Share:


Тhe effects of diversity management and inclusion on organisational outcomes: a case of multinational corporation

    Folakemi Ohunakin Affiliation
    ; Anthonia Adeniji Affiliation
    ; Olaleke Oluseye Ogunnaike Affiliation
    ; Friday Igbadume Affiliation
    ; Dayo Idowu Akintayo Affiliation

Abstract

This article provides an empirical study on effects of diversity management and inclusion on organisational outcomes. The importance of diversity management and inclusion on organisation is of immense benefit especially in a Multinational Corporations, where diversity and inclusion are parts of their core values. However, in our context, which had been identified as the most diverse country in Africa, there is need to establish how the management and inclusion of these diverse workforce would benefit organisational activities, coupled with the fact that, there is dearth of research on these constructs in extant literature. This study investigated the effects of diversity management and inclusion on organisational outcomes (job satisfaction and job performance) among Shell Corporation employees. Pen and paper questionnaire of 384 copies were administered to the Lagos Branch employees of Shell Corporation. Cross-sectional research design was adopted. Confirmatory Factor Analysis (CFA), convergent and divergent validity, correlational analysis, and structural equation model were used for the analysis. The findings showed positive effect of diversity management and inclusion on employees’ job satisfaction and employees’ job performance. It implies that diversity management and inclusion have the potentials of assisting organisation in creating a climate in which employee will like to work harder with readiness to continue to work with the organisation.

Keyword : diversity management, inclusion, job satisfaction, job performance, Shell Corporation, Nigeria

How to Cite
Ohunakin, F., Adeniji, A., Ogunnaike, O. O., Igbadume, F., & Akintayo, D. I. (2019). Тhe effects of diversity management and inclusion on organisational outcomes: a case of multinational corporation. Business: Theory and Practice, 20, 93-102. https://doi.org/10.3846/btp.2019.09
Published in Issue
Mar 6, 2019
Abstract Views
5146
PDF Downloads
6172
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Adeleye I, Aja-Nwachukwu F, Fawehinmi F (2012) Managing diversity in Nigeria: “The Chevron Way”. Human Resource Management Journal: Journal of the CIPMN 4 (1): 1-13.

Acquavita SP, Pittman J, Gibbons M, Castellanos-Brown K (2009) Personal and organizational diversity factors’ impact on social workers’ job satisfaction: Results from a national Internet-based survey. Administration in Social Work 33: 151-166. https://doi.org/10.1080/03643100902768824

April K, Blass E (2010) Measuring diversity practice and develo-ping inclusion. Dimensions 1 (1): 59-66.

Asif M, Choudhry AI, Akhter SA, IIyas MA, Lee G (2011) Diver-sity management’s effect on job satisfaction and workgroup performance of government sector employees. Interdiscipli-nary Journal of Comtemporary Research in Business 3 (2): 533-539.

Bagozzi R, Yi Y (1989) On the use of structural equation models in experimental designs. Journal of Marketing Research 26: 271-284. https://doi.org/10.1177/002224378902600302

Buckingham C (2010) A case study exploring the impact of mana-ging workplace diversity on diversity awareness and employee job satisfaction. PhD Thesis, Capela University. Published by ProQuest LLC. UMI Number: 3387665.

Campbell DG (2011) Diversity and job satisfaction: reconciling conflicting theories and findings. International Journal of Applied Management and Technology 10 (1): 1-15.

Campbell JP, McCloy RA, Oppler SH, Sager CE (1993) A theory of performance. In: Schmitt N and Borman WC (Eds) Personnel selection in organizations. Jossey-Bass, San Francisco, 3570.

