International Journal of Business Systems and Economics

ISSN: 2360-9923, Volume 14, Issue 1, (January, 2023) pages 48 - 78

DOI: 2726452731415
www.arcnjournals.org International Journal of Business Systems & Economics

Effect of Workforce Diversity on Organizational

Performance, Using Federal Tertiary Health Institutions in
the South-East, Nigeria
1
OKEKE, Chioma Francisca, & 2Prof. MBAH, Stella Ifeyinwa
1&2
Lecturer Department of Business Administration
Chukwuemeka Odumegwu Ojukwu University,igbariam, Anambra State Nigeria

Abstract: This study examined the effect of diversity management on organizational performance by using the
Federal tertiary health institutions in the South-East, Nigeria as the study area. The dimensions of diversity
identified for the study functional expertise, experience and work experience diversity. The design adopted for the
study was descriptive survey design. From a population of 1,971 from the selected institutions in the study, a sample
of 379 was determined through the application of Borg and Gall Statistical formula for determining sample size
from a finite population. Major statistical tools of analysis in the study were Karl Pearson Correlation Coefficient
and multiple regression analysis. All tests were conducted at 0.05 level of significance. Major findings from the
study held that, functional expertise, experience and diversity had significant positive effect on organizational
performance. However, gender, functional expertise and organizational experience predicted organizational
performance more than other diversity dimensions. The study concluded that effective management of employees’
diversity leads to enhanced organizational performance. It was recommended among others that organizations
should deliberately make diversity policy to facilitate its effective management for better outcomes.

Keywords: diversity management on organizational performance, functional expertise, experience and work
experience diversity

1.1 Background of the Study

Workforce diversity has important implications for the organizations that want to achieve their
set objectives. It means then that to have a diverse workforce is one thing while its effective
management is a different thing all together. But experience has shown that many organizations,
especially those in the public sector, do not have workplace diversity policy as employment
depends heavily on favouritism and nepotic tendencies. Even the Federal Character policy meant
to guide employment and appointments in Federal Ministries, Departments and Agencies
(MDAs) is hardly adhered to while considering people to be employed or appointed into
positions of authority (Oyedeji, 2016). According to Ogbo, Kiford and Wilfred (2014), it is an
act that has deprived such organizations of the right mix of workforce that would have facilitate
equity, fairness and inclusiveness as well as the achievement of mission and vision statements of
such organizations.

Workforce diversity management is considered one of the main challenges for human resource
management in modern organizations where technological advances have become dominant
factors of effectiveness and efficiency (Martin, Miguel, Pedro and Sanchez, 2013). Workforce
diversity is a complex phenomenon to manage in an organization. The management of workforce

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diversity as a tool for achieving increased organizational effectiveness and efficiency, cannot be
overemphasized, especially with the current changes that are sweeping across the globe. Owing
to this, it has become necessary to investigate the level of awareness of organization’s
concerning diverse workforce environment and how the organization can benefit from it.

Diversity in the workplace has been perceived by many as a double-edged sword in that it can
increase opportunity for creativity as well as the likelihood that group members may be
dissatisfied and fail to identify with the group. In line with the above opinion, some studies have
found that various forms of diversity area associate with greater innovation, improved strategic
decision-making and organizational performance. For instance, Ujunwa, Okoyeazu and
Nwakoby (2012) found a positive link between foreign board members and performance of
Nigerian quoted firms. Similarly, Goll, Johnson and Rasheed (2016) found from their study of
demographic characteristics, business strategy and firms performance that significant positive
relationship exists between work-related diversity dimensions and organizational performance.
In another study of strategic consensus; management team and innovative performance by
Camelo, Fernandez-Alle and Hernandez (2010), it was found that positive relation exists
between educational diversity of management team and innovation performance of the
organization. On the other hand, other research results have on the contrary shown that some
organizational or workforce diversity increase conflict, reduce social cohesion and increase
employee turnover thereby reducing performance of the organization. For instance, Jackson,
Joshi and Erharat (2013) did a study organizational diversity and performance and found that
heterogeneous organizational workforce makes staff cohesion and cooperation difficult, hence
reduction in the rate of productivity. In a related development, Webber and Donahue (2001)
found that ethnically diverse teams have more challenges to overcome because bonding is more
often than not a problem for the team mates. Yet in another study done by Eulerich, Velte and
Uum (2014) on impact of diversity on German companies, it was found that diversity of
workforce such as gender, age, nationality and functionality have negative effect on performance
because large age differences in particular reduces decision making processes.
Thus, the conflicting results about the effect of workforce diversity on organizational
performance gave impetus to the current study requiring that it should be carried out under strict
adherence to ethnics to mediate between the conflicting results in addition to identifying the
diversity factors/elements that directly and substantially enhance organizational performance.

