EFFECT OF GENDER DIVERSITY AND ETHNIC

DIVERSITY ON EMPLOYEE PERFORMANCE

By

Huda Binte Rashid

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA,
PAKISTAN 2021
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 EFFECT OF GENDER DIVERSITY AND ETHNIC
DIVERSITY ON EMPLOYEE PERFORMANCE

By
Huda Binte Rashid
Roll No: 50614

Submitted in partial fulfillment of the requirements for the Degree of Master’s in

Business Administration,

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

2021

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 Certificate of Approval

This is to show that the research work given in this thesis, entitled “Effect of Gender
diversity and Ethnic diversity on employee performance” was conducted by Miss Huda
Binte Rashid under the supervision of Dr. Sajjad Afraid, towards the partial fulfillment of
the demand for the degree of Masters of Science

Student Name: Signature:

Supervisor Name: Signature:

Head of department: Signature:

ii
 DECLARATION

I certify that the research work given in this thesis is to the best of my knowledge my own.

All sources used and any help received in the preparation of this dissertation have been

acknowledged. I hereby declare that I have not submitted this material, either in whole or

in part, for any other degree at this or any other institution.

Signature……………….

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 ACKNOWLEDGEMENT

First and foremost, In the name of Allah, most graceful and most merciful all the

praises and thanks to Allah the Almighty for his showers of blessings throughout my

research work to complete my work successfully.

I wish to express my sincere appreciation and show my gratitude to my supervisor Dr.

Sajjad Afridi who has the substance of a genius he convincingly guided and

encouraged me to be professional and for his enthusiasm for the project, for his

support, encouragement and patience. Finally, many thanks to all participants that

took part in the study and enabled this research to be possible.

I wish to acknowledge the assist and great love of my parents and my siblings they

kept me going on and this work would not have been possible without their help.

I am also grateful for my fellow who also help me out with their rich and insightful

information to figure out my whole research.

I am exceedingly appreciative to all the respondent who spent their precious time

and patience in filling out the questionnaire . It would not have been attainable to

complete my research project without their honest attempt.

Huda Binte Rashid

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Contents
Certificate of Approval ................................................................................................................. ii
DECLARATION ......................................................................................................................... iii
ACKNOWLEDGEMENT ........................................................................................................... iv
LIST OF TABLES ...................................................................................................................... vii
LIST OF FIGURES ................................................................................................................... viii
LIST OF ABBREVIATION ........................................................................................................ ix
Abstract ......................................................................................................................................... x
CHAPTER No. 1 .......................................................................................................................... 1
INTRODUCTION ................................................................................................................. 1
Background of the Study ....................................................................................................... 1
Problem Statement ................................................................................................................. 5
Research Questions................................................................................................................ 5
Research Objectives .............................................................................................................. 6
Flow of the Thesis ................................................................................................................. 6
CHAPTER 2 ................................................................................................................................. 8
LITERATURE REVIEW ...................................................................................................... 8
Introduction ........................................................................................................................... 8
Work-Force Diversity ............................................................................................................ 8
Theoretical Underpinning .................................................................................................... 10
Similarity/Attraction Theory ............................................................................................... 10
Social Categorization Theory (SCT) ................................................................................... 11
Employee Performance (EP) ............................................................................................... 12
Gender Diversity (GD) ........................................................................................................ 16
Ethnic Diversity (ED) .......................................................................................................... 19
Ethnic Diversity and Employee Performance ..................................................................... 21
Gender Diversity & Employee Performance ....................................................................... 24
CHAPTER 3 ............................................................................................................................... 33
RESEARCH METHODOLOGY ............................................................................................... 33
Introduction ......................................................................................................................... 33

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 Research Design .................................................................................................................. 33
Target Population ................................................................................................................ 34
The Sample Frame ............................................................................................................... 34
The Sampling Technique ..................................................................................................... 35
Instruments .......................................................................................................................... 35
Ethnic and Gender Diversity ............................................................................................... 35
Employee Performance........................................................................................................ 36
Operational Definition of Terms ......................................................................................... 36
Method of Data Analysis ..................................................................................................... 36
CHAPTER 04 ............................................................................................................................. 38
DATA PRESENTATION, ANALYSIS AND INTERPRETATION ........................................ 38
Introduction ......................................................................................................................... 38
Demographic Characteristics of Respondents ..................................................................... 38
Descriptive analysis ............................................................................................................. 41
Table 4.5 Descriptive Statistics ........................................................................................... 42
Data Presentation ................................................................................................................. 42
Reliability Test .................................................................................................................... 43
Inferential Analysis (IA) ...................................................................................................... 44
Table 4.11: Pearson’s Correlations ...................................................................................... 45
CHAPTER 5 ............................................................................................................................... 47
CONCLUSIONS, DISCUSSION AND RECOMMENDATIONS ........................................... 47
Introduction ......................................................................................................................... 47
Conclusion ........................................................................................................................... 47
Ethnic Diversity and Employee Work Performance ........................................................... 48
Gender Diversity and Employee Performance .................................................................... 48
Limitation and Future Research Recommendation ............................................................. 49
Theoretical and Practical Contribution ................................................................................ 49
References ................................................................................................................................... 52

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LIST OF TABLES

Table. 3.1 Sample population .................................................................. 21

Table.4.1 Demographic Characteristic of respondents gender ................ 23
Table.4.2 Demographic Characteristic of respondents age ..................... 24
Table.4.3 Demographic Characteristic of respondents education… ...... 24
Table.4.4 Demographic Characteristic of respondents experience......... 25
Table.4.5 Descriptive statistic… ............................................................. 27
Table.4.6 Response Rate of Respondent ................................................. 27
Table4.7 Cronbach‟s Alpha .................................................................... 28
Table.4.8 Reliability of variable Gender diversity ................................. 28
Table.4.9 Reliability of variable Ethnic diversity ...................................28
Table 4.10 Reliability of variable employee performance..................... 29
Table 4.11: Pearson‟s Correlations ......................................................... 30
Table 4.12 Coefficients of regression… ................................................. 30
Table 4.13: ANOVA…………………………………………. 31

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 LIST OF FIGURES

Figure no 1 Flow Chart of the Study………………………………………15

Figure no 2 Conceptual framework………………………………………..39

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 LIST OF ABBREVIATION
EP : Employee performance

ED : Ethnic diversity

GD : Gender diversity

IA : Inferential Analysis

CPA : Person Correlation Analysis

RA : Regression Analysis

ABL : Allied bank limited

MCB : Muslim Commercial Bank

UBL : United bank limited

HBL : Habib bank limited

BAL : Bank Alfalah Limited

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 Abstract

In today’s business environment where management use different strategies to

compete in competitive business world they also faces some challenges associated

with workforce diversity. Age, social inheritance, physical quality power and inability,

group, belief , faith, gender, and sexual mental attitude all these are different

dimensions of workforce diversity. This document analyzes the consequence of

gender and ethnic diversity on employee performance. Data were collected from 180

employees of the banks located in Hazara region. The findings of this study disclosed

that gender and ethnic diversity has a positive and significant impact on employees’

performance. The findings of this study is believed to be very useful for organization

in identifying the appropriate strategies and practices that will foster an inclusive

culture, where gender and ethnic diversity can lead to employees’ performance.

Keywords: gender diversity, ethnic diversity, employee performance, workforce diversity

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 CHAPTER No. 1

INTRODUCTION

Background of the Study

Diversity classifies variances among individuals and make out that these dissimilarities

are a valued asset (Chijoke-Mgbame, Boateng, & Mgbame, 2020). Diversity is a term

with a comprehensive meaning, it has both negative and positive effect on businesses

and employees (Mousa, Massoud, & Ayoubi, 2020). Gender differences are still detected

globally, even in industrialized countries. It is essential to explore deep to find out

closely what impressions gender diversity and ethnic diversity has on work-force

performances. For any organization employee are the imperative chunk, and when we

talk about two important attributes gender diversity (GD) and ethnic diversity (ED), both

male and female plays their vital role. Minehart and Foldy (2020) talk about ethnicity

that, ethnicity is definite to as the formal gathering of individuals. Diverse workplaces

represent the employees from different cultures, backgrounds and circumstances. With

different attitude of working style every other employee can learn from each other. The

word workforce diversity is broadly classified into many other term i.e. Age , Gender ,

Ethnicity , Education background Diversity. The important asset of an organization, are

diverse employees whose effective management play role instead of their difference in

age, culture, ethnicity, gender and education for meeting organizational goals. When

people from different circumstances work collectively, their distinctive views frequently

lead to superior ingenuity. Work-force diversity (WFD) is a very diversified area which
1
is debatable, and vast in scope with some limitations i.e research, and its functional

groups, societal groups as well as psychosomatic investigation. According to Li, Wang,

Haque, Shafique, and Nawaz (2020) Diversity highlight the part of the numerous groups

such as gender, ethnical background (different identities), and income in the society that

creates the world. The study made by Kowo, Kadiri, and Zekeri (2020) indicate that

there is a need of diversity in work place nevertheless our main focus is on gender

diversity and ethnicity.

