364 Int. J. Business Excellence, Vol. 28, No.

3, 2022

Investigating the effects of workplace diversity on

employee performance in higher education
institutions

Deepti Sharma
Uttaranchal University,
Dehradun, India
Email: deepti.sharma.sama@gmail.com

Sachin Kumar Srivastava*

IILM Academy of Higher Learning,
Lucknow, India
Email: drsachinksrivastava@gmail.com
*Corresponding author

Abstract: Globalisation demands institutions to grow in heterogeneous

workplace where each and every employee will perform with their fullest
potential. Nowadays, if workplace diversity is managed properly it may lead to
higher organisational performance in terms of values, perspectives, creativity,
innovative, and if not managed properly, then it may lead to greater conflicts
between groups which result into higher turnover. Workplace diversity is about
acknowledging differences and adapting work practices to create an inclusive
environment and it has been expected to be an important part of occupational
life in the corporate world. This study aims to investigate the effects of
workplace diversity on employee performance in their institution. This also
examines workplace diversity by using demographic variables. The implication
of the study will help policymakers to view workplace diversity as an important
facet in university administration along with the legal provisions. Moreover, the
result also reveals that workplace diversity does provide many thereby
increasing employee performances.

Keywords: workplace diversity; gender diversity; age diversity; ethnic

diversity; employee performance.

Reference to this paper should be made as follows: Sharma, D. and

Srivastava, S.K. (2022) ‘Investigating the effects of workplace diversity on
employee performance in higher education institutions’, Int. J. Business
Excellence, Vol. 28, No. 3, pp.364–374.

Biographical notes: Deepti Sharma is an Associate Professor Uttranchal

University, Dehradun. She has been in the profession since the last 15 years
and has contributed significantly. She has qualified with UGC-NET in the
subject Management in 2003. Her areas of research include workplace
diversity, employee engagement, stress management, individual well-being,
and corporate governance.

Sachin Kumar Srivastava is an accomplished professional and Professor in the

field of Marketing and sales. He received his BE and MTech in Mechanical
Engineering and MBA with major in Marketing and PhD in Public

Copyright © 2022 Inderscience Enterprises Ltd.

 Investigating the effects of workplace diversity on employee performance 365

Administration. He started his career in 2005 with Bharti Tele-venture services

as Sales Executive. Later he moved to academics as Lecturer. In 16 years of his
career, he worked as a Lecturer, Senior Lecturer, Associate Professor, Professor
and Dean of Management. Currently, he is working as a Professor IILM
Academy of Higher Learning, Lucknow, India

1 Introduction

As economic globalisation continues to develop, the basic idea of managing diversity

continues to expand too so as to include people from diverse cultures and situation. This
has become one of the biggest challenges for organisation in adapting the policies and
practices of attracting people who are different. The expression we use for describing this
challenge is ‘workforce diversity’. Workforce diversity refers to the way in which people
in an organisation are different from and similar to one another. Diversity is about
ensuring that every single person comes to work every day. It is all about embracing and
harnessing the diversity of thoughts, background, experience, education and not just the
traditional aspect of diversity (Robbins et al., 2008). And if the organisations managed
them perfectly it will leads to organisation productivity and enhance the performance of
employees. Employee performance is defined as the way in which an individual meet the
standard goals set by the organisation and effectively and efficiently utilises the available
resources and accomplishes his task successfully (Tinofirei, 2011). In India, various
legislations have been introduced by the government for the purpose of securing
economic benefits and shaping the employee performance in any organisation. Such
legislations have encouraged or some-how compelled organisation to embrace diversity
which may or may not have a great influence on employee behavioural outcome like
productivity and performance. Like any other organisation higher education institutions
also focus on workforce diversity they recruit and retain people from diverse groups like
gender, age, education, ethnicity, etc. HEI play a vital role in building the future
generation of nation like their perceptions, personality, attitude, values and ethics which
not only encourage them for their own betterment but also uplift the society. If they learn
from the more diverse workforce they get more experience about diversity. They accept it
positively, feel comfortable and respect people from different background. Thus, the
present study tries to investigate the effects of workforce diversity on employee
performance in higher education institutes by considering the variables of age diversity,
gender diversity, ethnic diversity and educational diversity on employee performance.