1.3 Objectives of the Study

The main objective of the study is to examine the effect of workforce diversity on organizational
performance, using federal tertiary health institutions in the South-East, Nigeria as the study
area. Specifically, the study intends to:

(i) Evaluate the effect of functional expertise diversity management on the performance of
federal tertiary health institutions in the South-East, Nigeria.

(ii) Investigate the effect of work experience diversity management on the performance of
federal tertiary health institutions in the South-East of Nigeria.

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1.5 Hypotheses
The following null hypotheses were formulated to guide the objectives of the study as well as
strengthen the analysis:

Ho4 Functional expertise diversity management does not have significant positive effect on
the performance of federal tertiary health institutions in the South-East, Nigeria.

Ho5 Work experience diversity management do not have significant positive effect on the
performance of federal tertiary institutions in the South-East, Nigeria.

REVIEW OF RELATED LITERATURE

2.1 Conceptual Review
2.1.2 Workforce Diversity
Employee diversity refers to a group of characteristics that reflect the degree to which each
individual employee can be identified, the objective or subjective differences among them. Such
characteristics are found in the domain of bio-demographic and work-related diversity and the
elements include but not limited to: gender, age, ethnicity/race, culture, religion, functional
expertise, education, organizational tenure, work experience, etc (Vanknippenberg and
Schippers, 2007 in Shammugam and Marimuthu, 2018). To Muthoni (2017), workforce diversity
in organization is concerned with the different characteristics, including abilities each employee
brings into the organization and each organization is striving to ensure that such differences in
the employees are properly coordinated and managed for better organizational outcomes.

Munjuri (2011) cited in Prasad (2015) defines workforce diversity as the ways that people differ
in an organization, which can affect a task or relationship within the organization, such as
employees’ age, gender, race, education, religion, culture, etc. He observes that it is the
exploration of the differences in a safe, positive and nurturing work environment that is termed
diversity management. To Greenberg (2004), workforce diversity refers to the variety of
differences between people in an organization, including race, gender, ethnic group, age,
personality, cognitive style, tenure, organizational function, education, background and more. In
the same vein, the US National Partnership for Reinventing Government (NPR) Diversity
Taskforce in conjunction with the US Department of Commerce in their sponsored benchmark
study of diversity (2007) defines diversity as including all the characteristics and experiences
that define each of us as individuals.

2.1.5 Organizational Performance

Bate and Holton (1996) define performance as a multi-dimensional construct, the measurement
of which varies depending on a variety of factors. The multiangularity of the term has given
impetus to the divergent connotations it has. To Armstrong (2004), performance simply means
the record of outcomes achieved, while Kane (1996) sees it as something that a person leaves
behind and that exist apart from the purpose. In the opinions of Byars and Rue (2000), it refers to
the degree of accomplishment of the task that make up an employee’s job. It reflects, they noted,
how well an employee is fulfilling the requirements of his/her task. The performance of workers
has become important due to the increasing concern of human resources and personnel experts
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about the level of output obtained from workers due to poor remuneration. Measuring
performance is of great importance to an incentive plan because it communicates the importance
of established organizational goals. What actually gets measured and rewarded in performance,
gets attention (Bohlander et al, 2001). Therefore, measuring employees’ performance must
include quality that can be measured by percentage of work output that must be redone or is
rejected. Besides that, customer satisfaction that can be measured by the number of royal
customers and customers’ feedback and also timeliness, measured in terms of how fast work is
performed by the employee when given a certain task and absenteeism/tardiness observed when
employees absent themselves from work and achievement of objectives measured when an
employee has surpassed his or her set targets, then considered to have performed well to achieve
objectives (Hakala, 2008).

According to Richard, Deoinney, Yip and Johnson (2009), organizational performance

encompasses three specific areas of firm outcomes namely; financial performance, product
market performance and shareholders returns. However, they note that organizational
effectiveness is broader because it involves both financial and non-financial performance.

2.2 Theoretical Framework

This study is being anchored on the Resource Based – theory of the firm developed by Barney in
1991, which is regarded as one of the theories of strategic management that is widely referenced
particularly because of its practical relevance to contemporary management practices both in the
private as well as the public sector organizations. The theory, for all intent and purposes,
contends that the possession of strategic resources provide an organization with a golden
opportunity to because effective and develop competitive advantages over its rivals.

With respect to diversity management, the main focus of resource based theory is how the
implementation of diversity will affect organizational resources to produce desirable outcomes.
Accordingly, there are four main categories of resources that organizations possess and they are:
physical capital, financial capital, human capital and corporate capital resources. The resources
can either assist or inhibit the operations of the organization. Organizations attempt to use the
resources in ways that they will of course assist and improve performance in the organization.
From a business perspective, organizations that are more diverse gain advantage compared to
organizations that are more homogenous.

