Effect of Workforce Diversity and Institutional Performance of Public Sector Organizations in Nigeria
Effect of Workforce Diversity and Institutional Performance of Public Sector Organizations in Nigeria
Effect of Workforce Diversity and Institutional Performance of Public Sector Organizations in Nigeria
ORG
Abstract
Workforce diversity can be an important instrument for firms, not to only enhance their organizational performance, but also to
achieve a competitive edge against their business rivals in the business market, attain sustainability and deliver the required
services to customers. This study examined the Effect of Workforce Diversity on Organisational Performance of Selected Public
Sector Organizations in Nigeria. The study adopted a descriptive survey research design in which 2169 respondents were selected
from a population of 4750 staff using a judgmental (purposive) sampling technique. The study relied on a self-developed structured
questionnaire as the instrument of data collection. Using SPSS version 20 software, descriptive statistics (frequency count,
percentage count, mean, and standard deviation) and multiple regression analysis were used to assess the data that had been
collected. The findings of the study revealed that Job-related diversity has a significant effect on employee job satisfaction in public
sector organizations in Nigeria (β=0.441, p<0.05) and that Cultural diversity has a significant effect on employee job satisfaction
in public sector organizations in Nigeria (β=-0.080, p<0.05). Therefore, the study concluded that when a diverse workforce is
trained and managed properly, diversity in the workplace can leverage the strengths and complement the weaknesses of each
worker resulting in synergistic performance, making the impact of the workforce greater than the sum of its parts. Diversity
management benefits organizations by creating a fair and safe environment where everyone has access to the same opportunities
and challenges, thereby displaying their creativity and innovativeness. Based on these findings, the study recommended that
Organizational leaders should formulate laws and policies on equal employment, that ensure the most qualified employees are
recruited, irrespective of their cultural background, ethnic group, and gender in order to encourage creativity and innovation in
the organization.
Keywords: Workforce diversity management, institutional performance, job related diversity, cultural diversity .
INTRODUCTION
Human beings were created and are divided into nations, peoples, male and female, clans. They are also made to live in
different places around the globe. Their creation into these divisions is meant to establish and achieve easy identification and assist
each other. It was not meant to create division among them. Based on this premise, diversity can then be a source for recognising,
understanding and accepting individual differences as they are created by God irrespective of their race, gender, age, class, ethnicity,
physical ability, race, sexual orientation, spiritual practice and so on. It also supports that each individual is unique but also share
some number of environmental or biological characteristics.
Accordingly, people start to exhibit some elements of discrimination and according preference to one another based on the
common attributes such as location, gender, religion, age, and so on.
With the advent of globalization in the 21st century, increased mobility of labour around the world has been evidenced
which necessitated another form of public sector reform which is aimed at enhancing service delivery of public sector institutions.
This reform was centred on workforce diversity, (Gaio & Gonçalves, 2022). Governments started to realize that encouraging public
sector institutions to embrace employees of different backgrounds, competencies and experiences could lead to the creation of
tremendous synergic opportunities that would translate into improved efficiency and effectiveness in the delivery of public services,
Haapakorpi et al., (2022). In addition, many governments also envisioned that adopting workforce diversity policies in the public
sector would facilitate the preservation of fundamental values of public service such as meritocracy, fairness, representativeness
and transparency (Khassawneh & Abaker, 2022).
Workforce diversity management broadly refers to a systematic and planned commitment by the organization to recruit,
reward and promote a heterogeneous mix of employees. Diversity in this format was adopted by different countries, more so in the
Western world. The concept was preceded by other diversity programs like affirmative action and equal employment opportunities.
Diversity is aimed at harnessing these differences which will create a productive environment in which everybody feels valued and
where their talents are fully utilized though which organizational goals are met. Most organizations in their own perspective, adopt
diversity at their workforce or organisation to become more creative and open to change. Increasing and improving workforce
diversity has become an important issue for management in recent years due to the recognition of how the workforce is changing.
Since managing diversity still remains a challenge in organisations, managers tend to learn managerial skills needed in a
multicultural working environment and prepares themselves to teach others within their organizations to value cultural differences
and treat all employees with dignity. For some business leaders and managers point of view, diversity is a big challenge to them
although it knows no organizational boundary and has no limitations.
A major dimension for the understanding of human behaviour on organizations is its corporate culture (Ugwuzor, 2020).
People bring all of who they are to work with. In other words, they bring race, gender, ethnicity, religion, sexual orientation, physical
disabilities, and income status, all of which reflect surface-level diversity; as well as others not so easily seen diversity dimensions.