2 Review of literature

In order to gain competitive advantage over its competitors, organisation must be

encouraged to adopt the management tool of workforce diversity so as to offer a best
quality goods and services to the society. It is a multi-dimensional phenomenon that
encourages organisation to hire employees from different ethnic and cultural background.
Workforce diversity refers to the inclusion of people from a different ethnic
background social, and cultural within the company (Kundu, 2001). The term diversity
represents how individuals perceive others, recognising individual differences on any
366 D. Sharma and S.K. Srivastava

personal aspect (Ragins and Gonzalez, 2003) and diversity management seeks to harness
those differences in the pursuit of more productive environments (Kandola and Fullerton,
1998). Performance is said to be positive for both the employees and the organisation
itself (Osabiya, 2015). Employees who are more engaged are likely said to be more
productive which may ultimately reduce the high turnover (Hassan, 2013). Mwatumwa
(2016) argues that gender diversity determines a positive relationship between employee
and organisational performance. This corresponds with Weiliang (2011) who holds a
resource based-view of a firm, stating that gender diversity at the management and
organisational levels can provide a firm with better competitive advantage. Ethnicity
influence not only related to the performance of an individual but also they influence
organisation productivity. Dastane and Eshegbe (2015) argued that an ethnic-diverse
workforce may be beneficial and disadvantageous to organisations. Most of the
organisations are taking initiatives in implementing educational diversity training to
encourage employees to connect and work efficiently with others so that goals of
organisations are met effectively. An individual’s educational background can be a
significant indicator of their knowledge, skills, and capability (Tracy and David, 2011).
According to Kunze (2013), age diversity is defined as the differences in age distribution
among employees and is used to describe the composition of the organisation or the
composition of workgroups within an organisation. Boehm and Kunze (2015) argued that
an age heterogeneous workforce yields a host of multiple skills, intellectual styles,
morals, and preferences that may result in increased productivity.
India, largest democracy and the second most populous country in the world with an
estimated population of 1.35 billion (World Bank, 2013), is one of the oldest and richest
civilisation being extremely diverse and multi-faceted in its history, culture, and
institutional frameworks (Thite, 2011). The country addresses a range of diversity issues,
including age, education, religion, caste, socially disadvantaged (e.g., SCs, STs and
OBCs), gender, language, regional background, ethnicity, and disability (Kundu, 2003;
Venkata Ratnam and Chandra, 1996). India is characterised by diversity in gender,
income, language, religion, culture and social status. To provide equality of status and
opportunity in education and employment, the principle of reservation was adopted so
that the female or underprivileged classes could come at par with so-called male or
privileged classes.1

3 Objectives of the study

1 To investigate the relationship between gender diversity and employee performance

in higher education institutes in Lucknow.
2 To determine the relationship between age diversity and employee performance in
higher education institutes in Lucknow.
3 To analyse the relationship between ethnic diversity and employee performance.
4 To examine the relationship between educational background diversity and employee
performance in higher education institutes in Lucknow.
5 To investigate the impact of diversity on employee performance based on various
demographic attributes.
 Investigating the effects of workplace diversity on employee performance 367

4 Hypotheses of the study

1 There is a relationship between gender diversity and employee performance.

2 There is a relationship between age diversity and employee performance.
3 There is a relationship between ethnic diversity and employee performance.
4 There is a relationship between educational diversity and employee performance.
5 There is a significant impact of diversity on employee performance based on various
demographic attributes.

5 Methodology

The study is based on descriptive survey design. The target populations for the study are
academic and non-academic staff of University of Lucknow. The 27-tems workforce
diversity questionnaire (WDQ) adapted from Elsaid (2012) was used to measure the
perceptions of employees on workforce diversity. It consists of four subscales which are
gender diversity, age diversity, ethnic diversity and educational diversity. The 10-itmes
employee work performance questionnaire (EWPQ) adapted from Bekele et al. (2007)
was used to assess the level of employee performance. Convenience sampling technique
was used in collecting data among the 100 academic and non-academic staff of
University of Lucknow, out of which 65 questionnaires was duly completed and reverts
back. Data obtained from selected respondents were analysed by using descriptive
statistics such as frequencies of response, percentages and hypothesis has been checked
by Karl Pearson correlation and one way ANOVA.

