Effect of Gender diversity and Ethnic diversity on employee

performance.

By
Huda Binte Rashid

MS (Management Sciences)

Supervised
By
Dr. Sajjad Afridi

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA,
PAKISTAN 2019
 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:

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 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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i
 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 Affridi 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 responder 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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 Table of content
CERTIFICATE.............................................................................................i

DECLARATION.........................................................................................ii

ACKNOWLEDGEMENT..........................................................................iii

TABLE OF CONTENT..............................................................................iv

LIST OF TABLES......................................................................................vi

ABSTRACT...............................................................................................vii

OPERATIONAL DEFINITION OF TERMS...........................................viii

CHAPTER ONE: INTRODUCTION
1.0 Background to the Study......................................................................1
1.2 Employee performance.......................................................................2
1.3 Ethnic diversity....................................................................................4
1.4 Gender diversity...................................................................................5
1.5 Problem statement................................................................................7
1.6 Research Questions.............................................................................7
1.7 Research Objective...............................................................................8
1.8 Hypothesis.............................................................................................8
CHAPTER TWO: LIRATURE REVIEW
2.1 Introduction..............................................................................................9
2.2 Employee Performance..........................................................................9
2.3 Gender Diversity.....................................................................................11
2.4 Ethnic Diversity and employee performance......................................12
2.5 Gender Diversity and employee performance......................................14
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction............................................................................................20
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3.2 Research Design......................................................................................20
3.3 Target population....................................................................................21
3.4 Sample Frame.........................................................................................21
3.5 Sampling Technique...............................................................................21
3.6 Instrument..............................................................................................22
3.7 Method of data analysis.......................................................................22
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
4.1 Introduction..........................................................................................23
4.2 Demographic Characteristics of respondent......................................23
4.3 Summary..............................................................................................26
4.4 Descriptive Analysis............................................................................26
4.5 Data Presentation................................................................................27
4.6 Reliability Test....................................................................................27
4.7 Inferential Analysis.............................................................................29
4.8 Multicolinarity Test...........................................................................31
CHAPTER FIVE : SUMMARY, CONCLUSIONS AND
RECOMMENDATIONS

5.1 Introduction.......................................................................................33
5.2 Summary of Descriptive Analysis....................................................33
5.3 Ethnic Diversity and Employee Work Performance.........................34
5.4 Gender Diversity and Employee Work Performance........................35
5.5 Proposed Areas for Further Studies..................................................36
CHAPTER SIX :
6.1 Reference.............................................................................................37
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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 Abstract

In today‟s business environment where management use different strategies in order to

compete with this competitive business world they also faces some challenges associate
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 analyze the effect of gender diversity and ethnic
diversity on the employee performance in banking sectors. It specifically examines the
relation between gender diversity and employee performance , ethnic diversity and
employee performance.The respondents were taken from banking sector of Abbottabad.
MCB, ABL, UBL, ASKARI BANK 60 respondents from each company i.e. total of 300
respondents were asked through a questionnaire there views and knowing about two
attribute of workforce diversity viz gender diversity and ethnicity diversity. Through with
efficacious leadership these genre of employee render the direction to attain the overall
goals of the organization. In an organization workers, regardless of their gender and
ethnicity are categorized into management/senior employees and others. The
management/senior employees are amenable for the overall governance of the
organization for enhanced performance. The study disclosed that there is significant
effect of gender diversity and ethnicity diversity on the performance of employees in the
organization. Software Package for Social Science (SPSS) is used in this study to find
out the empirical relationship of gender and ethnicity of the employees with the
performance .

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

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OPERATIONAL DEFINITION OF TERMS

Diversity: Diversity refers to differences or those human qualities that are different from our
own and outside the groups in which we belong (Stoller & Gibson, 2004).

Performance: Corporate performance indicates the results/outcomes of work

done/efforts/initiatives that the organization undertakes in order to fulfill the laid out
goals/objectives. According to Moseng and Bredrup (2003) corporate performance is the
integration of the organization‟s effectiveness, efficiency and adaptability.

Ethnicity: Characteristic of a people, especially a group (ethnic group) sharing a common

and distinctive culture, religion, language, or the like. Referring to the origin, classification,
characteristics, etc .

Gender: Culturally and socially constructed difference between men and women (as
indicated by terms such as 'gender affairs' and 'gender politics'

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 CHAPTER 1

INTRODUCTION

1.1 Background of the Study

Diversity classifies variances among individuals and make out that these dissimilarities are
a valued asset. Diversity is a term with a comprehensive meaning, now and then unclear
meanwhile it has had both negative and positive effects on businesses and employees.
Gender differences are still detected global, even in industrialized countries. It is essential to
explore deep to find out closely what impressions gender diversity and ethnic diversity has
on companies and organizations. workforce diversity is a worldwide workplace (Childs,
2005) .For any organization employee are the imperative chunk, and when we talk about
two important attributes gender diversity and ethnic diversity, both male and female plays
their vital role and Makokolo, (2005) 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. Workforce
diversity is a very diversified field which debatable, has been comprehensive cross ways
many limitations. That is, research research, functional groups, societal groups and
psychosomatic investigation. According to Barkman & Speaker, (2014) 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 (Stephen Brammer ,
Andrew Millington and Stephen Pavelin, (2007) indicate that there is a need of diversity in
work place nevertheless our main focus is on gender diversity and ethnicity.

