Effects of perceived diversity on perceived organizational performance

Abstract

Purpose The purpose of this paper is to investigate the association between constructs of employee perception of diversity (EPD) and perceived organizational performance (POP) through components of organizational justice over different hierarchal levels and also across the private and public healthcare sector organizations. Additionally, this study also examines whether employees from diverse backgrounds vary in their perceptions regarding diversity in healthcare sector of Pakistan. Design/methodology/approach Data were collected from primary sources, that is medical, paramedical and administrative staff (different designations) of both public and private hospitals for analyzing the results. The overall population consisted of 250 respondents and the hypotheses were tested using two-way ANOVA and CAUSALMED procedures. The data were collected during the course of three months in different time slots from 9 a.m. to 9 p.m. Statistical Analysis Software was used to analyze the data. Findings Findings indicate that regardless of their gender or categories, employees recognize diversity positively, but their responses have significant difference over the hierarchal levels. Furthermore, it is found that EPD is positively linked to the POP, and the relationship gets stronger in the presence of perceived organizational justice (POJ). Research limitations/implications The study was confined to the healthcare sector, so further studies can be conducted in other sectors. The present study checked the impact of POJ, but other important reasonable factors that can intervene in the relationship between perceived diversity and POP can be studied, such as organizational commitment. Practical implications First of all, it is dispensable for the organizations to ensure the positive perception of these initiatives from employees to implement the diversity programs. Second, the management must ensure the presence of all groups of employees to get the right responses for the diversity management initiatives. Third, the healthcare industry of Pakistan needs to be assessed in the context of current study and diversity initiatives should be taken in hiring and retention of the employees. Originality/value The presence of employees of healthcare industry across the sector over hierarchal levels will absolutely add value to the existing knowledge on diversity, diversity management, management theory and practice.