People think of diversity as differences, but diversity incorporates similarities as well, especially, the things that they have in
common.
The literature has classified diversity into many different types, but not all of them are defined consistently or used
extensively. Most of these classifications or types are based on perception and are dichotomous in nature. The job-related diversity
is based on education and functional elements, and it can influence organizational performance (Simons & Rowland, 2011).
Based on the current realities faced by organizations today, it can be claimed that the workforce diversity can create
opportunities and challenges for the behaviors and functioning of the Nigerian Organizations (Ugwuzor, 2021). Thus, this research
considered some selected public institutions in Nigeria to study the effect of workforce diversity and organisational performance
because such institutions constitute key public sector organizations in the country with diverse workforce.
The work environment is becoming more complex due to globalization and competition which has necessitated the need
for a workforce that is made up of people with varying age, experience, knowledge and backgrounds to maximize competitive
advantage (Ragins & Gonzalez, 2003). According to Childs, (2005) organizations that want to gain competitive advantage must
widen its perspective about workforce diversity and its management, and the leaders in organisations must commit themselves to
ensure that diversity management is a part of its daily operations.
Human resource diversity management strategies have broadened beyond affirmative action and equal employment opportunity
staffing efforts. Additional best practices include establishing a visible diversity advisory committee, conducting mandatory
training, and targeting communications to different affinity group members (Jackson, 2019).
Though our individual differences can promote creativity and increase satisfaction at work nonetheless, it can be the root
of conflict and frustration between groups (Mullins, 2013). Hence, some leaders of organizations have failed to understand how the
workforce interacts with one another as individuals and as groups, and how the behaviour of the workforce can affect both employee
and organizational performance (Ugwuzor, 2021).
Organisational performance is affected when managers fail to understand how to manage the diversities existing among their
employees or are not skilled enough to manage them.
From the empirical search on workforce diversity, it was discovered that only very few researches on workforce diversity
and its relative effect have been conducted in the public sector institutions in Nigeria. The existing empirical studies focused more
on diversity effect on organizational performance or productivity in the private sector with emphasis on financial institutions such
as banks and in the manufacturing firms. There is no much work to study the relationship and effect of workforce diversity and
performance of public sector organisations in Nigeria, which in turn improves the entire image of the public sector and the country.
Therefore, this study seeks to add to already existing literature on workforce diversity by examining empirically and theoretically
the concept of workforce diversity in terms of job-related diversity and cultural diversity and its relationship with organisational
performance (employee job satisfaction and organisational commitment).
.
LITERATURE REVIEW.
organizations are increasingly relying on cross-functional workgroups and project teams. Informational diversity is frequently
associated with disparities in such teams, such as demographic features and deeply held values and beliefs (Harrison et al., 2017).
Spanos, (2022) highlighted that functional expertise and education are part of job-related diversity and it can lead to
organizational performance. Ogbo et al., (2014) aimed to analyze the effect of workforce diversity on organizational performance
in the Nigerian public sector organizations, and they explained that education is an essential tool in the context of managing
workforce diversity and it has a positive effect on organizational profitability.
Alike, Choi et al., (2016) investigated the effect of education diversity on employee satisfaction, innovative climate, and
employee competence. The results of their research revealed that this diversity positively influences all the factors including
innovative climate, employee satisfaction, and employee competence, and these factors will lead to operational efficiency and
enhance innovation. Some studies also provided different results, as Prasetyo et al., (2021) highlighted that individual and group
performance are positively connected to functional diversity, but bonus outcomes are negatively related to it. Finally, educat ional
diversity is negatively related to individual and group performance.
Educational diversity: It is a common perception that people who are educated can perform certain tasks easily, effectively
and efficiently than those who are not. This means an individual who is knowledgeable can perform better tasks that requires skills
and knowledge. Educational background could be seen as the type of formal training or education or even career that a person has
acquired over the years. Hickman, (2018) discovered that different types of education and levels of education expect different
mobility rates. For instance, there are various occupations that are available for different sets of people. The type of occupation that
is available for someone who has gained some years of work experience but does not have a university degree in a course of study
is different from the one who has the required certificate from the university. Based on Daniel findings, a person’s productivity
depends on the level of education he/ she has acquired. Lewis and Sappington, (1993) discovered that organizations and employers
usually refuse to hire employee whom they perceive lack the adequate education, training, knowledge, skills, experience or expertise
to fill up a position within the organization. This signifies that education is very vital to both employers and employees. As such,
without adequate or proper education, individuals cannot get employed or even perform well if they are eventually employed into
the organization.