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Now in this present era of business world women take equally part in business world
women 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 gender diversity and ethnic diversity are
able to seize the skilful worker which place the progressive impact on employee
performance. Those organizations that emphasis on greater gender diversity is more reliable
than those who focus on dominated by one only gender.
To make a business successful organization need 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.( Zaman et al, 2011) reports that women faces the problem related to their career
growth in the organization The study explain the role of gender and ethnic diversity on the
employee performance and to find the problem in its implications challenged by the
organizations in managing the gender and ethnic diversity. From many copious factors
workforce diversity is one of them by which employee performance is affected Alm &
Winberg (2016); Ntim (2015); Schwab, Werbel, Hofmann, & Henriques (2016). The
purpose of this examination is to analyze a number of apposite concerns about gender and
ethnic group involvement at workplace. Many enough studies on gender diversity and
ethnic diversity are their more or less all areas but not in educational sector specifically
Pakistan. This study will conduct between to different industries i.e. education sector and
banking sector as these are two different profession and they give different opinion about
the gender diversity and ethnic diversity.

1.2 Employee Performance

Different individual have formulated different convention or element that are thoughtful to
find out performance such as; Employee Effectual: Effectiveness is a function of
performance (i.e. the value free maker of employee behavior) (Borman, Ilgen, & Klimoski,
2003). to yield the right outcomes this is the capacity workforce This is because of the
employees who worked on or added value, and their ability to produce high-quality

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products (Blackard, 2000). Productivity refers to either value of bring about a project or the
speed at which work is realized (Secord, 2003). Blackard (2000) sees efficiency as the
general value of The worker‟s effort on the subject of the result achieved. the efficient use
of time and material is only done by implementing efficiency at work to accomplish the
desired goal (Khan, et al., 2015). 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 ability to accomplish a intention or make an intended or due
outcome. Performance of an employee, effectiveness or efficiency according to Vroom
(1994) cited in Armstrong (2012) is a role of quality and motivation. Thus, employees need
both knowledge and motivation for effective performance. This formula is also reputed by
(Robert, Leonard, & Leonard, 2015) who declared that performance = f (ability x
motivation) and it is a means by which human resource management conceive the
determinant of performance. This means that if knowledge, ability or motivation level is
low in employee it result is negative and the outcome will come also low Rahman, Hussain,
& Hussain (2011) citing Stott and Walker (1995) stated that employee performance can be
observed based on three element; work situation, knowledge and motivation level, thus
stated by the formula; Performance = f (work environment x ability x motivation). Quality
here has to do with the employee‟s personal, emotional and intelligence ability to take out
his work. That is the employee dominates the ability and knowledge required for the duty.
Robert, Leonard, & Leonard (2015) listed performance index as quality i.e. Competence,
seriousness and self-potency (self-potency is a motivational component and this is a belief
that the employee has in terms of their ability to complete the project allotted to him/her);
motivation contingence, goal-task clearness, responses ; technological system, task
intervention possibility, workplace order. System factors include factors such as poor
communication between employees, lack of enough coaching and training, etc. Employee‟s
feeling to work and his sincerity with his/her job all this depend upon motivational level of
an employee. Blumberg and Pringle (1982) cited in Armstrong (2012) developed a
performance equation as; performance = individual dimension x work effort x
organizational assist. Bailey et al. (2001) cited Armstrong (2012) introduced yet another
factor „opportunity to participate‟ to the formula. However, Boxall and Purcell (2003) cited
in Armstrong (2012) formulated AMO formula combining Bailey et al.

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1.3 Ethnic Diversity

Ethnicity can be seen as a collection of individuals who share a common identity. ordinary
content customs and habitual activity and also give their part with a self conscious personal
identity as a state or nation (Sayers, 2012). Ethnic diversity implies diversity in culture,
language, religious belief, grouping and centralization cultures. There has been an increase
in multicultural workforce in the organization for utilize greater involvement and natural
process to better and increase both employee satisfaction and work performance.The
general level of racial diversity does not affect group performance in terms of business
outcomes i.e. sales, profits, and market share. However, the majority of the members of the
municipality were ethnic diversity, the greater the ethnic diversity can have a positive
impact on the performance. (Gupta, 2013). As a result of the increase in diversity, there has
recently been an increase in the number of employee groups in order to increase the
commitment of employees to improve the performance of the employees and the
organization as a whole. However, in so far as the nature of the composition of the labour
force, it is quickly becoming more and more diverse in terms of ethnicity, race, gender, age,
level of education, etc, similar to the attention has gone into overdrive, with respect to the
effect of the differences in academic settings (Watzon, Johnson, & Zgourides, 2002). The
growth of a wide variety of cultural organizations today, as a result of the increase in the
variety of cultures in a society, and, therefore, are distributed over the genetic, educational,
religious lap. Watzon, Johnson, & Zgourides (2002) saidwith the increase in the
productivity of work groups is as a result 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 find solutions to problems, and to improve the outcome 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. It is important to remember,
though, that people of different ethnic groups are likely to be less satisfied with their jobs,
are less loyal to the organization, and are having problems with their identity, and they feel

