Abstract

Perceiving discrimination in workplace practices psychologically damages employees and affects their work performance. The current study aims to find differences in perceived diversity practices (i.e., equal representation and developmental opportunities and gender diversity promotion) and the psychological safety of diverse groups in the workplace. Further, the study investigates the relationship of equal representation and developmental opportunities, gender diversity promotion, and psychological safety with employee contextual performance. A sample size of (n = 536) respondents was collected from the private banking sector in India, and was further analyzed using statistical tools, such as factor analysis, correlations, analysis of variance, and regression analysis. The findings indicate differences in gender and tenure diversity regarding “equal representation and development opportunities”, and “gender diversity promotion.” Furthermore, “equal representation and development opportunities,” and “psychological safety” showed a significant negative relationship with the employee contextual performance. Further, no association between perceived “gender diversity promotion” practices and “contextual performance” was found. The novelty of the current research is unlike previous research; the study highlights that excess psychological safety, equality in representation, and development opportunities to have “workforce diversity” make employees aggressively explicit and disengage them from additional work behavior. The findings of the study and application of SPSS software for the analysis of the employee’s perception, behavior, and performance will aid managers and leaders in better decision making for employees; business growth; effective human resource and business management; and for building a healthy, collaborative, and sustainable work environment in the private banks and similar organizations.

Highlights

  • The concept of diversity is highly subjective

  • The current study aims to discover differences in perceptions of diverse groups, based on gender and tenure, regarding their psychological safety and human resource (HR) diversity practices, such as equal representation and developmental opportunities” (ERDO) and gender diversity promotion” (GP)

  • The study aimed to explore the effect of employee perception of diversity practices and Psychological safety (PS) on contextual performance (CP)

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Summary

Introduction

The concept of diversity is highly subjective. Diverse individuals have diverse interpretations of diversity based on the social groups they belong. Past research in diversity is primarily based on objective differences, and perceived differences were not considered, e.g., in [1,2,3]. Perceived diversity is essential to study because different individuals have different perceptions about different compositions, and based on these perceptions, they behave in their immediate environment. Perceiving differences and equality based on different diversity traits affect employee performance, both positively and negatively. Previous research indicated the direct association between diversity and performance [4,5]. It has been speculated that, when employees perceive diversity and differential treatment among a diverse workforce, it affects them psychologically.

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