Women take equally part in business world nowadays and are granted with equal

opportunities with men while with these opening this gender diversity makes so many

hurdles which may distress the performances of employee positively and negatively as

well. It has been investigated from many previous studies that those organizations who

value the significance of GD and ED are able to seize the skillful worker which place the

progressive impact on employee performance. Organizations with higher gender

diversity are tends to be more reliable than those who focus only on single gender. To

make a business successful organization needs to utilize the talent of both male and

female but on the other hand many difficulties are seen as bias against females in their

offices. For instance Fernando, Jain, and Tripathy (2020) reported that women face

problems related to their career growth in the organizations. Previous literature also

endorsed that the role of WFD in employees performance (see e.g, Areiqat, Hamdan,

Zamil, & Aldabbagh, 2020; Rizwan, Khan, Nadeem, & Abbas, 2016; Setati, Zhuwao,

Ngirande, & Ndlovu, 2019).

Several studies have been conducted to examine the relationship between gender

diversity and employee performance. These researchers hold opposing views on whether

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or not including women in organisations is advantageous to the organisation. According

to Setati et al. (2019), the presence and recognition of women can positively enhance

their performance and increase organisational performance by bringing additional

viewpoints to decision-making. Similarly, Orazalin and Baydauletov (2020),

documented that women provide extra views such as stronger innovative potential, more

global market expertise, and a higher awareness of various client needs. Some

academics, however, believe that the presence of women in organisations may not be

beneficial, especially if legal, political, and societal demands for gender equality affect

their nomination.

Previous empirical investigations yielded conflicting findings. The majority of empirical

studies undertaken in the last decade concentrated on multinational corporations in

Europe and the United States (US). Brahma, Nwafor, and Boateng (2020), discovered

that gender diversity was positively associated to employee and organisational

performance in large enterprises in the United States. Another study conducted in the

United States by Xie, Zhou, Zong, and Lu (2020) discovered that organisations with a

good reputation for hiring and promoting women had the highest rates of productivity

and profitability, concluding that the presence of women in organisations positively

correlates with increased employee and organisational productivity. In contrast to these

findings, Dobbin and Jung (2012) determined in their study of 120 financial

organisations in the United States that gender diversity has no effect on employee or

organisational performance. Similarly, Rose (2007) discovered no significant link

between gender diversity and employee performance in his study of Danish enterprises.

Gallego, Garcia, and Rodriguez (2010) discovered that gender diversity was not

significantly associated to employee performance in Spanish organisations. Given the

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conflicting findings, this study will look at whether gender diversity corresponds with

employee performance in the banking sector. Moreover, from the literature, it is

observed that results are contradictory if we compare US firms with European. Thus, it

can be said that one cannot generalize the result of one country to another. Therefore,

there is a need of further investigation to know how gender diversity effect employees

performance in the context of Pakistani culture.

Furthermore, Globalization and the deployment of workforce diversity programmes such

as affirmative action measures have had a significant impact on ethnic diversity

adoption. ED has emerged as an economic driver in global business due to its benefits.

Organizations with a significant ED are more creative and innovative (Dinesen,

Schaeffer, & Sønderskov, 2020). However, (Minehart & Foldy, 2020) argue that in order

for organisations to profit from ethnic diversity, managers must have the knowledge and

abilities to manage diversity, as it can have negative consequences if not handled

properly. As a result, employees' behaviour may shift, such that group members may

only opt to favour members of their ethnic origin. This may also have negative

consequences, such as poor communication, decreased cooperation, and decreased

cohesiveness(Setati et al., 2019). Furthermore, this may, to a greater extent, result in

confrontations, a strong intention to leave, dis-satisfaction and low performance (Mügge,

van der Pas, & van de Wardt, 2019).

Previous empirical research on the ED and EP is inconclusive. For instance, Dinesen et

al. (2020)discovered a strong link between ED and EP. Similarly, (Kabara & Modibbo)

endorsed the significant impact of ethnic diversity on firms’ performance. However,

there are some contradictory findings available in the literature (see e.g, Mügge et al.,

4
2019; Selvaraj, 2015). These studies exhibit a wide range of empirical outcomes

achieved in various locations and settings. Given these conflicting findings, this study

looks into the relationship between ED and EP in the banking sector of Pakistan.

Problem Statement

Despite improvements in workforce diversity in Pakistan, gender and ethnicity

challenges such as discrimination, prejudice, and sexual harassment still persist. This is

due to organisational leaders viewing diversity as a legal requirement rather than a value

addition to organisational growth and profitability (Leboho, 2017). It is critical for

organisational leaders to comprehend the implications of diversity in their organisations,

to recognise its benefits, and to design methods to mitigate the negative repercussions of

diversity. It is therefore very necessary to verify the role of GD and ED on EP (Areiqat et

al., 2020).

Furthermore, previous literature is inconclusive regarding the impact of GD and ED on

EP. Moreover, previous studies were mainly conducted in US and European context

(Bristy, How, & Verhoeven, 2020; Dinesen et al., 2020; Donaldson et al., 2021;

Fernando et al., 2020). As a result, this study fills a gap in the literature by investigating

the impacts of gender and ethnic diversity on employee performance in the banking

sector of Pakistan.

Research Questions

1. How does gender diversity influences employees’ performance in the banking sector

of Pakistan?

2. Is there any impact of Ethnic diversity on employees’ performance in the banking

5
 sector of Pakistan?

Research Objectives

3. To examine the effect of gender diversity and on employee performance.

4. To find how ethnic diversity influences employees’ performance.

Flow of the Thesis

The present thesis is organized into five chapters. The first chapter was the introduction

chapter, where the study variables and its connectivity were introduced. The research

problem, research questions and objectives were also discussed in the first chapter. The

second chapter is based on literature review. This chapter describes the theoretical and

empirical literature concerning GD, ED and EP. Chapter three is methodology that

describes the methods used to get to the result of the study. Population, sample size and

sampling techniques are discussed in the third chapter. Chapter four is the analysis chapter

in which the results are presented and chapter five is based on conclusion, discussion and

recommendation. Figure no 1 presents the flow of the present study.

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Figure No. 1: Flow Chart of the Study

Chapter No.1
Introduction, Problem
Statement, Research Questions,
and Objectives

Chapter No. 2
Literature Review, Hypotheses
development and Conceptual
Framework

Chapter No. 3
Methodology, Sampling
technique, instrumentation

Chapter No. 4
Findings and Analysis,
Frequency distribution,
Correlation analysis,
Regression Analysis

Chapter No. Five

Conclusion, Discussion and
Recommendation,
Contribution, implication
and limitation

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 CHAPTER 2

LITERATURE REVIEW

Introduction

This chapter broadly describe the intention of this study and an extensive theoretical

framework with regard to attributes of workforce diversity viz GD and ED. Conceptual

framework were also foreground in this section of thesis which critically showed the

relationship between the two independent variables with dependent variable. In this

research ethnicity and gender diversity are the independent variables while the dependent

variable is employee performance. An observed assessment of related study was talk

over which pointed the early studies on the topic of workforce diversity only two

attribute are taken in this study and its effect on employee performance. A critical study

of the individual independent variables, was performed, with regard to their effect on the

productivity of the employees and their general attitude towards work and business

ethics.

Work-Force Diversity

Workforce diversity is the commonalities and differences within employees in terms of

ethnic background, age, disability and physical abilities, gender, colour, religion, and

sexual orientation (Cho, Kim, & Mor Barak, 2017). Individuals differ not only in terms of

colour, sexual orientation, social culture, and mental abilities, but also in their tastes and

points of view. For a long time, society had been segregated on these issues. The work is

influenced by diversity to promote variety. Using a better staff is a requirement for every

8
organisation, but managing such a large workforce is also a huge difficulty for

management. Individuals' perceptions of themselves and others are diverse. These

observations have an impact on their engagements. Human resource professionals must

successfully negotiate difficulties such as adaptability, correspondence, and change in

order for larger groups of workers to perform effectively as an organisation. Productive

elements recognise the need for rapid activity and will now employ humans to manage

variety in the workplace (H. W. Lee & Kim, 2020). The intensity and success of an

organisation are dependent on its ability to grasp diversity and comprehend the effects.

Successful businesses effectively analyse their approach to workplace diversity issues,

develop, and implement diversity plans. A company with a varied staff can provide more

different solutions to difficulties such as resource sourcing, management, and allocation.