6 Result and discussion

Table 1 shows the demographical characteristics of the respondents. From the total
sample of respondents there are 62% female and 38% male which shows that large
number of female participation in this study. These findings agree with Kossek et al.
(2005) findings who found out that from the entire workforce across the world, 54% are
women. 62% are academic and 38% are non-academic staff are the participant of study.
8% of respondent are above the age of 50 followed by 46% (30–39 of age) and 23% in
between the age of 18–29 and 40–49. The result shows that the university has an aged
diverse workforce. This is in accordance with Kunze et al. (2011) who argued that age
diversity has become an inevitable feature of many organisations.
Table 1 also depicted that majority of respondents having PhD (77%). A study
conducted by Hoff (2014) found that, organisations usually reject hiring people with
insufficient educational qualifications. This may explain the reason why the University of
Lucknow have more PhD level staff as compare to post-graduate and graduate staff. 46%
respondents having up to 5 years of work experiences, 31% having more than 15 years
and 15% having 11–15 years of work experience.
368 D. Sharma and S.K. Srivastava

Figure 1 Demographical characteristics of respondents (see online version for colours)

Objective 1: To study the relationship between gender diversity and employee

performance.
H1 There is a relationship between gender diversity and employee performance.
Outcomes: There is a moderate and significant relationship between gender diversity and
employee performance (r = 0.77). A moderate relationship in this scenario means that
when gender diversity increases, employee performance also increases.
Table 1 Correlation between gender diversity and employee performance

Gender diversity Employee performance

Gender diversity 1
Employee performance 0.77 1

For the determination of level of gender diversity percentage distribution (Figure 2) has
been used. 54% respondents agreed that university is not follow the discrimination policy
while hiring and recruiting personnel against 46% disagreed on the same fact.
Almost 62% respondents rely on the fact that university is treated them fairly
regardless of the gender. Universities will always encourage and provide opportunities
for growth and advancement to their employee’s while asking for these facilities are
exists for women 46% were agreed, 31% neutral and 23% disagreed about the statement.
Same percentage (38%) of employees agreed and disagreed on the fact that women are
involved in decision making as men against 24% who shows neutral behaviour. 54%
respondents indicate that the performance criteria for success are not expected to be
higher for men than for women. Majority of respondents (77%) having the positive
attitude towards gender diversity. They feel comfortable while working with the more
gender diverse workplace.
Objective 2: To study the relationship between age diversity and employee performance.
H2 There is a relationship between age diversity and employee performance.
 Investigating the effects of workplace diversity on employee performance 369

Outcome: There is a moderate and significant relationship between age diversity and
employee performance (r = 0.55). A moderate relationship in this scenario means that
when age diversity increases, employee performance also increases.

Figure 2 Frequency distribution of respondents towards gender diversity (see online version
for colours)

Table 2 Correlation between age diversity and employee performance

Age diversity Employee performance

Age diversity 1
Employee performance 0.55 1

Figure 3 Frequency distribution of respondents towards age diversity (see online version
for colours)

While analysing the dimensions of age diversity 62% respondents disagreed on the
opinion that their seniors include all members at different ages in problem solving and
decision making. Usually age differences cause conflict among employees 54% agreed
and 38% disagreed on the fact. Equal percent of respondents agreed and disagreed on the
fact that at workplace they experienced lack of bonding with people of different age
group. Majority of respondents are having positive attitude towards the age diversity at
their workplace.
370 D. Sharma and S.K. Srivastava

Objective 3: To study the relationship between ethnic diversity and employee

performance.
H3 There is a relationship between ethnic diversity and employee performance.
Outcome: There is a moderate and significant relationship between ethnic diversity and
employee performance (r = 0.61). A moderate relationship in this scenario means that
when ethnic diversity increases, employee performance also increases.
Table 3 Correlation between ethnic diversity and employee performance

Ethnic diversity Employee performance

Ethnic diversity 1
Employee performance 0.61 1

Figure 4 depicted the frequency distribution of dimensions of ethnic diversity. 54%

respondents agreed on the fact that university is not using any discrimination policy while
hiring and recruiting minorities. 38% depicted their opinion that there are no such options
available for growth and advancement for minorities and 38% shows neutral response.

Figure 4 Frequency distribution of respondents towards ethnic diversity (see online version
for colours)

54% respondents reported that the University was not concerns about the employee’s
customs, cultures, and values. People from different region spoke different language and
sometime may create conflict but employees of University of Lucknow (62%) agreed that
different languages that are used to communicate do not create problems among them.
46% disagreed and 38% agreed that at work, they developed low self-esteem due to their
ethnicity. Almost 46% respondents reported that their seniors were not includes all
members of different ethnicity in problem solving and decision making and majority of
respondents feel comfortable and had positive attitude towards the people from different
ethnicity
Objective 4: To study the relationship between educational diversity and employee
performance.
H4 There is a relationship between educational diversity and employee performance.
 Investigating the effects of workplace diversity on employee performance 371

Outcome: There is a moderate and significant relationship between ethnic diversity and
employee performance (r = 0.25). A moderate relationship in this scenario means that
when educational diversity increases, employee performance also increases.
Table 4 Correlation between educational diversity and employee performance

Educational diversity Employee performance

Educational diversity 1
Employee performance 0.25 1

While assessing dimensions of educational diversity 46% respondents agreed that

university recruitment policy is not based on educational background. Although without
proper analysis of academic background candidate was not even call for interview. 38%
shows neutral response while asking for paid leave and 54% disagreed. 62% respondents
reported that the difference in education background does not encourage conflict.