4
or have experienced discrimination (Milliken & Martins, 1996). However, when in groups,
minority groups, and most of the problems are, develop, and they tend to disappear. Based
on the study of Timmermans, Ostergaard, & Kristinsson (2011) ethnicity can stand as a
replacement 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, as
it will broaden the perspective of the employees in the organization. Furthermore, following
the study of Timmermans, Ostergaard, & Kristinsson (2011) to a certain extent, ethnic,
racial inequality, and should be able to have a positive relationship with creativity and
innovation, while high levels of ethnic diversity has a negative effect, in that it tends to be
in groups, through the use of social categorization, the battle between the staff and the care
for a poor connection between the work of the team (Dahlin, Weingart, & Hinds, 2005).
Ethnicity is self determination of societal cultural personality as opposing to something that
can be obligatory on individual by just look at the single and making opinion about who
they are founded in what they look like (Sayers, 2012). From the view of the social identity
belief, since ethnicity is a above ground level feature 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 gives them a sense of belonging and connecting
them to a group of closely related individuals. It is believed that people have the tendency to
be the preferred choice of those who belong to the ethnic origin, more than any other.

1.4 Gender Diversity

In the past few decades, the organizational barriers that prevent women from advancing
through the career ladder and have become a very important area of organizational research.
Singh & Vinnicombe (2004) found in their study that women were most, if not all, of the
missing when it comes to leadership positions in organizations. However, male drivers are
often part of an elite group at the pinnacle of the business world, you are just a few of the
women have been able to break through this glass ceiling" of this elite group, in spite of the
fact that they are the 'middle management'. Currently, the gender of board members of
several large corporations is a barrier to career development. Singh & Vinnicombe

5
(2004) argues that it is a matter of weight because women's talents are not being used to
their full potential. The private sector is clearly characterized as an overbearing and
powerful financial interest and, in general, is not controlled by the state. Historically, the
private sector, including the board of directors, has been dominated by men, with men
controlling the majority of high-level positions, and particularly in terms of control (Kent,
kirton, & in the afternoon, 2011). One of the most commonly used metaphors is used
to describe women in the absence of an organizational leader in the "glass ceiling" position.
Mavin (2016), quoting from Morrinson & Von Glinow (1990) says that the term
"Glass Ceiling" was in the mid-1960s. This can be used to describe it as a thin barrier that is
so obvious, but still very strong, can make it difficult for women to qualify for a certain
stage. The glass ceiling was invented to describe the organization and its processes, 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 of the management
accounting hierarchy, even if they look like it (Gatrell & Swan, 2008). Women who
work in organizations claiming to angle policies that ensure equal pay and opportunity, and
although in most cases seem to be fairly qualified, the career ladder-for-women-in large
organizations is often shortened, as the men's ladder climbs to the top of the tree. Women
often move to special or professional positions, including in the human resources
department, known as "children's projects" (Gatrell & Swan, 2008). Practices and
processes that are evident not only in large companies, public sector organizations, but also
in businesses large and small, as well as women, are often lacking at the board level and in a
family where sons continue to take precedence over daughters and where women's
contributions are often marginalized. Men should therefore have a common standard of
organizational roles in which management and decision-making are performed. The "glass
ceiling" appears to be a limit on women's access to senior management positions, simply
because they are women (Powell, 2011). Powell added that in monetary terms and in order
for an ordinary woman to work full-time, the employee will still receive a salary that is
lower than that of their male colleagues. The economic situation of women in most
organizations is still lower than that of men. This gap is partly due to the lower average
wages and salaries of women's intensive competition workers compared to men employed
in intensive competitions. The glass ceiling is not a barrier that relies on women's lack of

6
opportunities for high-level managerial positions. Instead, the qualities women like to
promote are higher in the organization because they are women. With the removal of the
glass ceiling and other obstacles to women's success, it is a major challenge for most
organizations. If so, is it a policy that raises the equal pay and other benefits of the program
for women, policies that increase the equal pay for work of equal value and promotion of
other programs and benefits of interest to women in the organization

1.5 Problem Statement

When the advantageous situation for rehearse workforce diversity such as gender diversity
and ethnic acquired by the organization then employee will relish all the positive well
being such as motivation, abilities, knowledge and skill , more creative in their work and
good decision making (Amaram, 2007) and thus they will become activator for the
organizational development. On the other side if these attributes of workforce diversity not
handled the formation of various groups will occur; this could lead to misconception,
sensitive challenges, effort and finally to broad turnover of employees (Jackson et al, 1991;
William and O‟Reilly, 1998; Jehn, 1995). Many studies are made by many researches in
order to identify the effect of work force diversity, and on the attributes of workforce
diversity. Previous studies gives some mixed result hence. This study explain that how
employee performance is influence by gender and ethnic diversity which has effect on
educational institute and banking sector. Many study local or international has been done on
effect of workforce diversity in this study we investigate on about on;y two these attributes
i.e gender and ethnic diversity in two banking sector of hazara division, So that this study
search for to fill this gap through studying the effect of gender and ethnic diversity on
employee performance. Therefore this research focus on only two attribute of workforce
diversity which supports the employee performance.