Representatives from other organisations contribute unique experiences and abilities, as

well as ideas that are flexible in reacting to altering customer demands markets (Saxena,

2014). Diversity of talents and experiences, such as language, enables a firm to provide

quality services to clients all around the world. A wide pool of skilled employees with the

necessary abilities and experiences assists a business in meeting the expectations, wants,

and desires of its consumers (Glazer, Tobias, & Mentzel, 2018). Because employees are

encouraged to work, businesses that embrace diversity at their workplaces improve

employee performance and productivity. It speeds up the plan implementation process,

resulting in improved income for the organisation. Successful firms see the need for quick

action and are ready to invest resources in workplace diversity management (Saxena,

2014). Diversity implementation in organisations might be the ultimate litmus test for all

diversity champions. Armed with the results of performance reviews and research data,

they should design and implement a modified strategy to expand the effects of diverse
9
diversity in the workplace for their specific organisation.

Theoretical Underpinning

Similarity/Attraction Theory
Byrne Donn proposed the The similarity or attraction theory in (1979). It references to

people's general proclivity to get drawn in by others with similar goals. Intrigue suggests a

desire for or eagerness to be in the presence of the individual. Distinctive measures of

likeness have been investigated in both emotional and familial contexts. Comparability

effects are most grounded and predictable for values, states of mind, enticement, and action

tendencies. Identity comparability has revealed weaker, but still important, effects on

attraction.

Since the mid-1900s, social science has provided significant assistance to theory principles.

Researchers from a variety of disciplines, including marketing, social psychology, political

science, and humanism, have contributed to and obtained data from empirical tests of the

hypothesis. The concept provides a remarkably insightful and foresighted approach for

investigating why and how individuals are drawn into and influenced by others in their

communal. Individuals who share comparative vital mentalities are more likely to be

drawn in to each other than those who share less imperative states of mind Berscheid and

Walster (1969) and Baskett, Byrne, and Hodges (1971) opined that individuals are most

pulled in to other people who share comparative mentalities. There are several reasons

people prefer the company of others who share their mental condition (Berscheid and

Walster 1969; Byrne 1971). Having comparative states of mind, in instance, may provide

assurance that a man isn't alone in his or her conviction; they may even be correct in

holding the mindset being referred to. Learning comparative dispositions may help

10
individuals in providing a predictive "window" into the other's behavioural preferences to

anticipate others' future practises, and individuals may expect that other people who hold

comparative mentalities to themselves have a more prominent role.

People are also drawn to others who exhibit identification traits similar to their own.

Individuals may connect with some persons because they share similar identities.

Companions, for example, are more likely to share identity qualities than non-companions.

In this regard, accomplices have more similar identities than individuals in randomly

selected groupings (Baskett et al., 1971). According to the theory when organization

embrace Workforce diversity will have their workers through service engaging

heterogeneity targeted at drawing together and harmonizing in their job - related tasks due

to the firm's acceptance of their diversity, and this makes them a family, thus doing well

and understanding one another.

Social Categorization Theory (SCT)

This theory outlines the circumstances whereby a person will see a group of people, as

well as the effects of seeing people in aggregate terms (Spears & Haslam, 1997).

Irrespective of the fact that the supposition is frequently introduced as a confirmation of

psychological group formation, it is exactly idea of as a general inquiry of the structure

and function of categorisation forms in societal acceptance and connection that deals with

issues of personal way of life as well as group issues. The theory was developed in part to

address questions raised by social character hypothesis regarding the thoughtless bases of

social recognizable proof. Because of the unmistakable intergroup structure of group

activities, such settings are frequently employed to describe self-categorization theory

forms (McGarty, 2018). Self-categorization hypothesis has been shown to be compelling

in the academic field of social psychology and beyond. It was initially associated with the
11
topics of social impact, group unification, group polarisation, and collective action. The

hypothesis has recently been used as a cornerstone of the “social character approach”,

“leadership”, “personality”, and “out-group homogeneity”.

One of the theory's tenets is that the self should not be regarded as a fundamental

component of cognition, but rather as a product of the psychological framework at work.

Alternatively, the self is a product of psychological procedures rather than a "thing" at the

heart of judgement (Brown & Turner, 2002). According to McGrath, Berdahl, and Arrow

(1995), the diversity rhetoric typically confounds several types of workforce diversity.

Adhere to ethical viewpoints on diversity have emphasised the importance of ensuring

social class diversity in a work - force. Whereas an individual trademark may provide the

foundation for social order, only some aspects of workforce diversity may be realistic

(Northcraft, Polzer, Neale, & Kramer, 1995). (McGrath et al., 1995) observed a number

distinct types of diversity that fall under this operational attributes banner, such as

differences among a workforce in information, aptitudes and abilities, traits and

dispositions, and identity, subjective style, and behavioural style. According to the notion,

the environment in which an individual is reared, socialised, and trained influences the type

of skills, knowledge, and abilities he or she acquires. It is related to the background

concerns regarding employee work diversity.

Employee Performance (EP)

Organizations must improve employee performance if they are to become market leaders in

this global capitalist economy (Top, Abdullah, & Faraj, 2020). EP is referred to as the

“successful completion of tasks by a selected individual and measured by a supervisor or colleague,

to pre-defined acceptable standards, while efficiently and effectively utilising available resources
12
within a changing environment(Tinofirei, 2011, p. 28)”. Employee performance, according to (Al-

bdareen, 2020), may benefit both employees and organisations. A better-performing employee is

less likely to quit his or her work. Further, based on expectancy theory, a high-performance

appraisal serves as a green signal for employees to receive greater recognition, salary raises, and

promotions inside the organization (Lăzăroiu, 2015), affecting their decision to stay with their jobs

(Linz, Good, & Busch, 2015). Similarly, (Osabiya, 2015) associated organizational growth with

high employees’ performance. EP was viewed as a variable that was primarily dependent on ‘input'

factors such as financial resources throughout the industrial revolution period (Beziibwe, 2015).

However, recent studies show that a variety of factors, including workforce diversity, have a

significant impact on employee performance (Areiqat et al., 2020; Brahma et al., 2020; Mousa et

al., 2020; Setati et al., 2019). As a result, the findings of this study will shed insight on the extent to

which gender and ethnic diversity influence employee performance.

Employees’ performance (EP) has attributed differently by various scholars. For instance,

Salas ‐ Vallina, Alegre, and L ó pez ‐ Cabrales (2021) attributed EP with employees

efficiency and effectiveness. The state at which employee is able to fulfill the goal with

availability of minimum resources this only done when the employee is use work with

efficiency. Effectiveness is the quality to carry out or make a plan or due outcome.

Effectiveness is the knowledge to achieved desired objectives whereas quality and

motivation also have a significant role in this context. Thus, knowledge and motivation are

both necessary for effective employees performance. The same expression is repeated by

Aurigemma and Leonard (2015), he expressed performance = f (motivation x ability) that

means total intended output determined by HRM of organization. It indicates that lack of

knowledge and motivation negatively effects the level of performance and results. In

addition, Farooq and Hussain (2011) and stated that the performance of is judge by three

element; situation of work, level of motivation and knowledge level, and expressed as;
13
Performance = f ( motivation x work environment ability). Quality in work means

employee’s personal, intelligence and ability to do his/her work. It also enhances

knowledge and the ability needed to do work. Employee’s feeling to work and his sincerity

with his/her job all this depend upon motivational level of an employee.

Manpower is most central and vital resource for running an organization well. From the

production to client relationship things are depends upon manpower. Organizations are

establish with certain goals and for succeeding these goals organization have to utilize

given resources for getting preferred outcome. Employees are the biggest asset for any

organization weather the organization is big or small its success depend upon their

performance. Therefore for all the organization it is important to manage workforce

diversity to achieve its goal. Janell (1998) in his study observed the effect of

organizational change on employees in a large government office and found that

remarkable change large impacted both the performance and psyche of the employees.at

ashok leyland organization Mangalam (2001)made his research and studied the

performance of employee.for executing the organizational change by employee HRM

department of the organization plays a vital role. the migration of employee can be

decreases by strategic planning that is implemented by HR department and also increase

the productivity of work force and efficiency of the employee. Pless & Maak (2004) in

their work starred that organizations in order to achieve its objectives should allow

employees from different backgrounds, outlook and thinking with different way to

efficiently work together and to execute to their higher potential. Diversity can be either

deleterious or deleterious for EP this is suggested on previous research Williams and

O‟Reilly, 1998. With creativity and problem solving skill diversity is deeply associated

14
with it (Jehn et al., 1999) on the contrary it is negatively affiliated with glueyness and

cooperation (Pelled et al., 1999). A good human resource, workforce selection, it is

considered to improve the efficiency of both the employee and the organization (Adler,

1986).In addition to employee diversity can increase creativity is to expand the range of

perspectives, it is better to identify problems, and to offer more options and better results

(Adler, 1986). He also argues that the wind is consistent with the workers organizations,

to me it was very important in order to maintain the skills of people with different work

experience to the development of equal opportunity and diversity management, and plan

of action , in an effort to in the market defend their defined position (Gilbert &

Ivancevich, 2000). The variety of workplaces, it creates conflict between employees or

between employees. The Conflict comes from the differences in their perceptions,

thoughts, attitudes, interests, preferences, differences in their believe differences about

the political view , and the inappropriate allocation of assets. It is not necessary that

Conflict usually occur on issues and always create negativity. nor does it always make a

lot of hostility. It depends a lot on how to resolve the conflict. In the view of

Kigali,(2006) When it is well taken care of, it can be a very powerful means of

advancements. There should under view and ignore the conflicts of workers in an

organization by manage leads to a clash between them. In turn, these clashes, to translate

into the physical, the emotional conflict in the long term, that is, they cause damage to an

organization's culture, employee morale, and overall organizational effectiveness. It can

also decrease the level of creativity, modernization, worth, and productivity of the

organization and its employees, which in the end will lead to negative effects on team

performance (Caetanu, 2005).