Diversity dimensions such as race/ethnicity, gender, age, experience, culture or religion within
organizations, increase both financial and non-financial performance of the organization. This
perspective views organization as consisting of a variety of resources, generally including the
four mentioned above (Barney and Clark, 2007). Having said that resources can either enhance
or inhibit organizations from efficiently and effectively conceiving and implementing
organization’s strategies, the attributes of resources held by organizations determine performance
heterogeneity. Resources that allow an organization to conceive and implement strategies that
improves its efficiency and effectiveness are viewed as valuable and can be a source of
competitive parity (Barney, 1989).

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Resource-based theory suggests that differences in managers’ views regarding the value of
diversity for organizational effectiveness affects the adoption of diversity management practices.
Also, when diversity is perceived to highly relevant to organization’s strategy, manager may
adopt diversity practices more comprehensively to acquire and exploit this valuable resource.
Therefore, exploring the link between strategy and diversity management can facilitate
understanding of the heterogeneity of diversity management practices across firms.

Resource-based theory states further that main effect of diversity management practices on
performance is that there have been fairly consistently positive outcomes notwithstanding the
fact that some null findings have also been reported. Indeed, scholars such as Pitts (2009) and
Barney and Clark (2007) have argued that human resource being the most critical of the four
main resources recognized in resource-based theory must be utilized fully in order to gain
performance advantage. It is an opinion which lends credence to the postulation that diversity
management practices help organizations to derive value from a diverse employee base.

The negative consequences of diversity, such as prejudice, discrimination and inter group
conflict, imply a cost to an organization while the bright side of diversity, variety of information,
flexibility, enrich decision making due to different background, creativity and innovation,
suggests) the potential for diversity to create value. For resource-based theory therefore, the
primary concern/goal of diversity management practices is to reduce costs and/or to exploit the
benefits of diversity.

Relevance of Theory to the Study

According to Barney (1991), a response to superior performance is causal support within the
resource-based view, later raised to status of resource-based theory. In his opinion, the theory is a
superior explanatory basic model that explains that an organization performance can be
explained by the way its remarkable and most essential resources among which is human
resource, are managed. This understanding guides the managers’ strategic thin king and it
explains why organizations can, over time, expand their service scope or markets, strengthen the
brands, achieve higher service delivery to the people or earn enhanced profit margins and
maintain the lead among other organizations who produce the same products or render the same
services.

The relevance of the theory to the study can been from the point of view that diversity
management focuses on reduction in stereotype, prejudice and discrimination among the
members of the workforce, rather, it emphasizes the need to exploit their rich different
background to create value for the organization. As could be seen this is not very much different
from what resource-based theory stands for. It has been argued that human resource is the most
critical of all resources used in an organization because it coordinates and controls every other
thing that makes the organization to function in the desired direction. Accordingly, effective
diversity management as has been postulated in the framework of resource-based theory would
ordinarily lead to efficiency in the utilization of human resource to reduce costs by exploiting the
benefits of diversity to deliver services efficiently and effectively to the deserving members of
the public.