Professional Diversity: Diversity in profession include people with different occupation or professions such as market ing,
finance, accountancy, manufacturing, production among others,(Choy & Chua, 2019). Heterogeneity in organization bring about
opportunities to share, learn and grow from the journey of others. Without it, limitations arise and knowledge is gained in the
absence of understanding. Diversity, like a changing technology or a global economy is a reality and firms need to employ
individuals from different professions so as to attract and retain diverse clients.
If organization wants to form a lasting business relationship with their client, they must understand the diverse cultures
and decision process of the client, not merely their language. It is a well-known fact that diverse, heterogeneous teams promote
creativity and innovation. It is only when managers fully embrace diversity and maximize the well-being and contribution of
different professions in an organization, can they really understanding its relevance. As such, it can, therefore be concluded that
diverse profession enhances the ability of an organization to survive. From the research conducted by Andrew et al., (2019), she
opined that there is a critical shortage of nursing workforce of African American when compared with the general population. She
suggested that strategies should be designed to encourage an increase in ethnic participation as efforts are directed towards
recruitment, retention, graduation and practice of nurses. Diversity is defined as those corporate agents of a large system that is
heterogeneous in nature and exhibit different traits and functions.
Shutters et al., (2018) proposed a theoretical framework that classifies professions based on their appearance in urban
social networks, occupations or specialization and co-ordination of labour. They concluded that professional diversity is both a
consequence and an enabler of scale dependent system organization and that it is directly associated with higher individual
productivity. In their book, Schlick et al., (2013) proposed that the American workforce is a better reflection of the population with
a significant mix in gender, race, religion, professions and age among others. She opined that for any business to be successful, a
diverse body of talent from different professions is needed to bring in fresh ideas, perspectives and views to their work.
The challenges posed by diversity enable managers to capitalize on the mixture of gender, professions, age to respond to
business opportunities faster and in a more creative manner. Diversity is all about our relatedness, our connectedness, our interaction
and where the lines cross (Prasad, 2017). She opined that the goal of diversity is to create and sustain a work environment where
diversity thrive and plan for the recruitment, selection and retention of talents.
Organizational performance also helps in aligning with their mission and to integrate it into their activities, with all
employees being aware of the impact of organizational performance. The efficacy of an organization can be evaluated using
customer views of those organizations including their customer satisfaction, people management, business operations, learning and
growth and revenue growth. Organizations goal to achieve the desired level of success which is reflected in their social, cultural,
structural, and strategic decisions which are some of the focuses in enhancing performance. An understanding of the history o f
diversity management provides a detailed idea about the diverse workforce in organizations linked with the evolution of the internet.
The workforce diversity is not only challenging for the non-public sector organizations, but the public sector is also concerned about
the implementation and the outcomes of this diversity. Therefore, the managers of both private and public sector organizations must
predict, manage, and understand the complex nature of workforce diversity, (Alabbad et al., 2022). The public sector organizations
are expected to be less adaptive to the diversity policies that can be operationalized in quantitative terms and are legalistic in nature,
(Ashikali et al., 2021). Alabbad et al., (2022) aimed to examine the relationship between different types of workforce diversity and
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organizational performance. They highlighted that workforce diversity including demographic diversity, socio-cultural diversity,
and workforce diversity management plays an important role in organizational performance.
.
2.4Theoretical Framework
Workforce diversity is a very broad field which arguably, has been generalized across many boundaries. That is,
management research, functional categories, social categories and psychological research. Diversity theorists have recently turned
to the well-established field of social psychology for insights into how diversity affects individuals and groups in organizations.
Social psychologists have examined the processes involved with social identity and intergroup relations and diversity scholars
recognized that this research tradition can provide a solid background for emerging theories on workplace diversity.
The theory that is related to this work having reviewed some theories is Social Identity Theory. Social identity theory is a
social psychological theory that is utilized in organizations to obtain high employee performance. Social identity theory gives more
understanding of diversity in terms of understanding the role of group divisions in organization. Tajfel, (1974) argued that social
identity theory gives a deeper knowledge of effect of group behaviours, attitudes and interactions within organization.