15
Gender Diversity (GD)

Over the past few time period, organizational barriers that prevent women from moving

up the career ladder have become a very important area for research in the organization.

In the view of Vinnicombe (2004) it has been observed that women are not as much in

leadership positions in organization as compare to men. Therefore it has been often seen

that most of the businesses are run by men and they play their role as elite/top level.

There are only a countable number women who are serving at higher level and play bit

part in breaking this perception about them that they can’t serve at elite level and can

serve only at middle and lower level Currently, the gender of board members of several

large corporations is a obstacle to vocation development. Singh & Vinnicombe

(2004) argues for women, it all depends on their weight, because their abilities are not

being used to their full potential. The private sector is clearly labeled as arrogant, with

powerful financial resources and in general, state cannot control it. Historically, in the

private sector, including on the board of directors, It is seen that men are dominating,

and the majority of high-level positions men can control them , and in particular in the

term of control (Kent, kirton, & in the afternoon, 2011). One of the most commonly

used figure of speech is used to describe women in the lack of an organizational leader

in the "glass ceiling" position. Brahma et al. (2020), says that the term "Glass Ceiling"

was in the mid-1960s. This can be utilized to depict it's anything but a flimsy boundary

that is so self-evident, yet at the same time exceptionally strong, can make it hard for

ladies to fit and qualify for a specific stage. The glass ceiling was create to depict the

organization and its procedure, which raises the endless challenges and constraints faced

by women in their 30s trying to reach the top position in their field of research. Here,

women can't get to the top level management accounting hierarchy, even if they look
16
like it (Gatrell & Swan, 2008). Women working in organizations are around the

corner from the politics of equal treatment and equal opportunity, and although in most

cases it seems quite up to the challenge-the career ladder for a woman-and in large

organizations it is often down, as in men, from the ladder to climb to the top of the tree.

Women often have to pass on jobs and positions, including in the human resources

department, also known as "children's projects" (Gatrell & Swan, 2008). Exercises

and preceding that are evident not only in large companies, public sector organizations,

but also in businesses large and small, just as women, are frequently missing at the

board level and in a family where children keep on outweighing little girls and where

ladies' commitments are regularly minimized. Men should therefore have a common

standard of organizational roles in which management and decision-making are

performed. The "glass celling" Look like a barrier “Glass ceiling" restricted the the

access of women' to senior positions as managers,leaders just because of their gender

(Powell, 2011) he also added that in financial terms and all together for a conventional

woman to work all day, the representative will in any case get a compensation that is

lower than that of their male colleagues. The financial circumstance of ladies in many

associations is still lower than that of men. This hole is halfway because of the below

wages and compensations of ladies' concentrated contest laborers contrasted with men

utilized in escalated rivalries. The glass ceiling is not a barrier that relies on women's

lack of opportunities for high-level managerial positions. Instead, the qualities women

like to promote are higher in the organization because they are women. To women’s

success by the breaking of the glass ceiling and other barrier , for most organizations it

is a major challenge for them. If so, for women is it a policy that raises the equal salary

and other incentives ad advantages of the program, their is a strategy which increase the
17
pay according to the load of work and give them a promotion and other benefits to

women in the organization.

Consequently, the differences of male and female are considered as Gender issues were

spot in time period of 1950s, but foreground as an essential content in organizational and

management studies in 1980s to 1990s. During this period there constituted the impact of

GD in diverse studies. Parkin (1987) accented on women issues in such firms which are

dominated by men. For the greater good of the organization and to increase the

productivity of the staff member that acts as the foundation of the organization in which

the employee plays a key role, discrimination on the basis of gender. However, current

research is formulated to analyze discrimination and their influence on creativity and

innovativeness of employees. Generally Whole preference is giving to male because male

are more dominating than the female. We have done this research in order to verify that

the forms of discrimination against gender and it influences EP in sector of banking , in

the area of operation. In this study, it can be useful to human resource managers in the

banking sector are facing a similar kind of issues in relation to discrimination against

women and its impact on the performance of the employees. It will also be useful for

employees in the banking sector, through the provision of information on the basis of the

effective point of non-discrimination on the basis of gender in its performance.

The gender explained by Powell (2011) and the functional consequences of a person who

is either male or female, such as beliefs and opinions about which attitudes, actions,

principles, knowledge, skills, abilities, and areas of interest were more appropriate or

characteristic of one gender over others. Exploring the GD emphases and in what manner

mangers rely on discrimination of women as well as men.this sort of gender difference

18
may also effects the how people react to the actions of others in the workplace or any other

group in the union. Gender differences have been shown as bias, typecasts, and

discernment. Wayne (1995) articulates that no commandment has ever endeavored to

specify literally the word ‘discrimination’. This term explain in the context of work force

taking unfair advantage of from others groups and their members by comparing same

group members Kanter (1977) in his studies propose that studies must observe percentage

of men and women in a unit, rather than simple fluctuation, as there may be variances in

the effects of having a small marginal versus an almost, but not quite, equal share of men

and women in a unit.

In the group when there is minority of any one of gender they experience “solo” or “token

status”. Women are susceptible to getting and tolerant more female oriented chores when

they are the only woman in a group and their work is noticed with more inspection,

whereas men who are only in group tend to be preferred. Women are to some point

recluses, as they are a lesser in the companies, and they help in the work environment by

fetching diverse facets to solutions. (Thomas, 1996; Martin, 1998; Acker, 1990; Kanter,

1987; Myaskovsky, Unikel, & Dew, 2005)

Ethnic Diversity (ED)

When a common personal identities are share by the set of induvudual this can be stated as

Ethnicity. Ordinary content customs and habitual activity and further yield their part with a

self conscious personal identity as a state or nation (Sayers, 2012). ED indicate

multifariousness in culture, spoken language, religious belief, grouping and centralization

civilization. There has been an increase in the number of employees at the the organization,

19
the use of natural process and greater participation, as well as an increase in employee

satisfaction and overall performance. With respect to business outcome the general level of

ED does not affect group performance i.e. sales, profits, and market share. Nevertheless,

most of the members of the municipality were ethnic diversity, the greater the ED

performance can have effected positively. (Gupta, 2013). As a result of the grow in

diversity, there has recently been an increase in the number of employee groups in order to

increase the commitment of employees to improve their working performance and the

organization as a whole. However, in so far as the nature of the formation of the man

power, it is rapidly flattering diverse more and more in terms of ethnicity, race, gender, age,

educational level, etc, similar to the attraction has gone into overdrive, with regard to the

outcome of the differences in intellectual settings (Watzon, Johnson, & Zgourides, 2002).

The development of a wide variety of cultural organizations today, as a result in society

there is an increase in the variety of cultures in a society, and, therefore, are distributed

over the genetic, educational, religious lap. Watzon, Johnson, & Zgourides (2002) said

with the growing the productivity of work groups is as a outcome of the variety of the

heritage of the employee, the composition, and is seen as an advantage in the use of a

variety of ethnic backgrounds, and to make a problem solving decision , and to improve the

final result of the members of the team, as they are well aware of the ways in which they

will be able to take advantage of their differences to their advantage. According to

Harrison & Klein (2007) companies are experiencing the adverse consequences of the

development of the demographic differences such as race or ethnic origin, citizenship, sex,

gender, and age. To remember It is essential , though, these are people from different

ethnic groups who are more likely to be less satisfied with their work, are fewer faithful to

the organization, and are having difficulty with their identity, and they feel or have
20
experienced discrimination (Fernando et al., 2020). However, when in groups, minority

groups, and most of the problems are, develop, and they tend to disappear. Timmermans,

Ostergaard, & Kristinsson (2011) said in their study ethnicity can stand as a exchange or

as a substitute for, the cultural background and ethnic otherwise, it may lead to a more

positive, creative, and innovative outcomes of the organization or its members, when it

comes to expanding the perspectives of employees at the organisation.