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2.4 Empirical Review

Muhu and Zewdie (2021) did a study on the effect of diversity management on organizational
performance: the case of Ethio-Telecom South West Region. The study adopted descriptive
survey research design. Through path analysis, the result showed that organizational diversity
management constructs or dimensions (ethnicity, gender and religion) are positively related to
organizational performance. The study concludes that diversity management positively
influenced employees’ productivity, satisfaction, creativity and innovation as well as better
decision-making that fosters organizational enhanced performance. In another study, Kundu and
Mor (2017) investigated workforce diversity and organizational performance of an IT industry in
India. The study adopted descriptive survey research design. The major statistical tools of
analysis were factor analysis, correlation, analysis of variance (ANOVA), mean and regression.
The result showed that employees’ perception of promotion of gender diversity was found to be
positively related to perceived organizational performance. The study concluded that employees,
irrespective of their diversity backgrounds positively acknowledged diversity and diversity
management in the organization.
Imbambi, Aketch and Awiti (2020) investigated the relationship between ethnic diversity and
employee performance in public universities in Western Kenya. The study adopted descriptive
survey method. The target population included the chairpersons of departments of four public
universities in Western Kenya. The results show statistically significant positive relationship
between ethnic diversity and employee performance. The study concludes that ethnic diversity
positively influences employees’ performance in public universities in Western Kenya and
majority of the employees in public universities are positive about ethnic diversity practices in
their institutions. Shaudhry and Sharma (2016) studied the role of gender and ethnic diversity on
the performance of employees in selected companies in India. The study adopted survey method
and the result showed that there is positive relationship between gender and employee
performance, as their value of correlation coefficient is between 0.21 and 0.40. The study
concludes that there is significant positive relationship between ethnic diversity and employee
performance in the studied organizations. Amakiri and Perewari (2021) investigate the
implication of managing cultural diversity on organizational innovativeness. Through a content
analysis approach, it was found that team which has variety of diverse characteristics can
collectively spark a height of inventiveness and likely exude better capacity to resolve intricate
glitches and offers superior solution. The study concludes that organization thrives creatively and
innovatively in a culturally diverse workforce tolerant environment.
In a related study, Warmate, Jaja and Zeb-o-bipi (2020) carried an investigation into gender
diversity and organizational performance of 3 Star hotels in South-South, Nigeria. The study
adopted survey method and found from its analysis of data that there is significant relationship
between gender diversity and organizational performance of 3 Star hotel in South-South, Nigeria.
The study concludes that gender diversity significantly predicts organizational performance of 3-
Star hotels in South-South, Nigeria.
In a related study, Ahmad and Rahman (2019) examined the effect of workforce diversity on
employees’ performance in Allama Igbal Open University of Pakistan. The study used survey
design method. The result revealed that age gender and ethnicity diversity have negative
relationship with employees’ performance but experience diversity has positive effect on
employees’ performance in the organization. The study concludes that dimensions of diversity
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have different effects on performance in the organization. Similarly, Foma (2014) examined the
impact of workplace diversity on organizational performance. The study adopted survey method
and the result show that workplace diversity is positively related to organizational performance.
It was concluded that workplace diversity is very important in every organization and it is
essential that management in every business focus and prioritize diverse hiring due to many
benefits that it brings.
Dapper, Ezenwuba and Jacobs (2019) conducted a study on workforce diversity and
organizational effectiveness of selected multinational firms in Rivers State, Nigeria. The study
used descriptive survey design as the approach. The result showed that differences in workforce
skill set enhances the competitiveness of multinational firms. The study concluded that
workforce diversity is more of a facilitator of organizational effectiveness than it is an inhibitor.
In another study, Mousa (2021) did a study on whether gender diversity affect workplace
happiness for academics: the role of diversity management and organizational inclusion. The
study’s design was descriptive survey. The result showed no relationship between gender
diversity and organizational inclusion and the author confirmed that gender diversity, diversity
management and organizational inclusion can effectively predict workplace happiness. Akpakip
(2017) did a study on effect of workforce diversity on employees’ performance in Nigerian
Banking Industry, using First bank Nigeria PLC, Ota branch as the study area. The study made
use of survey research design. Major statistical tools of analysis were Spearman rank order
correlation and multiple regression analysis. The results showed that all aspects of workforce
diversity used in the study have strong influence on employees’ performance. It was equally
found that age, gender and education had stronger influence on employees’ performance. The
study concluded that effective diversity management is the surest way to organizational
competitiveness and consequently growth.
In a related study, Mbah, Onodugo and Agbaeze (2018) examined the impact of ethnic diversity
on team performance in federal health institutions in the South-East, Nigeria. The study made
use of descriptive survey design. The result of the analysis showed that ethnic diversity has
significant positive impact on team performance. The study concluded that workers have
preconceived overt and implicit preferences on who they would like to work with and therefore,
increasing ethnic diversity may result in disunity and lack of cohesion within the workforce. In
another study, Agbeze, Nkwonta and Obiefuna (2019) examined the effect of workforce
diversity on performance of manufacturing firms in South-East, Nigeria. The study made use of
descriptive survey design. The result revealed that gender, language and educational background
had significant positive effect on diversity time, productivity and output respectively of the
employees of selected manufacturing firms in South-East, Nigeria. The study concludes that
workforce diversity is a vital dimension in the progress of manufacturing firms and for an
organization to succeed, it is important for know the benefits of having a diverse workforce.
Nida and Nida (2018) did a study on workforce diversity and organizational performance. The
design for the study was descriptive survey. The result of the analysis shows that diversity
management has significant positive effect on organizational performance. The study concludes
that diversity is very important so that market as well as effectiveness of organizational
performance may be sustained. In another study, Khan, Sohail, Sufyam, Uddin and Basit (2019)
investigated the effect of workforce diversity on employee performance in higher institution
sector of Pakistan. The study adopted descriptive survey design and the result of the analysis
show that there is positive relationship between independent variables (gender, age, educational
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background and ethnic diversity) and dependent variable (Employee performance). The study
concludes that effective diversity management leads to employees’ job satisfaction.