1.6 Research Questions

1. Is there is relationship between ethnic diversity and organizational performance?

2. What is the relationship between gender diversity and organization performance?

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1.7 Research Objectives

1. To examine the effect of gender and on employee performance.

2. To find how ethnic diversity influence employee performance.

1.8 Hypothesis

In this study, our dependent variable is employee performance while are the independent
variables are gender and ethnicity.
Kochan et al., (2002) contend that employees start to recognize and realise sociology
deviation such as gender deviation infect the working relationship between the performance
of the employees Furthermore, Jehn and Werner (1993) calculated that diversity had a
crucial impression on radical processes, but the quality of the effect rely on whether the
diversity was in gender or not thus this suggested:
H1: There is a significant relationship between G.D and E.P.

When there are two forms of groups on one hand team with ethnically diverse wre found to
take better decision on the contrary ethnically similar group (McLeod et al, 1996; Watson et
al, 1993). Nevertheless, there are also reveals that organizational diversity tends to reduce
imparting and harmonization (Lazear, 1999; Morgan and Vardy, 2009) and increase the
turnover between employees (Jackson, et al 1991). Ensher and Murphy (1997) had
discovered more likings and vocational support in the relationships of the same race than
among cross race relationships. De et al, (2009) had concluded that ethnic diversity
typically causes rejection of mixed group unit and faded performance. Thus it is suggested:
H2: There is a significant relationship between E.D and E.P.

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 CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

This chapter broadly describe the intention of this study and a extensive theoretical
framework with regard to attributes of workforce diversity viz gender diversity and
ethnicity. Conceptual framework were also foreground in this section of thesis which
critically showed the relationship between the two independent variables with dependant
variable. In this research ethnicity and gender diversity are the independent variables while
the dependant 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.
Finally, there is a section on how to participate in the study, the intention was to complete
the study.

2.2 Employee Performance

Working successfully is the manner by which someone carries out a responsibility, made a
decision by its adequacy defined by Cascio (2000), how an employee well accomplishing
the necessity of a job (Rue & Byars, 1993) In order to accomplishment for task for every
other organization needs some kind of recourses such as machinery, money, employee as
their human skills and many other variables. Including all these variables 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 utilized heir given resources for

9
getting advantageous outcome.Employees are the biggest asset for any organization weather
the organization is big or small its success depend upon their performance.so for all the
organization it is important to managing 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 employee performance this is suggested on previous
research Williams and O‟Reilly, 1998).with creativity and problem solving skill diversity is
deeply associated with it (Bantel and Jackson, 1989; Jehn et al., 1999) on the other hand 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 to the development of equal
opportunity and diversity management, and policies in order to maintain the skills of people
with different work experience, in order to protect their competitive position in the market
(Gilbert & Ivancevich, 2000; Shaw, 1993). 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, religious differences, political
differences, and the inappropriate allocation of resources. Conflict is not always a negative
thing, nor does it always generate a lot of hostility. It depends a lot on how to resolve the
conflict. When it is well taken care of, it can be a very powerful source of development in
Kigali, 2006). As for corporate managers to ignore the conflicts between co-workers, which

1
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, innovation, quality, and productivity of the employees and the organization,
which ultimately will lead to negative effects on team performance (Jehn, 1994, 1995;
Amason, 1996; De Dreu, and Asked, 1997; Friedman et al. 2000; Michael et al. 2001;
Passos, and Caetanu, 2005).

2.3 Gender Diversity

Differences of male and female are considered as Gender issues were spot in time period of
1950s, but foreground as an essential content in management and organizational studies in
between 1980s & 1990s. The time period between these two periods constituted the gender
effects in different studies. Hearn & Parkin (1987) accented on female issue in those
organizations who are henpecked by male. Gender is defined as; “Gender contain a variety
of divergence between men and women,hold forth from the biotic to the
social”discrimination is tend distinctively on the basis of sex or race on the basis of above
definitions we can resolve that basically preference of one gender upon other is stated as
gender discrimination is. The gender discrimination may exist in assorted aspect which
include hiring discrimination, differences in salary and wages, discrimination/differences in
promotion and inequity related to different goods and facilities provided to different gender.
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. Therefore this study is designed to investigate
gender discrimination and its affect on employee productivity. Normally,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 its impact on
the performance of the employees in the banking sector, 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,