ED is self-determination of societal content personality as opposing to something that can

be obligatory on individual by just making opinion and look at the single and about who

they are founded in what they look like (Sayers, 2012). In the context of social identity

belief, as long as ED is a above ground level attribute of diversity, it can be rapidly used to

split a grouping of people into ethnic prospect. People often have a tendency to identify

themselves with their ethnic group, as it provide them a sense of belonging and connecting

them to a unit of nearly accompanying to one another. It is acceptable that people have the

tendency to be the preferred choice of those who belong to the ethnic origin, more than any

other.

Ethnic Diversity and Employee Performance

Hawes and Melton ,(2017) proposed that with different diversely attitude at workplace

create prospects for better and able to get more inventive answers for given problems.

According to Dastane and Eshegbe (2015), those organizations that stab themselves

deeply in ethnically diverse environment are in a good situation to be able to do

something new and creative. Opstal (2009) said that ethnicity can have both advantages

as well as disadvantages. Similarly, Richard, Watson, (2017) contended that in diverse

management the effect of increasing diversity at work place is the very key to assuring

21
that organization and business will be able to fully gets benefits from bringing diverse

group into the work environment and organization. Alesina & La Ferrara (2005) stated

that ethnic diversity involves cultural and religious, back ground identities. (Brunetto

farr Wharton, 2002 haslam, 2002) said that the base of some important characteristics

social identities theories suggest that individuals classified itself and other in categories

these characteristics are race, gender or ethnicity . Graen (2003) revealed that for the

team work ethnic attribute is very useful, the ethnically different views gives the

advantage and become supportive for solving a problem which lead towards some

positive result. Groups based on ethnically difference showed good outcome than

homogenous and identical groups (Jackson, Joshi et al. 2003). Kristinsson ,(2011),

suggested that ethnicity can be optimistic to the performance, meanwhile it extend the

opinion in the firm that multiethnic workforce has been increased in the organizations

for exploiting larger engagement & cooperation to progress & upturn both employee

gratification & business concert. Loeters (2011) in their research investigate the

connection between ethnicity and employee performance by putting the team tenure as

moderating role and work value as mediator. A total of 167 team member were taken as

sample from the R&D team members from six different organizations. No significant

relation found between value diversity and employee performance. Erez and Drori

(2010) in their study gave consideration that how ethnic and cultural processes of

professionalization, defence mechanism and actor hood support the occurrence and

expression of work values globally and their impressing on activities and behaviors in

the work situations. And ethnically diverse teams demonstrated the poor performance

than homogeneous groups (Mügge et al., 2019). Similarly, (Minehart & Foldy, 2020)

found that the groups were less consistent than that of the team, multiculturalism, and
22
diversity, may have a small positive effect on the performance of the performance of

your team. Ethnically-diverse teams leads to more creativity and innovation in the bio,

and education and training. A moderate degree of ethnic diversity has no effect on the

performance of the two teams, namely, the revenue, profit and market share, at the same

time, and with a high level of ethnic diversity and the improvement of business

performance. A comparable positive effect of ethnic range on sales, productiveness,

marketplace percentage, and innovativeness changed into said through Duppati, Rao,

Matlani, Scrimgeour, and Patnaik (2020) endorsed the positive and significant impact of

ED on employees performance such as creativity and innovative work behavior.

Furthermore, a recent study of Setati et al. (2019) on ED and EP was conducted in South

Africa Higher education. They collected data through stratified sampling technique from

258 academic and non-academic employees. Their result revealed that ED has a

significant role in EP. Similarly, Khan, Sohail, Sufyan, Uddin, and Basit (2019) assessed

the impact of some key attributes of ethnic diversity on EP in the Higher Education

sector of Pakistan. They randomly collected data from 440 faculty members of higher

education institutions located in Swabi district of Pakistan. Their empirical data

confirmed that ethnically diverse work force has shown better performances at higher

education sector. In another study of (Zhuwao, 2017) on workforce diversity and

employee performance conducted in selected universities of South Africa. They

collected data from 267 faculty and administrative staff and revealed that workforce

diversity has a significant impact on EP. Besides the positive impact of workforce

diversity, there are studies available that found negative or no significant impact of

work-force diversity on EP. For instance, Makhdoomi and Nika (2017) examined the

effect of ED on EP in the telecom sector of India. However, their results revealed that
23
ED and EP have no significant association. These contradictory results call for more

research in the domain of work-force diversity and employee performance. Thus the

present study would find out that how the attributes of work-force diversity affect

employees’ performance in the banking sector of Pakistan. Based on the above

discussion, we assume from the above empirical and theoretical discussion that ED has a

significant positive influence on EP.

H1: Ethnic diversity has a significant positive impact on employee performance

Gender Diversity & Employee Performance

Usually, In employee performance the effects of gender inequality results in a gamut,

from those who experience a positive effect on performance (Campbell and Urban,

2016). The business environment has extensive argued the effect of GD on employee

performance. Different analyzers discuss G.D leads to more innovative thinking. It is

essential for organizations to realize the effects of diversity. IN contrast contradictory

studies specifies that G.D sometimes effect the organization’s performance (Sharma,

2015). Kathimba and Anyieni (2018) stated that yet no country has ever entirely

exterminated and deeply focus on issues related to gender diversity like discrimination,

abuse etc. that organization ensure that for the diversified workforce they have payback

strategies and minimize the damages resulting from diversity. This examination look into

the effects of gender diversity on the performance of employees. Osabiya (2015) narrate

that employee performance give advantage to both organization and employees.

(Campbell and Minguez-Vera, 2008) said Women existence stimulates their performance

in a positive way which give positive effect on EP.

Durga (2017) proposed the performance as the piece of executing a duty and

24
responsibility or an attainment of desirable goals and success. He enhances his word by

saying that the efficiency of employees and how a good employee work, has benefits for

the organization. Odhiambo, Gachoka, and Rambo (2018) said that In Organizations

differences based on gender diversity are encouraged and defensible by abstract that

surely defined positive effect and therefore a higher evident feature to the males. In other

words as compare to female male have better ability to manage their jobs. But the result

will become more affective when they work in mixed group. A study of Oetzel and Oh

(2019) says that individual who executes well output has a minor possibility of give up.

According to Newman, Nielsen, Smyth, Hirst, and Kennedy (2018) when employee

worked in with mixed gender group it will generate more effective result than worked in

same gender group. Mountrouidou et al. (2019) study on the impact of G.D on the

research quality of higher education institutions in the United Kingdom debates that

despite earlier studies specifying considerably inferior issuing output between female

researchers, their study suggests the reality of a positive impression of gender diversity

on formal research quality due to possible synergy effects.

In the bank of Kenya the study by Hsiao, Ma, and Auld (2017) indicate that some

problems are related with G.D due to which banking sectors are bound to solved this

problem and making new strategies. Problems that are associated with equivalent

chances, gender grouping were quite delicate in the banking sectors. Brahma et al.

(2020), confirmed a significant impact of GD on EP. The conclusions of the study

disclosed that same gender class and E.P are undoubtedly accompanying. In Egyptian

Pharmaceutical Industry the survey by (Elsaid & Elsaid, 2012) is signposted that gender

variable are positively related with high EP.

In Kenya the study of banks by Kerga and Asefa (2018) disclosed that approaches for
25
backing to gender groups, and equivalent employment chances found in in the Banking

Sector of Kenya. The numerous attempt of hypotheses indicate a significant level of link

between E.P and in the banks the mean productivity and workforce when classified by

gender. Ngao and Mwangi (2013) said in his study at ‘Kenya Ports Authority’ (KPA)

showed that gender, prominently squeezed on organizational performance and

attainment.

J. Lee and Parpart (2018) said his view is described as depicting masculinity or

femininity. Experiential study backings the squabble that G.D is positively connected

with employee performance. Krishnan (2020) used the resource-based view of the firm to

debate that G.D at the management and organizational levels can offer a firm with a

economical advantage. Delgado-Piña, Rodríguez-Ruiz, Rodríguez-Duarte, and Sastre-

Castillo (2020) said that gender-based biases in organizations, are strengthened and

defensible by typecasts and prejudices that define positive features and therefore a

developed and advance status to the males. They hence perceived that, companies prefer

to hire men over women because they are perceived as more powerful and able to handle

their tasks. Biswas, Boyle, and Bhardwaj (2020), a study of scouts, the impact of gender,

age, and education on the productivity of Egyptian pharmaceutical industry workers, and

it should be an outstanding service to a diverse workforce. At level management

positions the study sample was 300 . By self-administered questionnaires methodology

data was collected. Two variable gender and educational background indicated that these

variables It is important to shed light on the differences in employee productivity, as well

as on some other factors in the work force diversity such as age diversity does not.