Figure 5 Frequency distribution of respondents towards educational diversity (see online version
for colours)

At workplace, 62% respondent does not experience lack of confidence and 30%
experience lack of confidence due to their education background. 46% respondents
disagreed that seniors includes all members at different education level in problem
solving and decision making. On the fact that University gives equal treatment when it
comes to the diversity of education background respondents shows (54%) neutral attitude
and 38% disagreed on the same.
Objective 5: To determine the impact of diversity on employee performance based on
various demographic attributes.
H5 There is a significant impact of diversity on employee performance based on various
demographic attributes.
Outcome: To determine whether any of the differences between the means of gender,
age, experience and academic level are statistically significant, compare the p-value at
significance level to assess the null hypothesis. The null hypothesis states that the
population means are all equal. Usually, a significance level of 0.01 works well. A
significance level of 0.01 indicates a 1% risk of concluding that a difference exists when
there is no actual difference. Table 8 shows the impact of diversity on employee
performance based on gender, age, experience and academic level.
372 D. Sharma and S.K. Srivastava

Table 5 ANOVA table for selected attributes

Dimensions df F cal F tab Null hypothesis Results

Impact of gender on employee 9 2.11 5.19 Accepted All population
performance means are equal
Impact of age on employee 19 1.96 3.05 Accepted All population
performance means are equal
Impact of educational 14 0.68 3.47 Accepted All population
qualification on employee means are equal
performance
Impact of experience on 19 1.98 3.05 Accepted All population
employee performance means are equal

As concern to the impact of diversity on employees performance based on gender/

age/ethnicity/educational qualification and experiences the table values in all cases are
more the calculated values so, null hypothesis are accepted and conclude that all
population means are equal. Therefore, it concludes that the impact of diversity on
employee performance due to gender/age/ethnicity/educational qualification and
experiences is significant.

7 Conclusions and recommendations

The study examined the relationship between workforce diversity and employee’s job
performance in University of Lucknow which shows the moderate relationship among
gender/age/ethnicity/educational qualification and employee performance. A moderate
relationship means that when gender/age/ethnicity/educational diversity increases,
employee performance also increases in a moderate form.
Equal percentage of respondents agree/disagree on the fact that women are involved
in the decision making as much as men. Almost 62% of disagreed on the fact senior
include all members at different age in problem solving and decision making. 76% of
respondents are having positive attitude towards the age and ethnic diversity. 38%
disagree, 38% neutral and 24% agrees on the fact that opportunities for growth and
advancement exist for minorities in university. 54% reported that university is not
concerned about the employee customs, cultures, and values. 85% consider their
performance is better than the average employee. Majority of respondents either
disagreed or neutral on the fact that University gives equal treatment when it comes to the
diversity of education background. Majority of respondents had positive attitude towards
gender diversity, age diversity, ethnic diversity and education diversity. They feel
comfortable while working with the more diverse workplace.
The present study also depicted that the entire population regardless of gender/
age/ethnicity/educational qualification and experiences the entire participants perceive
the impact of diversity on their performance. University should continue to give both
male and female equal opportunities during recruitment and other areas like growth and
opportunities as it is shown in this study that gender diversity positively influence
employee performance. Group training and team building initiative enhances mutual
cooperation, minimise role conflicts and increases sharing among the diverse work force.
 Investigating the effects of workplace diversity on employee performance 373

Moreover effective communication not only enhances the information sharing among
employees but also increases organisational effectiveness.
It must also be noted that the findings of this study will reflect the perceptions of the
employees of LU involved, therefore not be assumed to be universally applicable to all
university. The study also suggests that further studies should be conducted on the
relationship between workplace diversity and employee performance in other sectors as
there was found to be moderate relationship in the higher education sector.
The results were based on the comparison of the performance of an individual
employee and not based on team performance. Therefore, the study recommends future
research to go deeper in this area.

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Notes
1 https://www.thehindubusinessline.com/opinion/addressing-issues-of-workforce-
diversity/article9964037.ece (accessed 2 January 2019).