METHODOLOGY
3.1 Research Design
The study made use of descriptive survey design. The choice of the design was informed
by the fact that the data were collected from a sample of the population in order to
describe the condition or relationships that exist between variables (Nworgu, 2006).
3.2 Area of the Study
The study took place in the South-East geopolitical Zone of Nigeria. The south-East is
one of the six geopolitical zones representing both a geographic and political region of
the Nigeria. It comprises five states- Abia, Anambra, Ebonyi, Enugu and Imo.
3.3 Population of the Study
The population of the study consists of all the federal tertiary health institutions in South-
East, Nigeria. The sampling frame consists of senior employees and consultants of the
federal tertiary health institutions located in South-East, Nigeria. The Institutions include:
Federal Medical Center, Umuahia, Abia State, University of Nigeria Teaching Hospital
Ituku-Ozalla, Enugu State, Nnamdi Azikiwe Teaching Hospital, Nnewi, Anambra State,
Federal Medical Center Owerri, Imo State and Alex Ekwueme Federal University
Teaching Hospital Abakaliki.
The total elements that made up the population is One thousand, nine hundred and
seventy-one (1,971) staff who are purposively identified because they are the categories
of element that provided the needed information required for the objectives of this study.
The following are the breakdown of the figures from each federal tertiary health
institutions:
1. University of Nigeria Teaching Hospital (UNTH) Ituku-Ozala – 390
2. Nnamdi Azikiwe University Teaching Hospital Nnewi (NAUTH) – 377
3. Alex Ekwumeke Federal University Teaching Hospital Abakaliki – 346
4. Federal Medical Center Owerri (FMCO) – 312
5. Federal Medical Center Umuahia (FMCU) – 288
6. National Orthopaedic Hospital, Enugu – 258
3.4 Sample Size Determination and Sampling Technique
The sample for the study was determined through the application of a formula developed
by Borg and Gall in 1973. The estimation procedure is as follows:
𝑛 = (𝑍 ) (𝑒)[𝑁]
Where:
n = Sample size to be estimated
N = Entire population of interest

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Z() = Confidence level (1.960) at 0.05

e = Error margin (0.05)

 = Significance level
Substituting in the formula, we have:
𝑛 = (1.960) (0.05)(1971)
= 3.8416 (98.55)
= 378.59
𝑛 = 379 (Nearest whole number)
Thus, the sample size for the study is 379 senior employees of the institutions in the
study. But in order to determine the number of employees to be selected and interviewed
from each institution, we applied proportionate sampling technique as follows:
𝑛ℎ
𝑛 = ×𝑛
𝑁
Where:
ni = Sample size for the ith institution
nhi = Population of the ith institution
N = Overall population of the study
n = Study’s sample size.
Substituting in the formula, we have:
1. University of Nigeria, Nsukka Teaching Hospital:
390
𝑛 = × 379 = 75
1971
2. Nnamdi Azikiwe Teaching Hospital, Nnewi:
377
𝑛 = × 379 = 72
1971
3. Alex Ekwueme Federal University Teaching Hospital, Abakakili:

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346
𝑛 = × 379 = 72
1971
4. Federal Medical Center Owerri:
312
𝑛 = × 379 = 60
1971
5. Federal Medical Center Umuahia:
288
𝑛 = × 379 = 55
1971
6. National Orthopaedic Hospital Enugu:
258
𝑛 = × 379 = 50
1971
Table 3.1: Population and Sample Distribution
S/N Institution Population Sample Percentage
Allocation of Total
1. University of Nigeria Teaching 390 75 19.8
Hospital

2. Nnamdi Azikiwe Teaching 377 72 19.1

Hospital

3. Alex Ekwueme Federal University 346 67 17.7

Teaching Hospital

4. Federal Medical Center Owerri 312 60 15.8

5. Federal Medical Center Umuahia 288 55 14.5
6. National Orthopaedic Hospital 258 50 13.1
Enugu
Total 1971 379 100.0
Source: Field Survey, 2023
Table 3.1 shows that samples were allocated to institutions proportionately, depending on
the population of staff in each institution. Systematic sampling method was used because
of its unique attributes of random start and sampling interval which allows it to spread the
sample evenly across the population of interest.

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3.5 Instrument for Data Collection

An item structured instrument developed by the researcher to reflect a five (5) point
Likert scale format of strongly agree, agree, disagree, strongly disagree and undecided
was used to elicit information from the respondent on all issues bordering on diversity
and its effect of organizational performance.

3.9 Method of Data Collection

The research made use of direct questionnaire administration approach because of its
obvious advantages over other methods. One, it affords the researcher the opportunity of
assessing whether the respondents actually understood the questionnaire items. Two it
affords the researcher the opportunity of making clarification or explanations on the
instrument if the need arises. Third, it reduces the volume of non-response rate which is
often associated with surveys of this nature.

3.10 Method of Data Analysis

The data generated from the study were analyzed quantitatively through the following
statistical tools: summary statistics of percentages in frequency tables, descriptive
statistics; inferential statistics of correlation and multiple regression analysis. The data
were in ordinal and nominal form but were transformed (converted) to become useable in
quantitative analysis. All tests were conducted at 0.05 level of significance, being the
probability at which we would be willing to accept type I error.

