C OMPARISON O F W ORK F ORCE D IVERSITY

I N P UBLIC A ND P RIVATE S ECTOR

ARSLAN NAZIR

arse113353@gmail.com

(Student of Lahore Business School)

MUHAMMAD SAMI-ULLAH

samiullah.hanif@gmail.com

(Student of Lahore Business School)

FAHAD MUNIR

f4faddi@hotmail.com

(Student of Lahore Business School)

WAJIHA KAUSAR

jiakhalid30@gmail.com

(Student of Lahore Business School)

AOUN HAIDER

angeleye.aoun@gmail.com

(Student of Lahore Business School)

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A BSTRACT:

We have done research on comparison of work force diversity in public and private sector. It is the way to check the employee performance in the two different scenarios of private sector and public sector organizations. Diversity encompasses acceptance and respect. It means understanding that each individual is unique, and recognizing our individual differences. These can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies. We formulated three objectives which include ethnicity, performance and gender. We have designed questionnaire which includes close ended questions. The sample size is one hundred and fifty and numbers of questions are seventeen. Result tells that employee performance effects the work environment in the organization.

I NTRODUCTION:

Our study is to check the employee performance in the two different scenarios of private sector and public sector organizations in this we have found two was to analyze it is the diversity in the form of gender and in the form of ethnic groups.

We have read a couple of articles to check the previous studies on these topics of workforce diversity.

The concept of diversity encompasses acceptance and respect. It means understanding that each individual is unique, and recognizing our individual differences. These can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies. (Dogra 2010)

The present paper addresses this gap in the literature by presenting the results of a controlled experiment on the effects of ethnic diversity. Since organizations are moving increasingly to team-based job design, we chose the small group as our level of analysis. The specific task we examine is idea generation because it is typically a first step in group problem solving, and a task that has been shown to be affected by heterogeneity of group member characteristics. Hence, this paper presents an experimental investigation of ethnic heterogeneity effects on idea generation in small groups.(McLeod, Lobel et al. 1996)

Racial diversity displayed a curved positive relationship to intermediate firm performance at low or high levels of diversity. Racial diversity also exhibited a positive correlation to

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long-term firm performance. Environmental instability would negatively moderate this relationship i.e., the U-shaped relationship between firm performance and racial diversity would be stronger in stable environments than in unstable environments.(McMahon 2011)

At the same time, formal literature on the corporate case dispute is rather thin, especially within the European context. As a result, the corporate case argument for gender diversity, suggesting that diversity translates into better decisions and ultimately in better products, is rarely made on the basis of firm, bookish research. (Marinova, Plantenga et al. 2010)

As in other organizations, women in universities are greatly outnumbered by men in Positions of formal power, authority, high status and high income. To remedy this situation, Employers and HR managers often apply policy measures, like gender-neutral hiring and selection procedures and preferential treatment of women. Given the popularity and the costs of implementing a gender equality policy. (Timmers, Willemsen et al. 2010)

This study has three primary goals. First, we examine effects of intra-organizational ethnic demography on lack of respect in service interactions second; this research goes beyond examining organizational consequences of intra-organizational diversity to examine the consequences of the degree to which organizational demography represents the demography of directly served stakeholders. Third, extending previous theoretical rationale, we reason that lack of respect toward service recipients can obvious when demographic characteristics are not aligned and that this incivility impedes organizational success.(King, Dawson et al. 2011)

O BJECTIVES

1) To check the effect of Ethnic diversity on Employee performance in public and private sector.

2) To check the effect of Gender diversity on Employee performance in public and private sector.

3) To check the effect of diversity on Employee performance in public and private sector.

L ITERATURE R EVIEW O F P REVIOUS Y EARS

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The purpose of the research is to study literature on different work force diversity dimensions of Pakistan. The objective of this conceptual analysis is to discuss methodology, findings and identify limitations in research work under review and point towards unresolved issues, if any that can pave the way for further research in the field of work force diversity management in Pakistan. Workforce of Pakistan is not delivering effectively, which, among other factors, may be attributed to lack of desired level of diversity in terms of age, culture and gender. Corporations are experiencing problems due to the absence or in-adequate application of diversity management policies while maintaining relationship with different stakeholders (including colleagues, customers, suppliers etc). Establishing a clear differentiation between the public and private sector organizations in Pakistan is also an area lacking due research coverage in the past. Research gap is evident from the fact that not a single study has been conducted to analyze and compile a critical review of workforce diversity literature in Pakistan.

