Perceived diversity and organizational performance

Abstract

Purpose

The purpose of this paper is to investigate the relationship between employee perceptions of diversity within the senior management, management and non‐management levels of their organizations and their perceptions of organizational performance.

Design/methodology/approach

Surveys were administered to 391 managers or professionals in 130 organizations located in the southeastern United States to determine their perceptions of diversity and performance within their organizations.

Findings

Regression analysis found strong support for the hypothesis that employee perceptions of diversity at the senior management level of an organization is positively related to perceptions of organizational performance. Likewise, there was support for the hypothesis that employee perceptions of diversity at the non‐manager level were positively related to perceptions of organizational performance.

Research limitations/implications

The current study was based strictly on perceptual measures. Future research could also consider the use of more objective measures of diversity to gauge any potential differences between perception and reality. Considering that the sample was drawn strictly from the southeastern US, the conclusions may not be applicable to other cultures in other parts of the world.

Practical implications

Organizations need to be sure that they focus on initiatives that have a positive influence on employee perceptions of diversity within the ranks of senior management and non‐management.

Originality/value

This research sheds new light on the importance of employee perceptions of diversity within the various levels of employees in their organizations and organizational performance.

Citation

Allen, R.S., Dawson, G., Wheatley, K. and White, C.S. (2008), "Perceived diversity and organizational performance", Employee Relations, Vol. 30 No. 1, pp. 20-33. https://doi.org/10.1108/01425450810835392