Mousa (2021) research to discover the effects of dealing gender diversity to boost

organizational performance, in Kenya Ports Authority (KPA) From sixty employees

26
which is a profit making public institution in Kenya by descriptive research design data

was collected. Statistical Package of Social Sciences (SPSS) is used for heoretical model

and hypothesis in this study. The outcomes showed that some aspects of workforce

diversity have a major impact on the effectiveness and success of an organization these

aspects are gender, age, and marital status. Add-on, research has shown that KPA at the

time of recruitment process they should focused on diversity, as this will lead to better

synergies at the time of making decisions, better understanding of whtat customer want,

and greater workforce flexibility. The summary that this is, however, should be

strengthened by well-written human resources plan of action and practice session.

Donaldson et al. (2021) in their study tried to understand the women stand in the male

dominated world organization and to know whether Legislative representation i.e.

Legislation for women representation had any effect on boards of the organization across

few developed countries like European countries, US, Canada and some developing

countries. The study analyzed that different know-how , policies , standard and norms are

adopted by different countries to address at leadership positions of women

representation, their board level and equal opportunity of employment. The strong

presence of women in the organization in European nation in their organization as

workforce. Other countries, part of European Union also altered their corporate

administration modular by inspiriting women state on boards. USA, Canada and

Australia briefly have give importance to make women representation dominant on

corporate board. Developing nations- Asia is insulation behind then these highly-

developed countries. Wikhamn and Wikhamn (2020) in their learning diagnose the

workforce discrimination on gender basis and its effect on employees contentment,

commitment, motivation and stress level from the education and health Sweeden, in the
27
questionnaires form from 526 dependents the data was collected. The analysis disclosed

that as compare to males, females are more discriminated in private organizations. So

because of this the stress level increase and satisfaction level become decreases. If your

employees have to meet their performance and meet requirements. The process is often

exchanged with effort; and even so, stress is said to have energy that must be exhausted

in the process, while the rate of return is calculated by dividing the final product by on or

off. In other words, if the output is low, when the person is doing their best to get the job

done, and the power is very high, but the performance is very poor. In light of the

trajectory, productivity and refers to conglomerates of effort has the opportunity and

quality, and workers in the workplace. Effort, think of to the amount of physical and

mental energy expended by an employee in the performance of their assigned duties.

Skills are a person's personal attributes, such as wealth, power, and a person's special

achievements in their workplace to complete assigned tasks. In other words, in the unit's

experience, expected performance, variables such as motivation, peace of mind,

emotional and mental state. However, if there is some kind of favoritism, such as gender,

it is expected that there will be a change in the person's emotional state that tends to

affect his / her performance and career development, and it has nothing to do with any

particular gender for the person or job that needs to be performed.

Gender diversity of employees, growing in different countries of all around the world

(Office, 2007). For example 29.4 percent equal representation of females in the U.S.

labor force increased. In 1950 (U.S. Census Bureau, 1970) to 46.3% in 2006(BUREAU,

2007). In addition, in the Australian labor force in order to ensure equal involvement of

women, the proportion of women increased from 22.9% in 1954 (Bureau of Census and

Community Statistics, 1958) to 46.1% in 2006 (Statistics, 2006). G.D both researchers
28
are attracted by with the increasing size of the labor force and interpreter. In particular,

this can raises the question of whether the gender composition of an organization's

employees affects the personality, group, or productivity of employees. In the early

1990s, both academics and practitioners expressed a common hope for what would have

an impact on labor force diversity and productivity. For example, Bristy et al. (2020)

argue that diversity is a source of competitive advantage. However, theories and

empirical studies to date show that positive or negative conclusions are drawn from the

diversity of the field. Similarly, Rehman, Orij, and Khan (2020) with the help of RBV,

and social identity theory hypothesized that gender diversity has an impact on employees

and firm performance. Their result revealed that GD has a significant role in EP and FP.

Further, empirical research has found incompatible results suggesting that diversity can

be either good or bad for businesses(van den Oever & Beerens, 2021; Wieczorek-

Szymańska, 2020). For example, Svyantek and Bott reviewed nine diversity studies

(published 1989-2003) that investigated the functional relationships of gender diversity.

Total number of nine studies, four did not receive significant results, two received

positive results, two received negative results, and one received indirect results. To staff

the body of study in diversity sends a unclear content as to whether for businesses G.D is

good or bad. Combined evidence demonstrates the importance of focusing on competing

predictions (Bae et al., 2015), including offline predictions (Fernando et al., 2020), and

considering the impact of context on different performance relationships (M Qasim,

2017; Muhammad Qasim, Rizvi, & Irshad, 2020). Competitive prediction is helpful

when prior knowledge leads to two or more logical explanations‟. In addition, Josh

and Jackson advised academics to describe in detail their study conditions so that they

could compare studies that could explain inconsistent outcomes. Studying the outcome of
29
contextual analysis can help to explain the inconsistencies in previous research and

achieve a direct and indirect understanding‟ of the functional relationships of basic

gender diversity (K. Gupta, 2013). V. K. Gupta, Goktan, and Gunay (2014) argues that

gender differences are positively associated with the performance of employees and the

organization. This is in line with (Benschop et al., 2020) who used an idea based on the

company's resources, stating that G.D at management and organizational levels can give

a company an improved competitive advantage. Even so, Greene, Kirton, Koumenta,

and Humphris (2021) argue that many organization do not recognize these benefits as

gender-based inequality persists in organizations. Kirton and Greene (2019), said all

around the world their are many cultures who still follow the conception that men are

ruling the world. Thus, same belief follow by the corporate world and organizations as

compared to women more men are prefer to hire because men appear to have higher

productivity and the ability to manage their work load, while women put aside because of

their female traits. Kirton and Greene (2019), however, stated that in organisations that

women are given balanced work chances and this is essential to amend employee

performance. At the Malaysian airline, In countries all over the world workforce gender

diversity is increasing (Office, 2007). For example (Eugene & Masiak, 2017) propose

that there was a significant positive relationship between G.D and E.P. In addition, some

other authors and also Eugene found that their is over the past 50 years has led to

product growth and GDP growth of 5% and 1%, and 10% increase in women in the

aviation industry respectively. According to a study by Catalyst's public sector (2004),

gender diversity has had a positive effect on organizational performance, but outcomes

which are positive may be relay on specific factors. Therefore, their is need to analyze

the relationship between functioning of public sector organizations and gender variation.
30
For example, a study of group having both male and female and same-gender groups

doing the work of a radio conference showed that there were no functional differences

between the two groups (V. K. Gupta et al., 2014). In this case, the type of work (simple

and especially physical) may be applicable to latest research. Different results can

produce by multi-tasking tasking. Variation in these type include gender, personality and

ability. Performance measures incorporate a specific combination of quality, quantity and

accuracy of interaction. Although none of these types of variances appear to have

significant effects on employee performance, where the work to be done is rated as too

complex (complex), significant performance benefits may arise from different groups

compared to different groups thus resulting in a relationship between employee diversity

and employee performance. Research has found that labor-based differences in

relationships contribute to working in a way that other employees tend to work more

effectively with colleagues who share the same traits and thus support Byrne's (1971)

assertion people having with similar social and cultural values are attracted to each other.

H2: Gender diversity has a significant impact on Employee Performance

31
Figure 1: Conceptual Framework

Gender Diversity

Employee
Performance

Ethnic Diversity

32
 CHAPTER 3

RESEARCH METHODOLOGY

Introduction

The objective of the present study is to analyse the effect of workforce diversity

parameters viz.- GD and ED on EP of the five selected organizations. Overview of the

research design and method that is used in this thesis are given in this chapter. The

methods of research, provided content to execution of the research towards the

objectives which has to be understand are given in this chapter. After considering the

research questions and supporting ideas, the background of this research from a

methodological perspective are describes in this section of the study. This sections of

this research were included; sample frame, research design, population, sample strategy

tools, sample size and, data collection processes, data processing and data analysis.

Research Design

According to Oso & Onen, 2008 research design is the whole design or strategy for

directing or carrying out the research. The study involved squeeze of opinion of some

employees of different core group at selected private banking organizations. The

investigation look into and analyze factors of workforce Diversity viz ethnicity and gender

diversity towards employees’ performance in an organization. A questionnaire was used as a

tool to examine those factors of diversity in relation to work performance. The sample is

examined in which the whole population was presented in order to obtain a more detailed

and wide range of explanation. The descriptive study was adopted because it has the great

advantage of using surveys, observations, and interviews, without the need for changing the
33
environment of study. (Yin 1984).

A structured standard questionnaire has been used In order to collecting data which is

based on 5 point likert scale. In order to meet the requirements of the study, 5 companies

were randomly selected. These organizations sent 300 requests to be filled in by their

respective employee so that we determine the accuracy and reliability of the data obtained.

