Does Employee Performance Mediate the Effect of Workforce Diversity on Organisational Performance? Evidence from Small and Medium Enterprises (SMEs) in the Buea Municipality.

Abstract

The objective of this study was to examine the mediating role of employee performance in the effect of workforce diversity on organisational performance. Data used was collected through questionnaires from 306 SMEs operating in the Buea Municipality. Four variants of workforce diversity were retained (age, gender, ethnicity and educational background). Data was analysed using the Baron and Kenny (1986) approach of mediation and the MacKinnon et al. (2002) extension in ascertain the existence of mediation. The findings show that employee performance mediates the effects of gender, age, ethnic and educational background diversities and organisational performance. This mediation is full for gender and educational background diversities, and it is partial for age and ethnic diversities. The study recommends that the management of SMEs should develop a culture of workforce diversity in terms of gender, age and educational background in staffing and managing their human resources.