3.11 Model Specification

The study explored the relationship between dimensions of diversity and organizational
performance. Accordingly, the functional relationship between the dependent and
independent variables are stated as follows:
Organizational Performance = f(GD, AD, ED, FED, OED) - - (1)
Specifying equation (1) in an econometric form, we have:
OP = o + 1GD + 2AD +3ED + 4 FED + 5OED +μt - - (2)
Where:
OP = Organizational Performance
o = The intercept
μt = The stochastic error term
GD = Gender diversity
AD = Age diversity
ED = Ethnicity diversity
FED = Functional expertise diversity
OED = Organizational experience diversity
i’s = The coefficients of the independent variables
The a priori or expected signs of the coefficients are:
1 > 0, 2 > 0, 3 > 0, 4 > 0 and 5 > 0

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or
i’s > 0
Thus, showing that all the independent variables are expected to have positive
relationship with the dependent variables.

DATA PRESENTATION AND ANALYSIS

In this chapter, the analysis were carried out in three main sections, namely; the analysis
of respondents’ personal data, answer to the research questions and test of hypotheses.
Whereas frequency tables and summary statistics of percentages were used to analyze the
respondents’ demographic characteristics and answer the research questions which were
structured in Likert scale format, respectively, Pearson correlation and multiple
regression analysis were deployed in verifying the claims of various null hypotheses
formulated to guide and strengthen the analysis. All tests were conducted at 0.05 level of
significance.

4.1 Demographic Characteristics of the Respondents

In this section of the analysis, we analyzed the demographic features of the respondents
to provide detailed information about the background of the respondents in the study.
This, we presume, will help in determining the suitability or otherwise of the categories
of staff chosen for the study. It provides the opportunity to assess whether the
respondents have the required capacity and knowledge to effectively discuss all issues
relating to workforce diversity in the public sector organizations and how diversity
management can influence organizational performance.
Table 4.1: Gender of the Respondents
S/N Gender Frequency Percent Valid Percent Cumulative
1. Male 239 63.1 63.1 63.1
2. Female 140 36.9 36.9 100.0
Total 379 100.0 100.0
Source: Field Survey, 2023
The analysis of respondents’ gender presented in Table 4.1 shows that there are 239 male
respondents in the study and it represents 63.1 percent of the sample. The implication is
that there are overwhelmingly more males than females in the study.
Table 4.2: Age Bracket of the Respondents
S/N Age Bracket Frequency Percent Valid Percent Cumulative
1. 18 – 27 12 3.1 3.1 3.1
2. 28 – 37 71 18.7 18.7 21.8
3. 38 – 47 122 32.3 32.3 54.1
4. 48 – 57 97 25.5 25.5 79.6
5. 58 and above 77 20.4 20.4 100.0
Total 379 100.0 100.0
Source: Field Survey, 2023

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The analysis of respondents age showed that age bracket 38 to 47 years has the highest
number of respondents, 122 which represents 32.3 percent of the entire sample. It is
followed by age bracket 48 to 57 with 97 persons 58 years and above with 77 persons
which represents 25.5 percent and 20.4 percent of the sample respectively. The analysis
showed that the sample is made up of people who are relatively young.
Table 4.3: Educational Qualification of the Respondents
S/N Educational Frequency Percent Valid Percent Cumulative
Qualification
1. OND/Equivalent 16 4.1 4.1 4.1
2. First 157 41.3 41.3 45.4
Degree/Equivalent
3. Masters Degree 113 29.7 29.7 75.1
4. Doctorate Degree 58 15.5 15.5 90.6
5. Professional Cert. 35 9.4 9.4 100.0
Total 379 100.0 100.0 -
Source: Field Survey, 2023
As could be seen from Table 4.3, 157 respondents representing 41.3 percent of the
sample have first degree or its equivalent, 171 of them representing 45.2 percent of the
sample have masters degree and above while 16 and 35 persons representing 4.1 percent
and 9.4 percent of the sample have OND or equivalent and professional certificate
respectively. The implication of the results is that the sample is made up of people who
are fairly literate and as such, they can discuss all issues relating to the subject matter of
the study.

Table 4.4: Respondents Organizational Tenure (in years)

S/N Years in Service Frequency Percent Valid Percent Cumulative
1. Below 5 years 22 5.7 5.7 5.7
2. 5 – 10 years 68 17.9 17.9 23.6
3. 11 – 15 years 119 31.3 31.3 54.9
4. 16 years and above 170 45.1 45.1 100.0
Total 379 100.0 100.0 -
Source: Field Survey, 2023
The analysis of respondents’ years in service in their various organizations showed that
119 of them representing 31.3 percent of the sample and 170 workers representing 45.1
percent of the sample as well have worked in their various organizations for 11 to 15
years and 16 years and above respectively. In otherwords, 289 respondents representing
76.4 percent of the entire sample have worked in their organizations for upward of 11
years and above. It is apparently an indication that the respondents are in a position to
effectively discuss all matters relating to workforce diversity and organizational
performance in federal health institutions across the states of the South-East, Nigeria.