Theoretically, the workplace diversity literature espouses three different theoretical frameworks for the examination of the possible effects of workplace diversity (Williams & O’Reilly 1998). The first is social categorization, which, according to Turner (1987) describes the categorization of people based on salient attributes like gender, ethnicity or age, resulting in stereotyping on the basis of these differences. The second is similarity/attraction theory, which asserts that similarity on salient and non-salient attributes like race or values increases interpersonal attraction and attachment (Berscheid & Walster, 1978). The third is information and decision making theory, which examines the impact of distribution of information and expertise on work-teams.(Omankhanlen and Ogaga-Oghene 2011)

Researchers also pointed out that female employee are facing more discrimination than their counterparts, in private organizations as compared to public sector. They came to this argument based on results of structured survey of more than 500 male and female employees working at various levels (both in public and private sector) in few districts of Sindh province. It was also discussed that this type of discrimination negatively effects satisfaction and motivation of employees and positively affects the level of stress among the staff.(Idrees, Abbasi et al. 2013)

The net effect on productivity will only be positive if these gains outweigh additional communication costs (and difficulties related to emotional conflicts) incurred by a more diverse workforce. Conclusions regarding the optimal workforce mix are somewhat different if one follows the organizational demography or social comparison literature. The former (see e.g. Pfeffer, 1985) stresses the importance of social similarity (and thus of inter-personal attraction) to stimulate interaction, communication and cohesion among

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the workforce. Given that features such as age, education or gender help to explain similarity, diversity along these dimensions is expected to hamper job satisfaction, communication and firm performance. The net effect on productivity will only be positive if these gains outweigh additional communication costs (and difficulties related to emotional conflicts) incurred by a more diverse workforce.(Garnero, Kampelmann et al. 2014) Religious organizations have also seen how important it is to value and manage diversity to adapt their messages to other cultural identities. They are probably the ones that "have been in the forefront of documenting, studying and learning to manage cultural differences"(Wentling and Palma-Rivas 1997)

The organization should create such a working environment as will increase the motivation, satisfaction, and commitment of diverse people. Performance standards must be clearly and objectively established, effectively communicated, and used on objective criteria without any bias. Identify desirable and undesirable behaviors that must be based upon performance feedback discussions involving a diverse workforce. (Ongori and Agolla 2007)

In both public and private sector organizations, the impact of education profile of both genders is almost the same when it comes to the issue of gender discrimination. Moreover, female employees were perceived to be victim of discrimination more than the male employees in both the sectors. (Idrees, Abbasi et al. 2013)A perception of interpersonal incompatibility is labeled as relationship conflict and it typically includes tension, annoyance and animosity among group members (Hasan, Muhammad and Imran, 2009; Jehn, 1995;Simons, Peterson, 2000). It is a related to difference of relationship between team members. It is infertile, difficult to manage and likely to leave people with more pressures and less ability to manage them. Normally, it occurs between frontline workers and their supervisors. It can reduce creativity, innovation, quality, and performance of employees and organizations (Jehn, 1994, 1995; Amason, 1996; De Dreu and Van de, 1997; Friedman, Curral and Tsai, 2000; Michael et al., 2001; Passos andCaetano, 2005). Relationship conflict also relates to conflict about personal taste, political preferences, values, and interpersonal style (DeDreu and Weingart, 2003). Relationship conflict negatively effects on the team performance and it breaks personal and professional relations.(Arokiasamy 2013)

A diverse workforce is a reflection of a changing world and marketplace. In the laboratory research diverse work teams bring high value to organizations and respecting individual differences will benefit the workplace by creating competitive edge and increasing work productivity. Diversity management benefits associates by creating a fair and safe environment where everyone has access to the same opportunities and challenges

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T HEORETICAL F RAMEWORK:

The research is conducted on taking the indirect variables of Gender and Ethnicity and direct variables of Employee Performance.