1
through the provision of information on the basis of the effective point of non-
discrimination on the basis of gender in its perforq asmance.
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 than the other. Exploring the gender diversity emphases on how
individuals rely on that males and females differ. These gender differences can influence
how people react to the actions of others in the workplace or any other group in the union.
Gender differences have been shown as bais, 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
disadvantage from the member of the particular group in contrast to the members of other
group. 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)

2.4 Ethnic Diversity And Employee’s Jobperformance

(Pitts, Hicklin, 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. Because manpower is living resources and can be improve with more training
and development. According to Dastane and Eshegbe (2015), reveals that those

1
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 about ethnicity
can have both advantages as well as have disadvantages. (Richard, Watson, 2017) in
diverse management the effect of increasing diversity at work place is the very key to
assuring that organization and bussiness will be able to fully gets benefits from bringing
depreciated group into the work environment and organization. Alesina & La Ferrara (2005)
stated that ethnic diversity involves cultural and religious , back ground identities . Social
identities theories suggest that individuals classified itself and other in categories based on
some silent characteristics i.e. gender, race or ethnicity (Brunetto farr Wharton, 2002
haslam, 2002). 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). Timmermans, Ostergaard and Kristinsson
,(2011), suggested that ethnicity can be optimistic to the performance, meanwhile it extend
the opinion in the firm that multiethnic workforce has been incresease 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 (Jackson et al.,
2003). Jones (2005); Jehn et al., (1999) found that the groups were less consistent than that
of the team, multiculturalism, and diversity, and may have a small positive effect on the
performance of the performance of your team. In the context of the workplace has a
significant impact on the effects of diversity on performance. Ethnically-diverse teams leads
to more creativity and innovation in the bio, and education and training (Alesina and La

1
Ferrara, 2005; Lee and Nathan, 2011; Ozgen et al., 2011). 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.(Sander, and Dennis, 2012). A
comparable positive effect of
ethnic range on sales, productiveness, marketplace percentage, and innovativeness changed
into said through Gupta (2013) and the crew overall performance of the
multidisciplinary groups in oil and gasoline industry by means of Van and Bunderson
(2005). Ely (2004) has determined no relationship among ethnic range and income revenue,
client dslight and sales productivity.

2.5 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 performancexz (Gul et al, 2011; Campbell and
Minguez- Vera, 2008; Noland et al, 2016; Kang et a., 2009; Schmid and Urban, 2016). The
business environment has extensive argued the effect of gender diversity on employee
performance. Differenet analyzer discuss gender diversity leads to more innovative
thinking. It is essential for organizations to realize the effects of diversity. On the other hand
contradictory research specifies that gender diversity sometimes effect the organization‟s
performance (Sharma, 2015). 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. Women‟s existence
stimulate their performance in a positive way which give positive effect on employee
performance discussed by (Campbell and Minguez-Vera, 2008).
Durga (2017) proposed the performance as the piece of executing a duty and 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 works, has benefits for the organization.

1
Organizations in which gender based differences are encouraged and defensible by abstract
that surely defined positivity effect and hence a higher evident feature to the males
(Jackson, Joshi et al. 2003, Cunningham , 2008). In Organizations differences based on
gender diversity are encouraged and defensible by abstract that surely defined positivity
effect and therefore a higher evident feature to the males (Jackson, Joshi et al. 2003,
Cunningham 2008). 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.
(Osabiya (2015) says that individual who executes well output has a minor possibility of
give up.
According to Eagly and Wood (1991) when employee worked in with mixed gender group
it will generate more effective result than worked in same gender group. Alicia & Thomas
(2016) study on the impact of gender diversity 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.
The study of the Banking Sector of Kenya by Munjuri et al. (2012) shows that some issues
are associated with gender diversity 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. Eugene et al. (2011), explore in
his study at the Malaysia Airlines that there is significant relationship between gender group
and employee performance the conclusions of the study disclosed that gender group and
employee performance are positively accompanying. The study by Elsaid et al. (2012) in
the Egyptian Pharmaceutical Industry signposted that high employee performance relates
positively with the gender variable.
The study by Munjuri et al. (2012) in the Banking Sector in Kenya revealed that the
banking sector had approaches for backing to gender groups, and equivalent employment
chances. The numerous tests of hypotheses showed a significant level of link between
employee performance and the mean productivity levels of the bank workforce when
classified by gender. The study by Ngao et al. (2013) at Kenya Ports Authority (KPA)
showed that gender, prominently squeezed on organizational performance and attainment.