Campbell JP, McHenry JJ, Wise LL (1990) Modeling job perfor-mance in a population of jobs. Personnel Psychology 43 (2): 313-333. https://doi.org/10.1111/j.1744-6570.1990.tb01561.x

Castellacci F, Viñas-Bardolet C (2019) Internet use and job satis-faction. Computer in Human Behaviour 90: 141152. https://doi.org/10.1016/j.chb.2018.09.001

Choi S (2017) Workforce diversity and job satisfaction of the majority and the minority: analyzing the asymmetrical effects of relational demography on whites and racial/ ethnic minorities. Review of Public Personnel Administration 37 (1): 84-107. https://doi.org/10.1177/0734371X15623617

Chen P, Choi Y (2008) Generational differences in work values: a study of hospitality management.International Journal of Contemporary Hospitality Management 20 (6): 595-615. https://doi.org/10.1108/09596110810892182

Cho S, Barak MEM (2008) Understanding of diversity and inclu-sion in a perceived homogeneous culture: a study of organi-zational commitment and job performance among Korean employees. Administration in Social Work 32 (4): 100-126. https://doi.org/10.1080/03643100802293865

Darwin JR, Palanisamy CS (2015) the effects of work force di-versity on employee performance in Singapore organisations. International Journal of Business Administration 6 (2): 17-29.

DeFrank RS, Ivancevich JM (1998) Stress on the job: An executive update. The Academy of Management Executive 12 (3): 55-66.

Demirel Y, Seckin Z, Yucel I (2012) Comparative study on the relationship between the management of diversity and job satisfaction. Interdisciplinary Journal Research in Business 2 (7): 12-25.

Denison DR (1990) Corporate culture and organizational effecti-veness. New York: John Wiley & Sons.

Dilig-Ruiz A, MacDonald I, Varin MD, Vandyk A, Graham ID, Squires JE (2018) Job satisfaction among critical care nurses: A systematic review. International Journal of Nursing Studies 88: 123-134. https://doi.org/10.1016/j.ijnurstu.2018.08.014

Downey SN, Werff L, Thomas KM, Plaut VC (2015) The role of diversity practices and inclusion in promoting trust and em-ployee engagement. Applied Social Psychology, 1-10. https://doi.org/10.1111/jasp.12273

Ely RJ (2004) A field study of group diversity, participation in diversity education programs, and performance. Journal of Organisational Behaviour 25 (6): 755-780. https://doi.org/10.1002/job.268

Findler L, Wind LH, Barak MEM (2007) The challenge of workforce management in a global society: modeling the re-lationship between diversity, inclusion, organizational culture, and employee well-being, job satisfaction and organizational commitment. Administration in Social Work 31 (3): 63-94. https://doi.org/10.1300/J147v31n03_05

Fornell C, Larcker DF (1981) Evaluating structural equations with unobservable variables and measurement error. Journal of Marketing Research (18): 39-50. https://doi.org/10.1177/002224378101800104

Hanappi-Egger E (2012) Theoretical perspectives on diversity in organisation. In: Danowitz MA, Hanappi-Egger, Mensi-Klar-bach H (Eds) Diversity in organisations: Palgrave Macmillan.

Hwang J, Hopkins KM (2015) A structural equation model of the effects of diversity characterisitcs and inclusion on orga-nizational outcomes in the child welfare workforce. Children and Youth Service Review 50: 44-52. https://doi.org/10.1016/j.childyouth.2015.01.012

Ikeije U, Lekan-Akomolafe C (2015) Employees diversity and inclusion: a paradigm shift in organizational management. European Journal of Business and Management 7 (14): 34-39.

Jayne MEA, Dipboye RL (2004) Leveraging diversity to improve business performance: research findings and recommendations for organisations. Human Resource Ma-nagement 43 (4): 409-424. https://doi.org/10.1002/hrm.20033

Kochan T, Bezrukova K, Ely R, Jackson S, Joshi A, Jehn K, Leo-nard J, Levine D, Thomas D (2003) The effects of diversity on business performance: report of diversity research network. Human Resource Management 42 (1): 3-21. https://doi.org/10.1002/hrm.10061

Konrad A, Prasad P, Pringle JK (2006) Handbook of workplace diversity. California: Sage Publications Ltd. Kirton G, Greene AM (2010) Theorizing policy approaches to equality and diversity. In: Kirton G, Greene AM (Eds) The dynamics of managing diversity. Butterworth-Heinemann Oxford, 117-140.

Kossek EE, Lobel SA, Brown J (2006) Human resource strategies to manage workforce diversity: examining the business case. In: Konrad AM, Prasad P, Pringle JK (Eds) Handbook of workplace diversity. Sage, Thousand Oaks, CA, 53-74. https://doi.org/10.4135/9781848608092.n3

Kyalo JMK (2015) Effect of diversity in workplace on employee performance in the banking industry in Kenya. Strategic Journal of Business & Change Management 2 (53): 145-181.