M ETHODOLOGY:

Focus on Research:

The project was assigned for the purpose to have complete command and practical implementation of ‘Primary Research Method’. So we have selected the topic of ‘WORK FORCE DIVERSITY IN PUBLIC AND PRIVATE SECTOR’ for this project.

Our questionnaire is based upon the Impact of WORKFORCE DIVERSITY IN PUBLIC AND PRIVATE SECTOR. In start, we have considered some kind of general information related to age, gender, sector and occupation etc. This kind of information tells about that particular person’s personality and his/her behavior in the society. We have given the Likert scale for the questions so that our audience can easily understand the questionnaire n can easily solve it too without having any kind of complications.

Many research papers on this particular topic are already available on search engines, but the main purpose of this research was to have future outlook of WORK FORCE DIVERSITY IN PUBLIC AND PRIVATE SECTOR in Pakistan. On first we designed questionnaire based on 17 questions. After finalization the research was carried out from people of different occupations, sectors. Then the result was posted in SPSS software to

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GENDER

ETHNICITY

EMPLOYEES PERFORMANCE

get the statistical graphical representation. Report was compiled with the help of different resources. Introduction and articles of this topic were linked with Note-Ex7 software.

We were trying to find out perceptions of people about diversity in either public or private sectors on doing job or business. We gave them a questionnaire for their opinion what’s in their mind.

We made our questionnaire in very simple and easily understandable wording so that the respondents may response very efficiently and

Easily and would not need any kind of help in solving the questionnaire.

A PPENDIXES:

There are 4 portions of the questionnaire which are as follows that we have made:

INTRODUCTION ETHNICITY GENDER PERFORMANCE

INTRODUCTION:

In introduction of the questionnaire we tried to ask people that how much they are having knowledge about the Diversity in the workforce. How much they are influence on its outcomes.

ETHNICITY:

The second portion of the questionnaire is based upon the questions related to the diversity in terms of ethnic group. Wither it influence employee performance.

GENDER:

The third portion of the questionnaire is based upon the questions related to the Gender diversity in the work force. We think that this portion is the most important portion of our questionnaire because it tells about the discrimination, weaknesses of the workforce ethics.

PERFORMANCE:

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Now, the fourth, the last portion of our questionnaire is based upon the conclusion which is a basic part of a research and it has a lot of importance in research work. It gives the end result and includes the whole statistics which we had drawn in the whole research. It includes such type of questions which are related to the main goal of our research.

H YPOTHESIS:

H°= the discrimination does not effect the employee performance.

H1= the discrimination is effecting the employee's performance.

E MPERICAL R EULTS:

T ABLE N O: 1

Variables Entered/Removedb

Model Variables Entered Variables Removed Method

1 Ethinicitmeana . Enter

a. All requested variables entered.

b. Dependent Variable: performean

T ABLE N O: 2

MODEL SUMMARY

Model R R SquareAdjusted R Square Std. Error of the Estimate

1 .295a .087 .081 .50864

a. Predictors: (Constant), Ethinicitmean

E XPLANATION:

The value of R is 0.295.

The value of R^2 is 0.87.

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The value of standard deviation is 0.5 therefore, we accept the hypothesis.

T ABLE N O: 3

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1Regression

3.638 1 3.638 14.061 .000a

Residual 38.290 148 .259

Total 41.928 149

a. Predictors: (Constant), Ethinicitmean

b. Dependent Variable: performean

E XPLANATION:

The significant value of Anova is less than 0.5.

Therefore, we accept the hypothesis. H°

T ABLE N O: 4

Coefficientsa

Model

Unstandardized CoefficientsStandardized Coefficients

t Sig.B Std. Error Beta

1 (Constant) 2.382 .349 6.826 .000

Ethinicitmean .334 .089 .295 3.750 .000

a. Dependent Variable: performean

E XPLANATION:

The risk of error is very low that is 0.29. (Beta)

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In research the significant value is less than 0.5 therefore we accept all hypothesis of H°

C ONCLUSION:

As the result of the research we are on a conclusion to say that workforce diversity is affecting the employee performance and in the long run it could raise conflict in the work environment.

