WORKFORCE DIVERSITY, HUMAN RESOURCE MANAGEMENT PRACTICES AND ORGANISATIONAL PERFORMANCE

Abstract

The inevitability of workforce diversity and the legal requirement of employment opportunities and affirmative action have driven the adoption of diversity policies and initiatives by management of many organisations. The objective of this study is to examine the influence of workforce diversity on organisational performance and the moderating effects of human resource management practices (HRMPs) as moderating factor in the relationship between workforce diversity and organisational performance. Descriptive survey design was employed and a sample of 464 respondents were drawn, using Yemane (1967) method, from among 3,280 total employees of four selected Multinational Companies (MNCs) in the Foods and Beverage sub sector of manufacturing companies operating in Lagos State Nigeria. Data were generated through structured questionnaire schedule from the management, senior, middle and junior staff cadres of the selected MNCs. The data collected were analysed using both simple and multiple hierarchical regression statistical analysis. Result obtained of hypothesis One indicated that workforce diversity dimensions (WFDDs) insignificantly influenced organisational performance (OP) with coefficient of determination at R2 = 0.0003. When the components of HRMPs were added to the regression model, there was a significant increase in OP 19.2% (Δ R2 =0.192, p = 0.000) since R2 increased from 0.003 to 0.195. This result shows that HRMPs have enhancing effect on the relationship between WFDDs and OP. the study concluded that Organisations may not likely reap the benefits of increasing WFDDs except they effectively manage their internal process, specifically their HRMPs. It was therefore recommended among other things that approach to research of WFD should be holistic investigation of the contextual factors of organisation for their climate which could be discriminatory or non-discriminatory and the corresponding OP which could be negative or positive accordingly.