Larkey LK (1996) The development and validation of the workforce diversity questionnaire: An instrument to assess interactions in diverse workgroups. Management Commu-nication Quarterly 9 (3): 296-377. https://doi.org/10.1177/0893318996009003002

Lee C, Lee JW (2012) Analysis of the relationships between the hospitality workforce and job-satisfaction factors accor-ding to age, gender, native language and racial-ethnicity. Journal of Tourism and Hospitality 1 (104): 1-8. https://doi.org/10.4172/2167-0269.1000104

Lee CH, Hung CC, Chien CS, Zhuang WL, Hsu CYY (2017) Regulatory foci and expatriate adjustment. Personnel Review 46 (3): 512-525. https://doi.org/10.1108/PR-03-2015-0077

Leonard JS, Levine DI, Joshi A (2004) Do birds of a feather shop together? The effects on performance of employees’ similarity with one another and with customers. Journal of Organizatio-nal Behaviour 25 (6): 731-754. https://doi.org/10.1002/job.267

Manoharan A, Gross MJ, Sardeshmukh SR (2014) Identity-conscious vs identity-blind: Hotel managers’ use of formal and informal diversity management practices. International Journal of Hospitality Management 51: 1-9. https://doi.org/10.1016/j.ijhm.2014.04.007

Martins D, Proenca T (2012) Satisfaction towards human re-sources practices and repatriates’ retention: An empirical examination in the Portuguese companies context. European Institute for Advanced Studies in Management 4 (7): 221-235.

McNeely RL (1989) Gender, job satisfaction, earnings, and other characteristics of human service workers during and after midlife. Administration in Social Work 13 (2): 99-116. https://doi.org/10.1300/J147v13n02_07

Mor Barak ME, Levin A (2002) Outside of the corporate mainstream and excluded from the work community: A study of diversity, job satisfaction and well-being. Commu-nity, Work and Family 5: 133-157. https://doi.org/10.1080/ 13668800220146346

Mor Barak ME, Levin A, Nissly JA, Lane CJ (2006) Why do they leave? Modeling child welfare workers’ turnover intentions. Children and Youth Services Review 28: 548-577. https://doi.org/10.1016/j.childyouth.2005.06.003

Muindi F, K’Obonyo P (2015) Quality of work life, personality, job satisfaction, competence, and job performance: a critical review of literature. European Scientific Journal 11 (26): 223-240.

Nzeadibe TC, Ajaero CK, Okonkwo EE, Okpoko PU, Akukwe TI, Njoku-Tony RF (2015) Integrating community perceptions and cultural diversity in social impact assessment in Nigeria. Environmental Impact Assessment Review 55: 74-83. https://doi.org/10.1016/j.eiar.2015.07.005

Odhiambo OW, Kyalo JMK, Ngao E, Mwangi C (2013) Effects of managing gender of employees in enhancing organizational performance. A case study of Kenya ports authority. European Journal of Business and Management 5 (21): 50-62.

Odhiambo OW (2014) Workforce diversity and its effects on employee performance: a case of Mbita sub county Homa-Bay County in Kenya. Doctoral dissertation, Moi University.

Ogbo A, Kifordu AA (2015) Diversity Management Research (DMR) As a strategy for sustainable development in the third world: experiences and future plans of intellectuals. Procedia – Social and Behavioural Sciences 195: 1303-1310. https://doi.org/10.1016/j.sbspro.2015.06.299

Ogbo AI, Kifordu AA, Ukpere WI (2014) The effect of workforce diversity on organizational performance of selected firms in Nigeria. Mediterranean Journal of Social Sciences 5 (10): 231-236. https://doi.org/10.5901/mjss.2014.v5n10p231

Ohunakin F, Adeniji AA, Oludayo OA, Osibanjo AO (2018) Survey dataset on leadership styles and job satisfaction: the perspective of employees of hospitality providers. Data in brief 19: 2178-2188. https://doi.org/10.1016/j.dib.2018.06.033

Ohunakin F (2018) Talent retention strategies and employees’ behavioural outcomes in Nigeria’s hospitality industry. Unpublished Doctoral Thesis. Department of Business Stu-dies, School of Business, College of Development Studies, Covenant University, Ota, Ogun State, Nigeria.