R ECOMMENDATIONS :

The head department should manage the diversity and the workforce in a way that it generates a favorable outcome of new idea and as a whole a positive effect on the organizational performance.

R EFERENCES:

Dogra, N. (2010). "Ethnicity and culture and their relationship to health care." InnovAiT: The RCGP Journal for Associates in Training 3(6): 366-372.

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King, E. B., et al. (2011). "Why organizational and community diversity matter: Representativeness and the emergence of incivility and organizational performance." Academy of Management Journal 54(6): 1103-1118.

Marinova, J., et al. (2010). "Gender diversity and firm performance: Evidence from Dutch and Danish boardrooms." Tjalling C. Koopmans Institute Discussion Paper Series 10(03): 1-28.

McLeod, P. L., et al. (1996). "Ethnic diversity and creativity in small groups." Small group research 27(2): 248-264.

McMahon, A. M. (2011). "Does workplace diversity matter? A survey of empirical studies on diversity and firm performance, 2000-09." Journal of Diversity Management (JDM) 5(2).

Timmers, T. M., et al. (2010). "Gender diversity policies in universities: a multi-perspective framework of policy measures." Higher Education 59(6): 719-735

Arokiasamy, A. R. A. (2013). "Literature Review on Workforce Diversity, Employee Performance and Organizational Goals: A Concept Paper." Researchers World 4(4): 58.

Garnero, A., et al. (2014). "The heterogeneous effects of workforce diversity on productivity, wages, and profits." Industrial Relations: A Journal of Economy and Society 53(3): 430-477.

Idrees, R. N., et al. (2013). "Systematic Review of Literature on Workforce Diversity in Pakistan." Middle-East Journal of Scientific Research 17(6): 780-790.

Omankhanlen, A. E. and J. O. Ogaga-Oghene (2011). "The Impact of Workforce Diversity on Organizational Effectiveness: A Study of a Nigerian Bank."

Ongori, H. and J. Agolla (2007). "Critical review of literature on workforce diversity."

Wentling, R. M. and N. Palma-Rivas (1997). Diversity in the workforce: A literature review, National Center for Research in Vocational Education, University of California at Berkeley.

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APPENDIX 1

COMPARISON OF WORK FORCE DIVERSITY IN PUBLIC AND PRIVATE SECTOR

Dear Respondent,

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Greeting! Thank you for taking some time out for filling this questionnaire. It will take approximately 5 minutes of your time but would be a great help in achieving the goal of our International Research thesis, which is to check comparison of work force diversity in public and private sector. I would like to assure you that all information provided will be kept completely confidential and will only be used for the purposes of research.

Gender: Male Occupation: Businessman

Female Job

Age: 15-20

21-30

31-40

41 and above Salary: 10,000-20,000

Qualification: Intermediate 21,000-30,000

Graduate 31,000-40,000

Post-Graduate 40,000 and above

M Phil

PHD

Sector: Private Public

Q: To what extent do you agree or disagree with the following statements about Marketing/Business Strategy based activities in your organization. “S.D” means Strongly Disagreed“D” means Disagree“N” means Neutral“A” means Agree“S.A” means Strongly Agreed

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ETHNICITY S.D D N A S.A

1 Ethnicity related workforce perform well in organization.

2 Ethnicity affects the overall performance of employees.3 Ethnicity allows more flexible working behavior.4 Ethnicity prejudice prevails in the workplace.5 Diver’s ethnicity creates sense of competition among

employees.6 Ethnicity propagates and gave rise to discrimination in

a workplace.

GENDER S.D D N A S.A

1 The gender composition in an organization’s workforce will affect individual, group, or organizational level performance.

2 Gender diversity is good for businesses.3 The interaction effect of gender diversity affects the

performance of employee.4 A gender-diverse workforce can produce high quality

decisions.5 Gender protagonist propagator creates sense of

employee benefit plans.6 Diversity in gender keeps harmony and respect among

the employees.

PERFORMANCE S.D D N A S.A

1 If diversity manages properly it will results in better performance.

2 Diversity is required for any organization to generate new ideas.

3 Diversity impact negatively on employee performance.

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4 Diversity impact positively on employee performance.5 Diversity can be a source of competitive advantage.

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