According to Tajfel, (1974), social identity theory provides the framework on the management of a group and that each
individual belongs to specific group within institution. Social identity theory asserts that human being comes from a specific society
and with time they attain some social characteristic that makes it easy to categorize in the society according to the identity and
perception. This means the predominant character of individual on how one conducts themselves is a mirror image of the
background society. These social categories can be based on religion, sex, culture, nationality, occupation, race, class and other
variables. Social categorization affects intergroup communication, behaviour, relations and socialization, (Wilson & Leaper, 2022)
These individual characteristics emanating from the world in to a person affect how people relate in the workplace. Since
it is viewed to have significant effect on behaviors, communication and attitude towards certain events or individuals within the
workplace. Communication patterns, behaviours and attitudes in people within work place are determined through the culture and
history in the social group one finds himself. According to Wilson and Leaper, (2022) the theory distinguishes between belonging
to group and individual or shared characteristic of how to behave and who one is. Group behaviour is associated with psychological
processes which includes discrimination, group norm and cohesion within a group. Hence social identity theory plays a major role
in group relationship.
As result of this effect, discrimination might be seen to come from the dominant group which affects the outcome in the
work place. Don-Solomon and Fakidouma, (2021) also noted that intergroup aspect like communication, cooperation, stereotypes
and loyalty within group arises based on the effect of social identity theory. This theorem is fit to the study providing the blue print
of discussion and understanding the concept behind the workforce diversity. Social identity theory hence explains the group think
in gender groups, ethnical groupings and education based grouping. This hinders decision making and cohesiveness affecting the
organization performance. The theory does not have a strong anchor on performance of the organization but explains its effect to
the diversity process.
RESEARCH METHODOLOGY
Based from this constructivism point of view which is quantitatively inclined, survey research design is adopted in this
study. This is because the nature of the study requires a first-hand information for analysis and hence adequate philosophical
grounding. Accordingly, data was collected from the ten selected Nigerian public sector organisations in conformity with the
adopted research design.
The researcher used the survey research design in this study to allow him obtain first-hand information over the data that
is collected and used for analysis in this study. Survey research design is considered appropriate, efficient and flexible because it
enables the researcher to minimize bias and maximize reliability of data that is collected and further used for analysis. Survey
research involves the use of primary instruments like questionnaire, interviews and observations. This study utilizes the instrument
of five-point Likert Scale questionnaire. The questionnaire items were based on the research questions which also agree with the
research objectives and research hypotheses.
The population of the study consists of middle level workers from salary Grade Level 7 to 14 as well as officers on the
Directorate Cadre (GL 15 to 17) because these workers have worked in the system long enough to understand the effect of workforce
diversity on organizational performance.
The researcher used the non-probability sampling method which Anyanwu, (2018) defines as a non-random process by
which the researcher selects his sample on the basis of understanding of the universe, its components and the nature of his research
objectives. The researcher therefore used judgmental (purposive) non-probability sampling techniques in the study. This sampling
technique enables the researcher to conduct the study as one who understands the study population, its components and the nature
of the study objectives.
The statistical software package named SPSS 20.0 was used as software for the analysis. According to the
problem/requirement, statistical techniques such as Pearson Moment Product Correlation Coefficient and multiple regression
analysis in Ordinary Least Square (OLS) were used to test the hypotheses. The frequencies were converted to percentages (%),
enables the researcher to compare the responses meaningfully. Translating frequency counts into percentages showed the number
per hundred compared, using a common base of “100” for comparison.
In order to carry out Pearson Correlation model, the Statistical Package for Social Sciences (SPSS) was used to determine
the outcome. The procedure entails a description of the dependent and independent variables. SPSS was run and the output shows
the constant (bo) coefficient of regression where (β) was obtained. The output shows that P- values the coefficient that resulted
in either rejecting or failure to reject the hypotheses at 5% level of significance.
The P-value therefore indicates the probability of getting result that shows the critical value. The null hypothesis was
rejected if the p-value is less or equal to the critical value. The output of the study equally shows the coefficient determination (R 2),
which measures the proportion of the dependent variable that can be explained by the regression model. The P- value of less than
or equal to critical value if the null hypothesis was rejected, there was a slope between the variables. In this case, linear relationship
which exist when the P-value or significance level is less than or equal to the critical value.
The null hypothesis was rejected if p-value < 0.05, hence the alternative hypotheses was accepted. Also, if p-value > 0.05,
the null hypothesis was agreed upon and the alternative hypothesis was declined.
Model 1
EJS = f (JRD, CD)
EJS = β0 + β1 JRD + β2 CD
Where:
WDM = Workforce Diversity Management
Inst perf = Institutional performance
EJS = Employee job satisfaction
JRD = job-related diversity
CD= cultural diversity
.
Also, from the table 4 of the regression model ANOVA. The F-test p-value is observed to be 0.000 which less than 0.05
(5%) significant level and thus simplifies that all the workforce diversity variables are jointly having a significant impact on
employee job satisfaction.