Olsen JE, Martins LL (2012) Understanding organizational diversity management programs: a theoretical framework and directions for future research. Journal of Organisational Behaviour 33 (8): 1168-1187. https://doi.org/10.1002/job.1792

Omonijo DO, Oludayo OA, Eche GO, Uche OC, Ohunakin F (2015) Intentional turnover of the administrative staff in a private faith-based higher institution, Southwest Nigeria. Mediterranean Journal of Social Sciences 6 (2): 424-434. https://doi.org/10.5901/mjss.2015.v6n2s1p424

Ordu A (2016) The effects of diversity management on job satis-faction and individual performance of teachers. Academic Journals 11 (3): 105-112.

Ortlieb R, Sieben B (2014) The making of inclusion as structu-ration: empirical evidence of a multinational company, equality, diversity and inclusion. An International Journal 33 (3): 235-248.

Pitts D (2009) Diversity management, job satisfaction and perfor-mace: Evidenced from US federal agencies. Public Adminis-tration Review 69 (2): 328-338. https://doi.org/10.1111/j.1540-6210.2008.01977.x

Ponce-Pura MPA (2014) Diversity and inclusion in a multinatio-nal corporation: Senior managers’ perceptions across three Asian regions. Unpublished Thesis.

Qasim M (2017) Effect of workforce diversity on employee’s job performance: the empirical assessment of education sector, Jalalabad, Afghanistan. International Journal of Economics & Management Sciences 6 (5): 1-4. https://doi.org/10.4172/2162-6359.1000452

Roberson Q (2006) Disentangling the meaning of diversity and inclusion in organisations. Group and Organisation Management 31 (2): 212-236. https://doi.org/10.1177/ 1059601104273064

Shore LM, Randel AE, Chung BG, Dean MA, Ehrhart KH Singh G (2011) Inclusion and diversity in work groups: A review and model for future research. Journal of Management 37 (4): 1262-1289. https://doi.org/10.1177/0149206310385943

Society for Human Resource Management (2009) Global diversity and inclusion: perceptions, practices and attitudes: a study for the society for human resource management, Conducted by the Economist Intelligence Unit. 1800 Duke Street, Alexan-dria, VA 22314 USA.

Singal M (2014) The business case for diversity management in the hospitality industry. International Journal of Hos-pitality Management 40: 10-19. https://doi.org/10.1016/ j.ijhm.2014.02.009

Singal M, Gerde VW (2015) Is diversity management related to financial performance in family firms? Journal of Family Business Review 28 (3): 143-259. https://doi.org/10.1177/ 0894486514566012

Son J, Ok C (2018) Extraversion as a moderator in the curvilinear relationship between newcomers’ organizational tenure and job satisfaction. Journal of Vocational Behaviour 110, Part A: 72-88. https://doi.org/10.1016/j.jvb.2018.11.002

Stamper CL, Masterson SS (2002) Insider or outsider? How em-ployee perceptions of insider status affect their work behavior. Journal of Organizational Behavior 23: 875-894. https://doi.org/10.1002/job.175

Stazyk EC, Davis RS, Liang J (2012) Examining the links between workforce diversity, organizational goal clarity, and job sa-tisfaction. Annual Meeting and Exhibition of the American Political Science Association, New Orleans, LA.

Telcom YT (2015) Job satisfaction in a diverse workforce: to examine the relationship between employees with minority background and job satisfaction. Unpublished Master Thesis. University of Stavanger Faculty of Social Sciences, The Nor-wegian School of Hotel & Tourism.

Thomas DA, Ely RJ (1996) Making differences matter: a new paradigm for managing diversity. Harvard Business Review 74: 79-90.

Ugwuzor M (2018) Gender management and behavioural outco-mes of women at work. International Journal of Management Studies 2 (5): 82-91. https://doi.org/10.18843/ijms/v5i2(5)/11

Welbourne TM, Johnson DE, Erez A (1997) The role-based per-formance scale: validity analysis of a theory-based measure. Working Paper 9: 7-05.

Zhu Y (2013) A review of job satisfaction. Asian Social Science 9 (1): 31-45.