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Table 4.12: Summary of Analysis of Variance (ANOVA) for the Model

ANOVAb
Source of df Sum of Mean Square F-ratio Sig.
Variation Squares
Regression 4 257.169 64.292 20.320 .000a
Residual 145 458.731 3.164
Total 149 715.900
a. Predictor: (constant), functional expertise diversity and experience diversity.
b. Dependent variable: Organizational Performance

As could seen from Table 4.12, F-Statistic with a value of 20.320 is significant because P
≤ 0.05 is greater than P0.000 which is the significance level chosen for the test. The
implication is that overall, regression model is statistically significant, valid and fit for
predictions. It shows further that significant and positive relationship exists between the
dependent and independent variables.

Table 4.13: Summary of Regression Results

Model R R.Square Adjusted Standard Error Durbin
R-Square of the Estimate Watson
I 0.792 0.711 0.689 0.50231 2.017
a. Predictor: (constant), , functional expertise
diversity and experience diversity
The regression analysis presented in Table 4.13, shows that regression coefficient
represented by ‘R’ has a value of 0.792 and it means that 79.2 percent relationship exists
between the dependent and independent variables. Similarly, the coefficient of
determination represented by ‘R2’ with a value of 0.711 shows that 71.1 percent variation
in organizational performance can be explained by the various dimensions of diversity
management in the study. The table shows also that with Durbin Watson Statistic of
2.017, the model did not contain any serial auto-correlation thereby confirming the
position of multicollinearity statistic described earlier in the analysis.

Table 4.14: Coefficients of the Predictor Variables and t-values of the Estimate
Model Unstandardized Standardized t Sign
Coefficients Coefficients
β Std. Error Beta
1 (Constant) -.187 .207 - -.763 .445
Functional Expertise diversity .543 .067 .713 2.721 .013

Experience diversity .485 .074 .709 3.410 .005

a. Dependent Variable: Organizational Performance
Table 4.14 presents the coefficients of the independent variables, the t-values and the
various corresponding probability levels. As could be seen from the table, variables

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with very high coefficients are clear expression of their relationship with the
dependent variable. That is, variables such as functional expertise and and experience
diversity have more positive influence on organizational performance. The signs of
the coefficients confirmed the a priori position of the model.

4.3 Test of Hypotheses

In this section, we tested all the hypotheses formulated to guide and strengthen the
objectives of the study. The validation exercise was accomplished through the results of
the multiple regression analysis. The hypotheses were meant to confirm the results of the
research questions so. That it would be made clear whether such results occurred by
chance or statistically significant at 0.05 level of significance.

Re-Statement of the Study Hypotheses

1. Ho: Functional expertise diversity management does not have significant positive
effect on the performance of federal tertiary health institutions in the South-East,
Nigeria.

H1: Functional expertise diversity management has significant positive effect on the
performance of federal tertiary health institutions in the South-East, Nigeria.

2. Ho: Work experience diversity management does not have significant positive effect
on the performance of federal tertiary health institutions in the South-East,
Nigeria.

H1: Work experience diversity management has significant positive effect on the
performance of federal tertiary health institutions in the South-East, Nigeria.

The estimated regression equation (Model) can be written as:

OP = 187 + 0.713FEDM + 0.7090EDM

Interpretation of Test/Regression Results

In this section of the analysis, we interpreted the coefficient of beta (β), t-value and other
parameters of validation in the model so as to facilitate decision taking for the
hypotheses. As could be seen from Table 4.14, the values or coefficients of the
independent variables represented by beta (β), show the relative influence of each
dimension of diversity in the study on organizational performance as specified in the
model.

The coefficient of functional expertise diversity management represented by β 4 in the

model is 0.713 and it means that when the variable is increased by any one more unit, the

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dependent variable, organizational performance will increase by 71.3 percent if other

variables in the model are held constant. Similarly, that t-value of 2.721 and its
corresponding probability level of 0.013 is a confirmation that the coefficient is
significant. Consequently, we rejected the null hypothesis and conclude that functional
expertise diversity management has significant positive effect on organizational
performance in the South-East, Nigeria.

Finally, the coefficient of organizational tenure and experience diversity management

represented by β5 has a value of 0.709 and it means that when the variable is increased by
one additional unit, the organizational performance will also increase by 70.9 percent if
other variables in the model are held constant. The t-value of 3.410 and its corresponding
probability level of 0.005 are indications that the coefficient is significant because P 0.005
is less than P ≤ 0.05. Consequently, the null hypothesis was rejected while the alternative
hypothesis which suggests that organizational tenure and experience diversity
management have significant positive effect on organizational performance was accepted.