Target Population

Mugenda and Mugenda (2003), stated a number of people as a whole group of people,

acts with common visual symbols. The whole group of people, goals or objects in which

the researcher seeks to achieve the knowledge referred as population (Kothari, 2004).

The present study is directed to examine the impact of ED and GD on performance of the

banking sector employees. The population for said study is all the public and private

sector banks located in Hazara region.

The Sample Frame

A list of all people in a population that can be selected is stated as sample, and it should

be a reflection of the population. According to (Sekaran & Bougie, 2019) the sample

consisted of employees of the organizations selected for the study. To obtain information

about the entire population an example of this is a bounded portion of a statistical

population, whose attribute are studied (Sekaran & Bougie, 2019). Data were collected

through convenient sampling technique from the executive level employees of the

selected branches of Allied bank limited, Habib Bank Limited, National Bank of

Pakistan, Bank Al-Habib, Meezan Bank Limited, Muslim Commercial Bank and United

Bank Limited. A total of 300 questionnaires were distributed among the employees of

the above mentioned banks. Out of 300 questionnaires 180 were returned and used for
34
further analysis.

The Sampling Technique

According to Orodho (2009), Sampling is a procedure that a researcher uses to gather

people, places, or objects for study. This is the process of selecting a certain number of

people or objects from the population in such a way that the selected group contains

elements representative of the characteristics of the entire group. A convenient sampling

technique is used to collect data from the employees of public and private banks

functioning in Hazara Region.

Instruments

This study uses a questionnaire as the primary tool to perform. Preliminary studies have

shown that most of the samples, elements that are employees, have sufficient knowledge

and experience to have confidence that the answer to the question is very convenient.

The questionnaire used in this study is for the following reasons; a questionnaire that

allows you to conclude that the respondent is more expressive, free and clear standards-

based approach that allows you to get the answer ; In a short time, most of the

information can be collected, so it can be said that this is a time-saving way of collecting

data that makes it easier to collect perspective data from respondents. The questions

consist of a 5-point Likert scale, where respondents “strongly agree” “agree” “disagree”

and “strongly disagree” and “neutral” constructed carefully series of very positive to

very negative attitudes toward this phenomena.

Ethnic and Gender Diversity

Ethinic and gender diversity was measured with the help of Elsaid’s 2012 scale that

35
consists of 10 items. It was assessed through 5 likert scale with sample item includes

“‘There is equal opportunity for career growth and advancement for women in my

organization” and “The organization concerns about the employee’s customs, cultures, and

values”.

Employee Performance
Employee performance was measured with the 10-item scale developed by Selvaraj’s

(2015). It was recorded on a 5likert scale with sample item “‘I intentionally expend a great

deal of effort in carrying out my job”.

Operational Definition of Terms

Diversity: Diversity refers to humans qualities which are completely different from one
another the groups in which we belong (Stoller & Gibson, 2004).

Performance: Corporate performance point the effectiveness/results of operations /

activities/initiatives that the organization strives to achieve its goals/objectives. According
to Moseng and Bredrup (2003) corporate performance is the combination of the
organization’s effectiveness, efficiency and adaptability.

Ethnicity: People with characteristic especially a cluster (ethnic group) who sharing a
common and classifiable civilization, religious belief, language, or the like. Referring to
the beginning, categorization, characteristics, etc.

Gender: Culturally and socially formed differences between men and women, defined by
terms such as "gender issues" and "gender policy"

Method of Data Analysis

36
Descriptive statistics for this purpose related to the presentation of collected data in

tables and graphs, and the calculation of percentages, averages and means of distribution,

correlation, i.e. the degree to which two variables are related in order to explain the data

(Offredy & Vickers, 2010). The investigator analyze the data which is collected from the

respondent using simple percentages and frequencies. Reliability of the research

instrument is tested by Cronbach‟s Alpha. By using Spearman‟s Rank Order Correlation

Coefficient to analysis the relationship between the variables (gender diversity diversity,

ethnic diversity on employee performance) the hypotheses were tested. To determine the

impact of population diversity on employee regression analysis was also performed. The

researcher used the “Statistical Package for Social Sciences” (SPSS) software to fully

analyze the data, encoding elements, and introducing them to SPSS for analysis.

37
 CHAPTER 04

DATA PRESENTATION, ANALYSIS AND

INTERPRETATION

Introduction

This chapter provides descriptive data statistics for the study . In order to understanding

and present the data tables are used. To explain the information in tables data are

presented and analyzed using Spearman's frequency and percentage rank correlation, to

examine the state of relationship that exists between two variables as well as regression

analysis .

Demographic Characteristics of Respondents

Information related with demographic characteristic of respondents is given in this

section. The characteristic include gender, age group, income level and education in the

selected organization. Data were collected from both male and female. The subsequent

table presents the details of the gender characteristics of the respondents. The table

presents that 59% of the respondents were male while 41% of the respondents were

female.

38
Table 4.1: Demographic Characteristics of the Respondents Gender

Frequency Percentage Valid percent Cumulative

percent
Valid Male 106 37.2 58.9 58.9

74 26.0 41.1 100.0

Female
180 63.2 100.0

105 36.8
Total
Missing System 285 100.0

Total

Table 4.2: Demographic Characteristics of the Respondents Age

Frequency Percentage Valid Cumulative

Percentage Percent
Valid 20-30 7 2.5 3.9 3.9
31-40 59 20.7 32.8 36.7
41-50 74 26.0 41.1 77.8
Above 50 25 8.8 13.9 91.7
Total 180 63.2 100.0
Missing system 105 36.8
Total 285 100.0

Table 4.2 shows the variation in the age of the respondents. It presents that majority of

the respondents were of the age group of (41-50) that is 41%, followed by the 32.8 % of

the age group of (31-40).

39
Table 4.3: Demographic Characteristics of the Respondents Education

Frequency Percentage Valid Cumulative

percentage percentage

Valid intermediate 19 6.7 10.6 10.6

Bachelor 78 27.4 43.3 53.9

Masters 71 24.9 39.4 93.3

M.pill and 12 4.2 6.7 100.0

above
Total 180 63.2 100.0

Missing 105 36.8 100.0

system
Total 285 100.0

Table 4.3 indicate the education level of the respondent in which 78 (27.40%) of our

respondents were Bachelor, 71 (24.9%) of our respondents were master degree holders,

12 (4.20%) of our respondents were M.phill holders, from total of 180 respondents.

40
Table 4.4: Demographic Characteristics of the Respondents experience

Frequency Percentage Valid percentage Cumulative percentage

Valid 1-5 72 25.3 40.0 40.0

6-10 81 28.4 45.0 85.0
11-15 19 5.7 10.6 95.6
Above 8 2.8 4.4 100.0
15
total 180 63.2
Missing system 105 36.8
total 285 100.0

This table 4.4 shows that 72(25.30%) of respondent have 1-5 year experience ,

81(28.4%) are with 6-10 years of experience, 11-15 are with 91(5.70%) and above 15

year are with 81(2.8%) from total of 180.

Descriptive analysis

The descriptive analysis of the data is given in this section. The data reflects employee’s

views on GD and ED items stated in the questionnaire. The responses were measured

through 5 point likert scale either “strongly agree”, “agree”, “neutral”, “disagree” or

“strongly disagree” going from extremely positive to extremely negative. The descriptive

Tables showing the frequency of the respondents, interpretations percentage distribution

all these are given below. The mean of gender diversity is 3.6372 and the mean of ethnic

diversity is 4.2783 and employee performance is 3.5795 respectively. And the standard

deviation for gender diversity is .47047 , ethnic diversity .38784 and employee

performance is .52246 respectively .

41
 Table 4.5 Descriptive Statistics

GD ED EP
N valid 180 180 180
missing 105 105 105
Mean 3.6372 4.2783 3.5795
Std. Deviation .47047 .38784 .52246
Minimum 2.30 3.20 2.41
Maximum 4.70 5.00 4.72

Data Presentation

A total of 285 questionnaires were distributed in various banks located in Abbottabad

region. Out of 285, 105 questionnaires were found incorrect, and 180 were found correct

for data analysis. The distribution of questionnaire shown below.

Table 4.6: Response Rate of Respondents

Total Number of No of questionnaire used Respondent rate

for data analysis
questionna questionnaires
ires returned
distributed
300 180 180 63%

42
Reliability Test

Reliability ensured that the research findings were consistently the same. The research

ensured the reliability of the questionnaire to determine its consistency in testing what it

was calculated to measure. For measuring reliability Cronbach’’s Alpha method was used.