1
According to Connell (2002), gender discusses to a depiction of masculinity or femininity.
Experiential research backings the squabble that gender diversity is positively linked to an
organization`s performance. McMillan-Capehart (2003) used the resource-based view of the
firm to debate that gender diversity at the management and organizational levels can offer a
firm with a economical advantage. Leonard et al. (2003) 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, organizations choose to hire male employees compared with women because
they are perceived to have better performance and abilities to manage their jobs. Abdel
(2012) study reconnoiters the influence of gender, age, and education background on
employee performance in the Egyptian Pharmaceutical industry which is distinguished to
employ extremely diversified 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 are significant in
clarifying the variance in employee performance when different other work force work
together , while age diversity dose not. Ngao & Mwangi (2013) research to discover the
effects of dealing gender diversity to boost organizational performance, From sixty
employees of the Kenya Ports Authority (KPA) which is a profit making public institution
in Kenya by descriptive research design data was collected. Theoretical model and
hypothesis in this study were tested using Statistical Package of Social Sciences (SPSS).
The results indicated that gender, age and marital status greatly impact on organization
performance and success. In addition the study recommended that KPA should recruit a
more diverse workforce as it will result to improved synergy in decision making, better
understanding of customer‟s needs, and increased flexibility in staffing. The study then
concludes that this should however be reinforced through well formulated human resource
policies and practices. Rai (2012) in her study tried to understand the women stand in the
male dominated world‟s organization and to know whether „Legislative representation‟ i.e.
legislations 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 the women representation at leadership positions,

1
their board level and equal employment opportunity. The strong presence of women in the
organization in European nation in their organization as workforce. Other nations, part of
European Union also modified their corporate governance modular by inspiriting women
state on boards. USA, Canada and Australia briefly have moved towards increasing women
representation on corporate board. Developing nations- Asia is insulation behind then these
highly-developed countries. Ali etal (2011) 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 Jamshoro and Hyderabad districts,
in the questionnaires form from 526 dependents the data was collected. the analysis
disclosed As compared 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, refers 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 (the
International Labor Office, 2007). For example, equal representation of women in the U.S.
labor force increased by 29.4 percent. in 1950 (U.S. Census Bureau, 1970) to 46.3% in 2006
(U.S. Bureau of Labor Statistics, 2007). In addition, in order to ensure equal representation
of women in the Australian labor force, the proportion of women increased from 22.9% in

1
1954 (Bureau of Census and Community Statistics, 1958) to 46.1% in 2006 (Australian
Bureau of Statistics, 2006). Gender diversity both researchers are attracted by with the
increasing size of the labor force and interpreter. In particular, it raises the question of
whether the gender composition of an organization's workforce has an impact on individual,
group, or employee performance. In the early 1990s, both scholars and practitioners were
generally hopefull about the effects of workforce diversity on performance. For example,
Cox and Blake (1991) argued that diversity can be a source of competitive advantage.
However, theories and empirical research thus far suggest that diversity can lead to either
positive or negative outcomes. The resource-based view of the firm (Barney, 1991) suggests
a positive diversity-performance relationship, whereas social identity theory (Tajfel, 1978)
suggests a negative diversity-performance relationship. Further, empirical research has
found incompatible results suggesting that diversity can be either good or bad for businesses
(Jackson and Joshi, 2004; Svyantek and Bott, 2004). For example, Svyantek and Bott
reviewed nine diversity studies (published 1989-2003) that investigated the functional
relationships of gender diversity. Of the nine studies, four did not receive significant results,
two received positive results, two received negative results, and one received indirect
results. The body of literature in diversity sends a confusing message to staff as to whether
gender diversity is good for businesses or not. Combined evidence demonstrates the
importance of focusing on competing predictions (Armstrong et al., 2001), including offline
predictions (Gupta, 2013), and considering the impact of context on different performance
relationships (Josh and Jackson, 2003). Competitive prediction is helpful when „prior
knowledge leads to two or more logical explanations‟ (Armstrong et al., 2001: 175).
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 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 (Gupta, 2013). Mwatumwa (2016) argues that gender differences are
positively associated with the performance of employees and the organization. This is in
line with Kalo (2015) who used an idea based on the company's resources, stating that
gender diversity at management and organizational levels can give a company a better
competitive advantage. However, Kirton and Greene (2015) argue that many organizations

1
do not recognize these benefits as gender-based inequality persists in organizations.
According to Nishii (2013), many cultures around the world still follow the notion that the
world is dominated by men. Thus, the corporate world holds the same belief and
organizations prefer to hire men compared to women because men appear to have better
performance and ability to manage their operations and women are marginalized compared
to female characteristics (Nishii, 2013). Kirton and Green (2015), however, stated that in
organisations giving balanced work chances for women is essential to amend employee
performance. At the Malaysian airline, In countries all over the world workforce gender
diversity is increasing. (International Labour Office, 2007). For example Eugene et al.
(2011) found out that there was a significant positive relationship between gender diversity
and employee performance. In addition, Eugene and other authors found that a 10%
increase in women in the aviation industry over the past 50 years has led to product growth
and GDP growth of 5% and 1%, respectively. According to a study by Catalyst's public
sector (2004), gender diversity has had a positive effect on organizational performance, but
these positive outcomes may be based on specific factors. Therefore, it is necessary to
examine the relationship between gender differences and the functioning of public sector
organizations. For example, a study of gender-diverse and same-gender groups doing the
work of a radio conference showed that there were no functional differences between the
two groups (Gupta, 2013). In this case, the type of work (simple and especially physical)
may be relevant to recent research. A multi-tasking task can produce different results. These
types of variations 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 organizational 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 that people are attracted to people with
similar social and cultural values.

