
2.3.2 Age Diversity and Employee Performance
2.3.3 Ethnic Diversity and Employee Performance
2.3.4 Educational Background Diversity and Employee Performance
2.4 Gap in Literature

3.0 Preamble
3.1 Research Methods
3.2 Research Design
3.3       Population of the Study
3.4       Sampling Technique
3.5       Sampling Frame
3.6       Sample Size Determination
3.7       Data Collection Method
3.8       Research Instrument
3.9       Validity of Research Instrument
3.10     Reliability of Research Instrument
3.11     Measurement of Variables
3.12     Method of Data Analysis

4.0       Introduction
4.1       Data Presentation
4.2       Descriptive Analysis of Data and Interpretation
4.3.      Testing of Hypotheses

5.0 Introduction
5.1 Summary of Work
5.2 Findings
5.2.1 Theoretical Findings Social Identity Theory Social Categorization Theory Similarity Attraction Theory Human Capital Theory  Information and Decision Making Theory
5.2.2 Empirical Findings Relationship between Gender Diversity and Employee Effectiveness Relationship between Age Diversity and Employee Effectiveness Relationship between Ethnic Diversity and Employee Efficiency Relationship between Educational Diversity and Employee Efficiency
5.3       Recommendation
5.3.1    Implications to Management
5.4       Conclusion
5.5       Limitation of Study
5.6       Suggestion for Further Studies
5.7       Contribution to Knowledge



1.0         Background to the Study

The world’s increasing globalization needs a lot of interaction among people from various backgrounds than ever before. This is so because, individuals no longer live and work in narrow surroundings; as they are currently a part of a worldwide economy competing in nearly all part of the world (Patel, 2016). On these grounds, organizations are aiming to become more diversified in order to gain competitive advantage by becoming more creative, innovative and open to useful change.

Today business workplace is changing at an increased speed and the change in the employees’ demographics, increase of jobs in the economy, continuing growth of the globalization and requirement for efficient and effective collaboration have surfaced as significant forces driving the importance of diversity in organizations. With the increase of globalization and competition, the workforce in all industrialized countries has become progressively heterogeneous. Advances in technology and the advent of a worldwide economy have brought the people of the world existing in the same place, nearer to each other. Griffin & Moorhead (2014) pointed out that having a diverse workforce requires managers to identify and manage the varied attribute that exist among the employees in the organization. Therefore, businesses, educational systems and other entities are investigating ways to better serve their constituents to attract and retain the finest and most qualified employees (Gupta, 2013). On these grounds, organizations are aiming to become more diversified in order to gain competitive advantage by becoming more creative, innovative and open to useful change.

Workforce diversity refers to those significant differences and similarities that are present among employees within an organization (Griffin & Moorhead, 2014). Nwinami (2014) said it represent those uniqueness which includes; an individuals personality, age, gender, ethnicity/race, religion, marital status, income, the work experience and all those views which supposes and sustains an organizations core values. It also means those organizations that are turning out to be more varied with respect to it workforce composition based on characteristics as age, ethnicity, expertise, etc. (Robbins & Judge, 2013).

Human resource is an important asset for any organization, and as such, having a diversified workforce is a primary concern for most organizations. Although, it has become necessary for organizations to employ a diversified workforce, at the same time, it has become quite challenging for organizations with increasing diversified workforce to reap the benefits of diversity while managing its potentially disruptive effects (Kreitz, 2008) (Kreitz, 2008; Saxena, 2014). Organizations have recognized the fact that it is through the collective effort of its diversified workforce that monetary resources are harnessed to achieve organizational goals.
For organizations to reach its goals, the skills, knowledge, attitude and efforts of its workforce have to sharpened occasionally to optimize the effectiveness of its workforce and to enable them to meet greater challenges. Organizations are made up of individuals and without the workforce, organizations cannot achieve its goals (Mullins, 2010). For this reason, the management of its human resources is also a a crucial issue for organizational leaders (Saxena, 2014).

To be successful, it is imperative that organizational leaders understand just how the social work environment have an effect on the employees’ beliefs about work and they must have effective communication skills to be able to develop the self esteem and confidence in all its members (Griffin & Moorhead, 2014). Hence, to achieve and maintain competitive advantage over competitors, managers must be able to draw from the most valuable resources i.e. the competencies of its workers. Based on the growing richness of diversity in the world and in the workforce, managers have to spread out their outlook and use innovative approaches to achieve success.

1.1         Statement of the Problem

The work environment is becoming more complex due to globalization and competition which as a result has necessitated the need for a workforce that is made up of people with varying age, experience, knowledge and backgrounds to maximize competitive advantage (Ragins & Gonzalez, 2003). According to Childs (2005) organizations that wants to gain competitive advantage must widen its perspective about workforce diversity and diversity....

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