Assessing the Effect of Perceived Diversity Practices and Psychological Safety on Contextual Performance for Sustainable Workplace

Abstract

Perceiving discrimination in workplace practices psychologically damages employees and affects their work performance. The current study aims to find differences in perceived diversity practices (i.e., equal representation and developmental opportunities and gender diversity promotion) and the psychological safety of diverse groups in the workplace. Further, the study investigates the relationship of equal representation and developmental opportunities, gender diversity promotion, and psychological safety with employee contextual performance. A sample size of (n = 536) respondents was collected from the private banking sector in India, and was further analyzed using statistical tools, such as factor analysis, correlations, analysis of variance, and regression analysis. The findings indicate differences in gender and tenure diversity regarding “equal representation and development opportunities”, and “gender diversity promotion.” Furthermore, “equal representation and development opportunities,” and “psychological safety” showed a significant negative relationship with the employee contextual performance. Further, no association between perceived “gender diversity promotion” practices and “contextual performance” was found. The novelty of the current research is unlike previous research; the study highlights that excess psychological safety, equality in representation, and development opportunities to have “workforce diversity” make employees aggressively explicit and disengage them from additional work behavior. The findings of the study and application of SPSS software for the analysis of the employee’s perception, behavior, and performance will aid managers and leaders in better decision making for employees; business growth; effective human resource and business management; and for building a healthy, collaborative, and sustainable work environment in the private banks and similar organizations.

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