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 CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

The objective of the present study is to analyse the effect of workforce diversity parameters
viz.- gender and ethnicity on the employee‟s performance of the randomly selected
organizations. This part provides an overview of the research design and method that is
used in this thesis. This chapter defined the methods of research, provided content to
execution of the research towards the objectives which has to be understand. After
considering the supporting ideas, and the research questions, this section describes the
background of this research from a methodological perspective. This sections of this reserch
were included; research design, population, sample strategy tools, sample frame, sample
size and, data collection processes, data processing and analysis.

3.2 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 rang 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 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

2
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.

3.3 Target Population

Mugenda and Mugenda (2003) defined a number of people as a whole group of people,
events or objects with common visual symbols. The whole group of people, goals or objects
in which the researcher seeks to achieve the knowledge reffered as population (Kothari,
2004).

3.4 The Sample Frame

A sample structure is a list of all people in a population that can be selected, and it should
be a reflection of the population. The sample consisted of employees of the organizations
selected for the study. An example of this is a finite part of a statistical population, whose
properties are studied to obtain information about the entire population. (Webster, 1985).

Table 3.1: Sample population

S.NO Target Polpulation Sample Polulation

1. 300 180

3.5 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 sample is
used to collect data.

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3.6 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 clea 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
carefully constructed series of very positive to very negative attitudes toward noesis
phenomena.

Method of Data Analysis

Descriptive statistics for this purpose relate to the presentation of data collected in tables
and graphs, and the calculation of percentages, averages and means of distribution,
correlation, i.e. i.e. the degree of the relationship existing two variables so as to explain the
data (Offredy & Vickers, 2010). The data collected from the respondent analysis by the
resercher using frequencies and simple percentages. To test reliability of the research
instrument Cronbach‟s Alpha was used. The hypotheses were tested using Spearman‟s Rank
Order Correlation Coefficient (Rho, rs or ) to analysis the relationship between the variables
(workforce diversity and employee performance).Regression analysis was also performed to
determine the impact of population diversity on employee performance. 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

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 CHAPTER 04

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction

For the study This chapter provides descriptive data statistics. In order to understanding and
present the data tables are used.in tables data are presented and analyzed using Spearman's
frequency and percentage rank correlation, as well as regression analysis to examine the
degree of relationship that exists between two variables to explain the information.

4.2 Demographic Characteristics of Respondents

Information related with demographic characteristic of respondents is given in this section.

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

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For gender in demographic, „1‟ for male and 2 for female, Employees were asked to
indicate their gender. Table 4.1 revealed 37.20% respondents were male while 41.1%
respondents were female.

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

Age of the respondents Table 4.2 shows that 7 (2.5%) of the respondents falls within the age
bracket of 20-30, while 59 (20.7%) of the respondents falls within the age bracket of 41-50,
and 25 (8.8%) of the respondents falls above age of 50.

Table 4.3: Demographic Characteristics of the Respondents Education

Frequency Percntage Valid Cumulative

percentage percentage

Valid intermediate 19 6.7 10.6 10.6

Bachelor 78 27.4 43.3 53.9

2
 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 respondent.

Table 4.4: Demographic Characteristics of the Respondents experience

Frequency Percentage Valid Cumulative

percentage 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

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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.

4.3 Summary

Table 4.1, 4.2, 4.3, 4.4, 4.5 provided information on the bio data section of the
questionnaire. It consisted of the respondents‟ gender, age group, education, work
experience, and income level in organization. In summary, the survey analysis showed that
majority of the respondents were male (37.2.%) between the age bracket of 41-50 (26.0%),
with bachelors degree (26..60%) educational qualification, and have worked in Banking
sector for about 5-10 years (28.4%) From the responds, it can be said that Banking sector
of hazara division has a work environment that welcomes diversity.

4.4 Descriptive analysis

This section presents data find from the respondents on gender diversity, ethnic diversity.
The data reflects employees‟ opinion on gender diversity and ethnic diversity items stated
on the questionnaire. The respondents gave their response by selecting from the likert scale
either “strongly disagree”, “disagree”, “neutral”, “agree” or “strongly agree”. Below are the
descriptive Tables showing the frequency and percentage distribution of the respondents
and the interpretations. 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 .

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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

4.5 Data Presentation

the total population of the study was 180 employees. Therefore a total of one hundred and
eighty (180) copies of questionnaire were distributed to all the employees of selected
banks. The entire questionnaire were correctly filled and returned giving a response rate of
100%.

The Table below shows the distribution of questionnaire.