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings
The analysis of the respondents’ background information suggests that they are suitable
for the study given their educational background and organizational tenure among other
demographic features. Such demographic characteristics indicated that they could
effectively discuss all issues relating to workforce diversity management and
organizational performance. On the other hand, the answers provided to the research
questions showed that effective diversity management leads to organizational enhanced
performance.

In order to ascertain if such answers provided by the respondents occurred by chance or

that they are statistically significant, the answers were subjected to various statistical tests
using Karl Pearson Correlation Coefficient and Multiple regression analysis. Preliminary
results from the tests which were conducted at 0.05 level of significance showed that F-
Statistics with a value of 20.320 is significant and it is an indication that the model is
statistical significant, fit and valid for any predictions because P ≤ 0.05 is grater than
P0.000. The regression coefficient represented by ‘R’ in the model with a value of 0.792
means that 79.2 percent relationship exists between the dependent (organizational
performance) and independent variables (dimensions of diversity as identified in the
study). Similarly, the coefficient of determination represented by ‘R2’ in the model with a
value of 0.711 shows that 71.1 percent variation in the dependent variable can be
explained by the independent variables. The rest of the findings are specifically
summarized below:

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1. Employees’ functional expertise diversity management has significant positive

effect on the performance of federal tertiary health institutions in South-East,
Nigeria.
2. Work Experience diversity management has significant positive effect on
performance of federal tertiary health institutions in the South-East, Nigeria.

5.2 Conclusion
The study examined the effect of diversity management on performance of federal
tertiary health institutions in the South-East, Nigeria. From the results/findings made
from the study, far reaching conclusions are made. Gender diversity was one of the
diversity dimensions, examined in the study and it was found that its effective
management significantly predicts organizational performances in the institutions
studied. It is always good to have both sexes in good proportions in any organization.
Such a policy makes for healthy competitition among the workers thereby promoting
organizational enriched outcomes. Gone are the days when women are limited by glass
ceiling, modern days organizations encourages healthy rivalry and it has made for
efficiency in service delivery for the service rendering organizations just as the results of
the present study has indicated.

Another dimension of diversity that was investigated in the study is age. The result
showed that its effective management has significant positive effect on organizational
performance. Age diversity is a critical factor in achieving organization’s set goals and
objectives. A mixture of young and old employees has always been advocated in any
organization because as the younger generation are easily adaptable to modern
technologies, the experience of the older generation equally matters. Therefore, age
diverse workforce has many advantages which are not available to age homogeneous
workforce. Age diverse workforce makes it possible for workers of different age bracket
to cross-fertilize ideas on how to move the organization forward. Just as different age
groups provide different values for the organization and these values complement each
other towards improved organizational performance.

Highly ethnically diverse organizations are in a better position to be creative and

innovative. It has also been revealed that having a diverse ethnic groups in an
organization means that task execution can be carried out more professionally and more
efficiently because of the ethnic bias in it and ethnic diversity benefits team performance
due to a more diverse pool of skills and knowledge that leads to complementarity and
mutual learning. In all, effective ethnic diversity management leads to enhanced
organizational performance.

Functional expertise diversity has positive effect on organizational performance because

it helps to generate ideas at the same time toward the navigation of problems within the

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organization. It is advantageous to any organization because it ends in using best

approach from the experts of diverse backgrounds. However, functional expertise
diversity do not influence organization’s performance automatically rather, it requires
concerned efforts from the human resource management to make its impact on the
organization. It equally permits the blending of complementary knowledge, competences
and skills to make best use of available resources in the organization for improved
outcomes to be achieved.

Concerning experience and organizational tenure diversity, the study revealed that they
support organization’s performance on many fronts. One, because of the diverse nature of
the employees experience, there are unique perceptions and they are brought to the table
during interactions on duty posts. Two, employees diversity in experience and
organizational tenure leads to ne wand improved methods in service delivery. Three,
combining diverse expertise with longtime experience leads to enhanced service delivery
to the people. Therefore, experience matters a lot while considering what could be done
to achieve desired organizational performance. But overall, in managing employees’
diversity, heterogeneity may initially produce less cohesion in decision-making process,
however, the variety of outlooks that emerge from diverse group structure encourages
managers to consider more perspectives and thereby leading to informed decision-making
and superior outcomes for the organization in the long-run.
5.3 Recommendations
The study has revealed that employees’ effective diversity management leads to enhance
performance of the organization. In the light of the above, the following
recommendations were made:
1. Organizations are adviced to employ individuals with functional expertise from
different backgrounds. It helps in generating ideas and at the sametime provides a
broad for solution to problems in the organization when the need arises.
2. Work Experience diversity is very necessary in achieving desired performance
level in an organization. We suggest that it should be encouraged to facilitate
organizational improved performance.

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