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Full Project – CULTURAL DIVERSITY AND ITS IMPACT ON ORGANIZATION PERFORMANCE

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ABSTRACT

In work environments, people of different cultures and backgrounds have to work together, so they are able to interact and communicate on a daily basis. This can be exciting and interesting, yet it also brings about frustrations and uncertainties at times. It therefore becomes essential for any progressive organization to continuously seek ways to embrace and address these changes. Therefore, the study examines the effects of work place diversity on organizational performance of teaching and non-teaching staff of Babcock University. The study adopted survey research design. The study adopted a simple random sampling technique to sample the employee from the population. The data for the study were collected through the use of questionnaires. The data collected were analysis using descriptive statistics and regression which were use to test the effects of work place diversity on organizational performance. All the analyses were carried out using SPSS. The result of the analysis reveals that employee culture has significant effect on organisational productivity; employee personality has effect on organizational profitability and employee behaviour has significant effect on organisational efficiency. The recommend that the environment and top management should be equally supportive for both teaching and non teaching staff otherwise, the Organizational Performance can be declined. The study concludes that work place diversity has effect on organizational performance.

CHAPTER ONE

INTRODUCTION

1.1. Background to the Study

Globally, in the business world of today, most businesses and organizations are faced with several problems as relating to their organizational or business performance. One of such problems is in the area of human management which refers to the utilization of human resources effectively and efficiently in order to achieve an organizations goals and objectives. An organizational performance lies on the overall efforts of its employees, that is, how well an organization manages its workforce towards productivity and overall business performance.

In USA, there is difficulty blending multiple personalities into a cohesive and unified team. This can be an enormous issue, regardless whether the team is part of the executive suite, special project team in an R&D lab, or an operating team in a production facility. People’s personalities vary widely, and the diversity of backgrounds, opinions, views, and experiences can cause challenges for teams. This creates a unique set of potential issues and opportunities. If an organization can get people to come into alignment to support common objectives, a diverse team of leaders can produce amazing results, take on the demands of customers, and meet the threat of competitors. However, if organizational leaders stay in their silos, protect their own “turf,” fail to share information, refuse to collaborate on shared problems, or lack the ability to think with an entrepreneurial mindset, the organization will under-produce, (Zammuto, 2012).

In Europe, some organizations have a lot of hardworking people who have good intentions. However, despite their experience in the service industry, their technical talent and the subject-matter expertise that many leaders bring to the table, creating a high-performance organization is often still out of reach, (O’Sullivan, & Lazonick, 2006). Sometimes leaders are aware of their behavioral shortcomings; in other cases, they are blind to their leadership deficits. People inside the organization are often afraid to candidly say what they think, and helping enormously successful leaders with their Achilles heels can be tricky. Leading and managing an organization is a complex task that requires a unique mix of skill leaders who have to utilize their natural strengths, they also have to search relentlessly for ways to close their own performance gaps and improve their behavior. Without continuous improvement, an organization’s capabilities will be severely limit In short, if leaders don’t constantly raise their game, they will suck all the energy and employ engagement out of an organization. Leaders need to be constantly aware of and working on their personal opportunities for improvement.

In Africa, organizations are faced with lack of poor communication and feedback. There seem to be two extremes in this area: either people do everything in their power to avoid confronting others and holding them accountable or they relish any opportunity to chew people out, belittle them, and crush their spirits. Many organizations in Africa have countless leadership teams which the number-one problem was a lack of honest, constructive, and open dialogue about team members’ practices, styles, skills, or behaviors. Without a culture of openness, feedback, and coaching, organizations will struggle to grow. Many organizational teams try to muddle through this somehow enduring the bully or trying to guess what other want and need from them. People often tell others that they fear reprisal or retaliation if they open up, but the reality is that leaders can’t execute on their strategies, lower costs, or effectively launch new processes or services when people fail to communicate with constructive candor, so this is an issue that must be overcome, (Boldman & Deal, 2003).

In West Africa, as technologies change practically at the speed of light, it’s vital for organizations in the service industry to innovate or be left behind. However, many organizations started their careers and businesses before many of these technologies even existed! Organizations can be vital for integrating new technologies, in particular mobile app development, and cloud computing. Lack of direction is one of the most common organizational issues.

According to Aluko (2003), building a solid organization in Nigeria takes hard work and a keen awareness of the culture and environment that exists in a business. Most executives are very busy people; a lot of things vie for their attention. Market conditions can change fast in business world and demand huge portions of leader’s time. Unfortunately, while they’re busy focusing on the many necessary operational distractions, many managers take their eye off the teamwork ball. This means that communication suffers and leaders get preoccupied and fail to recognize people, celebrate progress, build the talent pipeline, or invest time reviewing processes, practices, and better ways of working across functions. People then become disengaged, create marginalized, and lose focus and commitment in the organization.