Table 4.6: Response Rate of Respondents

Total questionnaires Number of questionnaires Respondent rate

distributed Convey

180 180 100%

4.6 Reliability Test

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

2
ensured the reliability of the questionnaire to determine its consistency in testing what it
was intended to measure. Cronbach‟s Alpha method was used for measuring reliability.
The objective of the study is to study the effect of diverse workforce in terms of Gender and
ethnicity on the performance of employee, randomly selected from five organizations.
Standard questionnaire is used as a research tool to collect the data which is based on 5
point likert scale. To achieve the study requirement randomly 5 companies are selected
from Delhi and NCR and 300 questionnaires were circulated in these organizations to be
filled by respective 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. Data was analysed using SPSS 20
statistical software.

Table 4.7 Cronbachs Alpha

Cronbach‟s Alpha No of items

.881 29

Table 4.8 Reliability of variable Gender diversity

Cronbach‟s Alpha No of items

.743 10

Table 4.9 Reliability of variable ethnic diversity

Cronbach‟s Alpha No of items

.755 10

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 Table 4.10 Reliability of variable employee performance

Cronbach‟s Alpha No of items

.816 9

A reliability analysis was performed in order to test the internal consistency of the items,
Table 4.9, 4.10 and 4.11 shows that gender diversity was measured using ten items and a
coefficient alpha of .743 was obtain and ethnic diversity 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).

4.7 Inferential Analysis (IA)

Inferential analysis is an necessary element to check the developed hypotheses. This

is also essential to interpret outcome concerning to big population. In order to doings the
analysis we use SPSS version 23. 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 estimated for the gender diversity on employee
performance in an organization is given in Table 4.11

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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

Remark: Coefficients Table 4.13, checks the relevance of the independent variable
(ethnic diversity) on the Employee Performance in banking sector. The Beta value is used to
check the predictive power of the model while the B values symbolise the estimates of the

3
model. Base on the coefficient Table 4.13, with p-value less than 0.05 the Beta value for the
Ethnic diversity is low indicating a low impact on the E.P.

4.8 Multicolinarity Test

Model Variables entered Variables removed method
1 ED,GD Enter
a. Dependent Variables EP
b. All request variables entered
Coefficientsa

Model Tolerance VIF

1 GD .900 1.111
ED .900 1.111

Collinearity Diagnosticsa
Model Dimension Eigenvalue Condition Variance proportions
index
Constant) GD ED
1 2.986 1.000 .00 .00 .00
2 .010 17.394 .10 .99 .14
3 .004 27.154 .90 .00 .86

A. Dependent Variable: EP

Table 4.13: ANOVAa

Model Sum of square df Mean Square F Sig.

1 Regression 19.72
3.952 1 3.952 000b
1
Residual 35.669 178 .200
Total 39.621 179
a. Dependent Variable: Gender diversity

3
b. Predictors: (Constant), ethnic diversity
Table 4.12 shows the value Anova test in RA, the value „Df‟ is 1 and the sig value
is .000 which is less than 0.05.it means our Anova test value is also significant.

3
 CHAPTER 5

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

Research findings and the discussion are given in this chapter. In earlier chapter the
descriptive reasoning is summarized. In this section the recommendation of the researcher
are also included.The final conclusion is given at the end of this chapter

5.2 Summary of Descriptive Analysis

This section of study render a sum-up of effect of each independent variable on the
dependant variable which is based on the analysis o which is 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 well structured questionnaire data was collected 180 questionnaires were
distributed to all employees of selected bank branches and the respondents requested for
one week to fill the questionnaires due to load of work. All the questionnaires were filled
and returned and they were all relevant for data analyses. 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 suurounding is
planted, it can lead the organisation to more innovation, development, creativity, capacity
building, productivity, efficiency and effectiveness among team or group members brought
together.

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5.3 Ethnic Diversity and Employee Work Performance

Research findings in previous chapter, it was obvious that ethnicity had no significant effect
on employees` work performance at the banking sector in selected organization. Ethnically
congruous employee are found in these organization.However, On employee performance
even though there was harmony, ethnicity did not seem to have any significant contributory
effect. This study found out that gender, ethnicity, were related with employee
performance.organizations are becoming more flexible, bouncy, speedy to change directions,
and customer centred. In order to be able to meet global challenges and defeat them, with
broad competition, society must employee more and more different types of people. 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, you 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 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.

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5.4 Gender Diversity and Employee Work Performance

From the analysis, it became clear that gender diversity is well bucked up. 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 given the equal opportunity to develop and use their skills,
education and training.
This study found that in the banking industry, there is a positive association between gender
diversity and employee performance. Research has found gender equality in relationships
between men and women, equal treatment, and gender mainstreaming in hiring and
promotion affect employee productivity. In the course of research, it has been shown that
for both men and women, who make up the majority of banks, and provides opportunities
for growth and development in their organization.

5.5 Proposed Areas for Further Studies

This study was limited to the banking industry in hazara division and therefore more
studies research should be conducted to focus on other sectors like the manufacturing
industry, educational sectors and other different organizations. The study also suggests that
further studies should be conducted on the relationship between other aspect of diversity i.e.
age, education and employee performance in other sectors as well as in banks .This study
focused on some selected commercial banks so it is recommend that in future study must be
covered all `kind of banking sector and should talk about on large number of banks.

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 CHAPTER 6
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