The Effect of Diversity Management on Organizational Performance: The Case of Ethio-Telecom South West Region


  •   Abdulhakim Mulu

  •   Shemelis Zewdie


The aim of this paper is examining the effect of diversity management on organizational performance by focusing on Ethio-Telecom (Ethiopian Telecommunication) South West region offices. Using Survey research design a quantitative data was randomly collected from a total of 120 employees. Path analysis was conducted to test the three research hypothesis. The result of empirical analysis showed that organizational diversity management constructs or dimensions (ethnicity, gender, and religion) are positively related with organizational performance. Hence, diversity management can positively influence employee productivity, satisfaction, creativity and innovation and better decision making there by fostering organizational performance.

Keywords: Diversity management, Ethnic diversity, Gender diversity, Religious diversity, Organizational performance


Prasad, P., Pringle, J., & Konrad, A. (2005). Examining the contours of workplace diversity: Concepts, contexts and challenges.

Makhdoomi, U., & Nika, F. (2017). Workforce diversity and employee performance-an empirical study of telecom organizations. Amity Global Business Review, 108-115.

Simons, S., & Rowland, K. (2011). Diversity and its impact on organizational performance: The influence of diversity constructions on expectations and outcomes. Journal of Technology Management & Innovation, 6(3), ISSN: 0718-2724.

Mazur, B. (2010). Cultural diversity in organisational theory and practice. Journal of Intercultural Management, 2(2), 5–15.

SaintDic, Y. (2014). Modelling diversity management practices in corporate ethics: The spillover effect. Dissertation for the Degree of Doctor of Business Administration, Kennesaw State University.

Kalonaityte, V. (2010). The case of vanishing borders: Theorizing diversity management as internal border control. Organization Articles, 17(1), 31–52, ISSN 1350–5084.

McMahon, A. (2010). Does workplace diversity matter? A survey of empirical studies on diversity and firm performance. Journal of Diversity Management, 5(2), 37-48.

Ashikali, T., & Groeneveld, S. (2015). Diversity management for all? An empirical analysis of diversity management outcomes across groups. Emerald Personnel Review, 44 (5), 757-780.

Mason, D., & Aramovich, N. (2013). The psychological benefits of creating an affirming climate for workplace diversity. Group & Organization Management, 38(6), 659–689.

Armstrong, C., Flood, P., Guthrie, J., Liu, W., Maccurtain, S., & Mkamwa, T. (2010). The impact of diversity and equality management on firm performance: beyond high performance work systems. Human Resource Management, 49(6), 977–998.

Kossek, E., Lobel, S., & Brown, J. (2005). Human resource strategies to manage workforce diversity: Examining ‘the business case’, 54-74.

Pless, N., & Maak, T. (2004). Building an inclusive diversity culture: Principles, processes and practice. Journal of Business Ethics, 54, 129–147.

Ann, O., & Ukpere, W. (2014). The effect of workforce diversity on organizational performance of selected firms in Nigeria. Mediterranean Journal of Social Sciences, 5(10), ISSN 2039-2117.

Prieto, L., & Osiri, J. (2009). Linking workplace diversity to organizational performance: A conceptual framework. Journal of Diversity Management, 4(4), 13-22.

Joubert, Y. (2016). Diversity management content model based on organisational team sport intervention. African Journal of Hospitality, Tourism and Leisure, 5 (2), ISSN: 2223-814X.

Roberge, M, & Dick, R. (2010). Recognizing the benefits of diversity: When and how does diversity increase group performance. Human Resource Management Review, 20, 295–308.

Cunningham, G. (2009). The moderating effect of diversity strategy on the relationship between racial diversity and organizational performance. Journal of Applied Social Psychology, 39(6), 1445–1460.

Jabbour, D., Gordono, F., & Oliveira, J (2011). Diversity management challenges, benefits, and the role of human resource management in Brazilian organizations. Equality Diversity and Inclusion: An International Journal, 30(1), 58-74.

Allen, R., Dawson, G., Wheatley, K., & White, C. (2008). Perceived diversity and organizational performance. Employee relations, 30(1), 20-33.

Choi, S., & Rainey, H. (2010). Managing diversity in U.S. Federal Agencies: Effects of diversity and diversity management on employee perceptions of organizational performance. Public Administration Review, 109-121.

Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., Leonard, J., Levine, D., & Thomas, D., (2003). The effect of diversity on business performance. Human Resource Management, 42(1), 3-21.

Saxena, A. (2014). Workforce diversity: A key to improve productivity. Procedia Economics and Finance, 11, 76–85.

Busolo, E. (2017). The impact of workforce diversity on organizational performance: A case study of AAR group. Thesis for Master of Science in Organizational Development, United States International University Africa.

Lu, C., Chen, S., Huang, P., & Chen, J. (2014). Effect of diversity on human resource management and organizational performance. Journal of Business Research, 68, 857 –861.

Syed, J, & Kramar, R. (2008). What is the Australian model for managing cultural diversity? Personnel Review, 39(1), 96-115.

Kreitz, P. (2007). Best practices for managing organizational diversity. Journal of Librarianship, 1-49.

Richard, O. (2000). Racial diversity, business strategy, and firm performance: A resource-based view. Academy of Management Journal, 43(2), 164-177.

Guillaume, Y., Dawson, J., Otaye-Ebede, L., Woods, S. & West, M. (2017). Harnessing demographic differences in organizations: What moderates the effects of workplace diversity? Journal of Organizational Behaviour, J. Organiz. Behav, 38, 276–303.

Liao, H., & Joshi, A. (2006). Cross-level effects of workplace diversity on sales performance and pay. Academy of Management Journal, 49(3), 459–481.

Alderfer, C., & Sims, A. (2002). Diversity in organizations. Handbook of psychology, 12, 595-614.

Olsen, J., & Martins, L. (2016). Racioethnicity, community makeup, and potential employees’ reactions to organizational diversity management approaches. Journal of Applied Psychology, 101(5), 657-672.

Konrad, A. (2003). Special issue introduction: Defining the domain of workplace diversity scholarship. Group & Organization Management, 28 (1), 4-17.

Ensari, N., & Miller, N. (2006). The application of the personalization model in diversity management. Group Processes & Intergroup Relations, 9(4), 589–607.

Sultana1, M., Rashid, M., Mohiuddin, M., & Mazumder M. (2013). Cross-cultural management and organizational performance: A Content analysis perspective. International Journal of Business and Management, 8(8), ISSN 1833-3850.

Podsakoff, P, Mackneazie, S. & Lee, J. (2003). Common method baises in behavioral research: a critical review of the literature and recommended remedies. Journal of applied psychology, 88(5), 879-903.

Joseph, D., Jin, J., Newman, D. and O’Boyle, E. (2015). .Why Does Self-Reported Emotional Intelligence Predict Job Performance? A Meta-Analytic Investigation of Mixed EI. Journal of Applied Psychology, 100(2), 298-342.


Download data is not yet available.


How to Cite
Mulu, A., & Zewdie, S. (2021). The Effect of Diversity Management on Organizational Performance: The Case of Ethio-Telecom South West Region. European Journal of Business and Management Research, 6(2), 134–139.