Note; Regression Model coefficients table 5 above is used to interpret Research hypotheses 1 and 2.
DISCUSSIONS
Two (2) distinct empirical results have emerged from the validation of the hypotheses above. First, it was discovered that
Job related diversity has significant effect on employee job satisfaction in public sector organizations in Nigeria, although is with
positive relationship as shown in table 4. This finding corroborates with the study carried out by Akpakip, (2017) study investigated
effect of workforce diversity on employee performance in Nigerian Banking Industry (A Study of First Bank Nigeria Ltd., Ota
Branch). Descriptive research design was used. Simple random sampling method was used to sample the respondents. Data was
collected using interview schedules and analysed thematically. The study findings showed all aspects of ethnicity diversity used in
the study had a significant relationship with employee performance.
Simons and Rowland, (2011) highlighted that functional expertise and education are part of job-related diversity and it can
lead to organizational performance. Raithel et al., (2021) aimed to analyze the effect of workforce diversity on organizational
performance in the Nigerian public sector organizations, and they explained that education is an essential tool in the context of
managing workforce diversity and it has a positive effect on organizational profitability.
The second empirical evidence from this study also shows that Cultural diversity has significant effect on employee job
satisfaction in public sector organizations in Nigeria. Raithel et al., (2021) examined on ethnic Diversity and Team Performance:
The mediating role of work value diversity and the moderating role of team tenure. The study found no significance between diverse
ethnicity and work value diversity, neither any relationship found between work value diversity and the team performance in the
organizations. Ethnicity also plays an important role in influencing the working of an employee in an organization. It is very essential
for a Human Resource manager to know how people from diverse ethnic group adopt different or similar work values, for
maintaining a harmonious environment in an organization. It also supports other studies It also supports other studies by Lavkush
Mishra, (2022), AL-Galbi (2020), Olufemi et al. (2020), Aina and Atan (2020), Syed Saad Hussain Shah, (2021), Sotudeh Arani
(2021), Valentine and Rosemarie (2021), Akob (2021), Čizmić et al, (2021), who independently concluded that cultural diversity
is positively and significantly related to organizational performance. While Uddin and Arif (2016), Munasinghe and De Alwis,
(2017sss) and Soud, et al. (2020) have a different conclusion that cultural diversity is positively related to organizational
performance.
The findings then suggest, as explained by (Vrontis et al., (2022) that it is important for organizations to adopt workforce
diversity in terms of age, education, skills, gender, and cultures. This adoption can help the organizations in the implementation of
innovative strategies. Ayega and Muathe (2018) considered the organizational culture as part of social diversity and contend that
the topographical area, clients’ diversity, organizational culture, client diversity, and viewpoints of supervisors are important,
distinctive, and compelling variables of social diversity and they can influence the existence of social diversity within an
organization.
CONCLUSION
It is concluded in the study that the magnitude of diversity expressed within the organization’s workforce, poses both as
an advantage, if managed and effectively channeled, and as a disadvantage, if poorly managed or coordinated. In terms of a wide
range of experience, talents, role interpretations, and approaches to work or tasks, diversity broadens the organization's possibilities
and features. In this vein, workforce diversity provides for improved creativity and learning within the workplace. Members from
different groups and backgrounds, when they collaborate, are able to offer a more comprehensive interpretation and approach toward
the organizations problem or challenges. Workforce diversity therefore provides a more elaborate framework enriched with a
number of perspectives, ideas and functional dispositions that when effectively tapped and harnessed by the business, impacts
positively on its level of performance – sustaining collaboration between the groups, enhancing organizational processes and
supporting the accomplishment of the organization’s objectives and goals.
Organizations with diverse employees are better suited to serve diverse external customers in an increasingly global
market. Such organizations have a better understanding of the requirements of the legal, political, social, economic, and cultural
environments. A diverse workforce is a reflection of a changing world and marketplace. Each employee in a diverse workplace
possesses unique strengths and weaknesses derived from their diverse culture, diverse ethnicity, diverse gender, diverse educational
background, and in addition to their individuality. When a diverse workforce is trained and managed properly, diversity in the
workplace can leverage the strengths and complement the weaknesses of each worker resulting to synergistic performance, making
the impact of the workforce greater than the sum of its parts. Diversity management benefits organizations by creating a fair and
safe environment where everyone has access to the same opportunities and challenges, thereby displaying their creativity and
innovativeness.
RECOMMENDATIONS
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