The aim of the study is to examine the effect of diverse workforce in terms of GD and

ED on the performance of employee, randomly selected of five organizations. In this

research standard questionnaire is used as a tool to gather the data which is based on 5

point likert scale. In order to achieve the study requirement randomly 5 banks are

selected from hazara division and 285 questionnaires were pass on in these organizations

which is to be filled by respective targeted employees. From the above Table, For the 29

items the Cronbach’s Alpha coefficient is .881 that were analyzed together. The

coefficient ranges from 0-1. A low reliability have a score that is close to or equals 0

while an instrument that is reliable often tend to move towards 1 . From the SPSS

calculation, it inform that the research tool used for this study is reliable compared to the

generally acceptable score of 0.7. This reliability analysis was done applying

Cronhbach’s Alpha test to determine if the questions are yielding the kind of information

that is needed.

43
Table 4.7 Cronbachs Alpha

Instrument No. of Items Cronbach’s Alpha

Overall 29 0.881

Gender Diversity 10 0.743

Ethnic Diversity 10 0.775

Employee Performance 9 0.816

In order to test the internal consistency of the items the reliability analysis was

performed, Table 4.9, 4.10 and 4.11 present that GD was measured using ten items and a

coefficient alpha of .743 was obtain and ED was measured with ten items and a

coefficient alpha of 0.755 was acquire while the coefficient alpha of employee

performance is .816 with nine items. Above all, in general the reliability scores were

acceptable as they were above 0.70 (Andrew, Arora, Bilmes, & Livescu, 2013).

Inferential Analysis (IA)

To check the developed hypotheses inferential analysis is the necessary element. This is

also essential to interpret outcome concerning to big population. In order to doings the

analysis we use SPSS version 20. However following types of inferential analysis we

practiced while using SPSS mentioned version.

a. Pearson Correlation Analysis (PCA)

b. Regression Analysis (RA)

The Pearson correlation coefficient calculating for the gender diversity on employee

performance in an organization is given in Table 4.11

44
 Table 4.11: Pearson’s Correlations

GD ED EP
GD Pearson Correlation 1 .316** .960**
Sig. (2-tailed) .000 .000
N 180 180 180
ED Pearson Correlation .316** 1 .246**
Sig. (2-tailed) .000 .001
N 180 180 180
EP Pearson Correlation .960** .246** 1
Sig. (2-tailed) .000 .001
N 180 180 180
**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.12 Coefficients of regression

Unstandardized Standardized
Model Coefficients Coefficients t sig
B Std.error Beta
1 (Constant) -.014 .128 -.113 .910
GD 1.088 .024 .980 45.190 .000
ED 085 .029 .063 2.912 .004
a. Dependent Variable: EP

The relevance of the independent variable ED on the EP in banking sector are check in this

table. The predictive power of the model is checked by Beta value while the B values

symbolize the estimates of the model. Table 4.13, Based on the coefficient with p-value less

than 0.05 the Beta value for the Ethnic diversity is low indicating a low impact on the EP. The

beta value for GD on EP is .98 found significant at p less than 0.001. Thus the proposed

45
hypothesis (GD has a positive and significant impact on EP) is verified. Furthermore, the beta

value for ED on EP is found to be 0.063 found significant at p less than 0.005. The empirical

analysis for the present study thus verifies the positive impact of ED on EP and thus the

second hypothesis is also verified.

46
 CHAPTER 5

CONCLUSIONS, DISCUSSION AND

RECOMMENDATIONS

Introduction

This part of the thesis portray the conclusion and discussion of the entire thesis.

Hypotheses results are discussed with the reference of previous studies. Furthermore,

contribution, theoretical and practical implication, limitations and future research

recommendations are also discussed in this section.

Conclusion

This section of study render a sum-up of effect of each independent variable on the

dependent variable which is based on the analysis done in the previous chapter. The

purpose of this research was to analyze the relationship between ethnic diversity and

gender diversity on employee performance making reference to the banking sector of

hazara division. For the study data were collected from the selected private banks of hazara

division. Through structured questionnaire data were collected through 180 questionnaires

from the employees of selected banks. After analysis it seems that these banks see these

two dimension of workforce diversity as an important factor. In order to effectively

manage diversity from the study it was found for an organization to succeed in it diversity

plan, having a diverse workforce it is worth to understand the benefits, promoting diversity

by bringing together different individuals of different sociology and different inheritance

and making policies and implementing practices . When broad surrounding is planted, it

can lead the organisation to more innovation, development, creativity, capacity building,

47
productivity, efficiency and effectiveness among team or group members brought together.

Ethnic Diversity and Employee Work Performance

The primary purpose of the study was to examine the impact of ethnic diversity on

employees performance in the banking sector of Pakistan. For this purpose data were

collected from the employees of the selected banks located in Hazara Region. Empirical

result revealed that ethnic diversity plays an important role in employees’ performance.

Social identification, social categorization and similarity theory suggests that when a

workforce is ethnically diverse, psychological processes such as group liking, group appeal

and, worse even, group favouritism may arise. In addition, this could produce numerous

undesirable results such as less communication, fewer cooperation, less cohesion and even

disputes. In the light of the findings of this study, however, it appears that the management

of the organisation is devoted to managing ethnic diversity in the organization's workforce.

Most workers think that they work well with colleagues from diverse ethnic backgrounds,

so that there are no conflicts regardless of their languages. The result of this hypothesis is

consistent with the findings of previous study of (Setati et al., 2019). Moreover, the finding

is also consistent with the theory of social identity and social categorization.

Gender Diversity and Employee Performance

The second hypothesis of the study was to examine the significant impact of gender

diversity on employees’ performance. Findings revealed that GD significantly influences

employees’ performance. The results also demonstrate a high level of predictive power on

employee performance of gender diversity. Most of the respondents felt that when it comes

to employing different genders the institution does not discriminate and offers women with

48
equal possibilities for their professional development. The findings of this study contradicts

the result of (Arokiasamy, 2013) that leader prefer to recruit more men than women since

men are regarded to be able to work more effectively than women. The findings of this

study is consistent with the findings of (Setati et al., 2019).

Limitation and Future Research Recommendation

Gender diversity and ethnic diversity have a favourable effect on employee performance as

the study results show. This demonstrates that the banks recognise the need for varied

employees and accepts them. However, the importance of diversity is not known to all

organisations. It is important for every organisation to accept diversity and not only follow

affirmative policies and be satisfied with such a staff; organisations need to see that all

benefits derived from diversity are understood and exploited and strategies implemented to

minimise the negative effects of the in-group or out-group mentality. Just like other

studies, this study too has some limitation. For instance, data were collected from 180

employees of various banks, so the result could hardly be generalized. Future researcher

may focus on other industry to examine how these variables respond in industries other

than banking. Moreover, this study examine the direct association of GD and ED with

employees’ performance. However, researcher may also examine potential mediator and

moderator between the association of GD, ED and EP. The study can also be carried out by

studying one organisation in one industry and another. This provides more insight into the

difficulties of diversity.

Theoretical and Practical Contribution

The literature demonstrates that the majority of studies have been carried out in European

49
and American environments concerning the impact of gender and ethnic diversity on

employee performance (Adler, 2001; Campbell & Minguez-Vera, 2008; Erhardt, 2008;

Oxelheim, 2006). This study adds to the literature of GD, ED and Employees’

performance. Moreover, unlike previous studies, this study was conducted in the context of

Pakistani culture and confirms that both GD and ED have an important role in employees’

performance. Since this study confirms that both GD and ED have a significant positive

impact on employees’ performance, it would be very useful for organizational leaders to

understand the importance of gender and ethnic diversity for the organizational overall

performance.

It is important that the organization understands the importance of workforce diversity. In

our study, we reviewed the literature on analyzing the impact of gender and ethnic

diversity on employee performance. It turned out that there are many dimensions with

which to deal with employee relationships and performance. Ethnic diversity has a positive

impact on employees ' performance. Gender diversity can have a positive impact on an

employee performance. For a more focused and successful diversity strategy, one should

look to the organization's culture to change it, create an environment that promotes team

effort, engagement, and cohesion, which will have a positive impact on productivity. Team

building and training-improves collaboration and reduces the role of conflict, as well as

improves file sharing between employees. In addition, effective communication facilitates

the exchange of information between employees, which increases organizational efficiency.

This study also highlights the presence of positive and significant links between ethnic

diversity and the performance of banking sector employees. Research has found that

members of a minority group may experience less satisfaction from work, lack of

participation, addressing the issue of identity, perception of discrimination, and others. The
50
study also found that in customs, cultures and meanings, language and nation, greater

attention should be paid to diversity and inclusiveness in work and in governance.

From the analysis, it became clear that gender diversity is well bucked up. At work a high .

At work a high quality outcome are to be expected from both men and women. During the

hiring, recruitment and selection process, as well as employment, according to research, no

discrimination was indicated on the gender basis. In addition, it became clear that for a

select number of organizations, women are being hired, and this is in huge numbers, and

that employees are treated equally in every manner. It is also noted that in the selected

organizations women had offered the same chance to create and utilize their abilities,

skills and education.

51
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