EFFECT OF DIVERSITY IN WORKPLACE ON EMPLOYEE PERFORMANCE IN THE BANKING INDUSTRY IN KENYA

Abstract

Diversity is increasingly recognized and utilized as an important organizational resource in regards to whether the goal is to be an employer of choice, to provide excellent customer service, or to maintain a competitive edge. The main objective of this study was to determine the effect of work diversity on employee performance in the banking industry in Kenya. The study also sought to determine the effect of education diversity, ethnic diversity, gender diversity and age diversity on employee performance in the banking industry in Kenya. A descriptive research design was used in this research. The study target population was all the middle level managers working at the headquarters of all the 43 commercial banks in Kenya. This study used stratified random sampling to select 30% of the commercial banks. The sample size of this study was therefore 221 middle level managers. Semi structured questionnaires was used in research study to collect primary data. Quantitative data in the structured questionnaires was examined by use of the statistical package for social sciences (SPSS version 21). Descriptive statistics including frequencies, percentages, mean and standard deviation were used to analyze quantitative data. The data was then represented in tables and graphs. Content analysis was used in the analysis of qualitative data. Additionally, correlation and regression analysis were used to establish whether there is a relationship between the dependent and the independent variables. The study established that gender diversity was influencing employee performance in the banking industry most, followed by education diversity and ethnic diversity. However, the association between age diversity and employee performance was insignificant. The study therefore recommends that workplace diversity management practices should be developed bring together the work experience of the old and the technological capabilities of the young to improve employee performance.

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