1.2. Statement of the Problem

The 21st century managers are saddled with the responsibility of both leading employees and responding to the needs of customers who are more ethnically and culturally diverse from each other. Leaders in both the public and the private sectors are focusing more attention on the issue of diversity. Whether the goal is to be an employer of choice, to provide excellent customer service, or to maintain a competitive edge, diversity is increasingly recognized and utilized as an important organizational resource. Leaders and managers within organizations are primarily responsible for the success of diversity policies because they must ensure that the policies are effective. The most important issues of cultural diversity are to address the problems of discrimination in terms of culture, personality, and behaviours.

The main purpose of this study is to examine Cultural diversity and its impact on organization performance. Various factors that enhance the relationship between Cultural diversity and its impact on organization performance as mediators are also explored. Employee culture, employee personality and employee behaviour are taken as the dimensions of diversity.

The discriminatory attitude of some employees, individual identity, lack of cooperation amongst employees has been extended by workers in same diverse organization beyond limits, which dampens morale with negative performance index. This is because departmental goals are pursued more at the expense of broad organizational goals and objectives. Corporate profitability dwindles because the core values of diversity are not properly harnessed (Salami, 2010). Countless studies have been conducted on cultural diversity. This study is provoked by the gap left unfilled by a substantial number of research works that has been conducted on cultural diversity and its significance on the organizational performance.

Studies undertaken by Irungu (2007), Awino (2007) and Sifa (2009) have all treated organization performance as a dependent variable. The findings of each of these studies indicate that performance is a function of a combination of factors. Irungu’s (2007) study revealed that there is a relationship between employee personalities and various indicators of organizational performance. Awino’s (2007) study focused on the effect of employee diversity on corporate performance while Sifa’s (2009) study focused on the influence of employee team behaviors and organization performance. Both of these studies indicated that organizational practitioners continue to be faced by a lot of employees’ problems that have their roots in the diversity, which ultimately impede progress towards achieving high performance. Ahiauzu (2000) states that, most of the literature on cultural influences on organizational performance and behavior is of poor quality consisting of anecdotes and prescriptions based on western experience and imagination

The above mentioned negative effect of cultural diversity in workplace is prevalent to organizations today, but requires solutions for organizations to perform optimally. Hence, this study investigated the impact of Cultural diversity and its impact on organization performance using Babcock University Ilisan Remo, Ogun State.

1.3. Objectives of the Study

The general objective of this study is to investigate how cultural diversity affects organizational performance in Babcock University, Ilisan Remo, Ogun State, Nigeria. However, the following sub objectives are considered to:

assess the effect of employee culture on organizational productivity;
determine the effect of employee personality on organizational profitability;
examine the effect of employee behavior on organizational efficiency; and
determine the combined effect of workplace cultural diversity on organizational performance.

1.4. Research Questions

Based on the objectives of this study, the following research questions are posed;

How does employee culture affect the organizational productivity?
What is the effect of employee personality on organizational profitability?
How does employee behavior affect organizational efficiency?
What is the overall effect of workplace cultural diversity elements on organizational performance elements?

1.5. Research Hypotheses

Based on the objectives and research question used, the following hypotheses were developed in order to make valid conclusions on the subject matter.

Ho1: Employee culture has no significant influence on organizational productivity level.

Ho2: Employee personality has no significant effect on organizational profitability.

Ho3: Employee behavior has no significant influence on organizational efficiency.

Ho4: The combined effect of workplace cultural diversity has no significant effect on organizational performance.

1.6. Operationalization of the Variables

The dependent variable is organizational performance, represented by productivity (PROD), profitability (PROF), efficiency (EFF) and workplace cultural diversity (WCD). On the other hand, cultural diversity, being the independent variable, is proxied by culture (C), personality (P), employee behavior (EB) and organizational performance elements (OPE).

Y= f (y1, y2, y3, y4)

Y = Organizational Performance (OP).

y1 = Productivity (PROD).

y2 = Profitability (PROF).

y3 = Efficiency (EFF).

y4 = Workplace Cultural Diversity (WCD).

X= f ( x1, x2, x3, x4)

X= Cultural Diversity (CD).

x1= Culture (C).

x2= Personality (P).

x3= Employee Behaviour (EB).

x4= Organizational Performance Elements (OPE).

The four specific objectives are operationally expressed as:

Assess the effect of employee culture on organizational productivity.

y1= f (x1)

y1= b0 + b1x1 + u

Determine the effect of employee personality on organizational profitability.

y2= f (x2)

y2= b0 + b1x2 + u

Examine the effect of employee behavior on organizational efficiency.

y3= f (x3)

y3= b0 + b1x3 + u

Determine the combined effect of workplace cultural diversity elements on organizational performance elements

Y4= f (x4)

Y4= b0 + b1x4 + u

1.7. Scope of the Study

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