Ethno-cultural diversity and organizational effectiveness: a field study

Abstract

This paper examines the relationship between ethno-cultural diversity and attitudinal and non-attitudinal measures of organizational performance in a field setting. Data were collected from ninety-eight respondents in seven branches of a leading Canadian bank. As compared to culturally homogeneous branches, the culturally heterogeneous branches experienced lower levels of absenteeism and achieved higher productivity and financial profitability despite their lower scores on job satisfaction, organizational commitment and workplace coherence, and higher rates of turnover. These relationships were moderated by age, job tenure, organizational position, children's age, location of education and previous employment, birthplace and education level.