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Chapter theory and his research showed that

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Chapter
Two: Literature Review

2.1
Introduction

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This
chapter consists of reviews on research, concepts and opinions
relating to diversity
and diversity management exist. It also
highlights the conceptual framework which critically showed the
relationship between the variables under consideration.

2.2
Theoretical Framework

The
theoretical framework is described as a structure that can support a
theory of a research study. Basically a theories are formulated to
explain, predict, and understand phenomena and, in many cases, to
challenge and extend existing knowledge within the limits of critical
bounding assumptions.

In
this case then theoretically, the workplace diversity literature
espouses the following different
theoretical
frameworks for the examination of the possible effects of workplace
diversity.
The
first theory is in accordance to Turner (1987) theory. The theory is
based on social categorization that is it describes employees based
on attributes like ethnicity, gender or age. Turner argues that this
results in stereotyping. However, Tsui, Egan and O’ Reilly (1992),
proposed that identifying employees with distinct groups such as
ethnic background may disrupt group dynamics. Later on Shaw (1993)
agreed with their research on the theory and his research showed that
ethnic identification evoked more disliking, distrust and competition
than when categorization arises from within the organization.
The
second theory is in accordance to Berscheid & Walster (1978)
theory. The theory is based on similarity or attraction that is the
non-salient attributes like values and education, which increase
interpersonal attraction and attachment.
The
third theory is in accordance to Wittenbaum & Stasser (1996)
theory. The theory is based on information and decision-making that
is it examines the impact of distribution of information and
expertise on work-teams. The theory perspective is to lead to
positive effects of diversity since the work-teams are expected to
process information differently thus bringing together differing
viewpoints hence in turn it can lead to more creativity and increased
performance.
However,
Michaéla et al. (2003) argued that these theories can lead to
different and at-time contradictory hypotheses in regards to the
effects of diversity on group process and performance for example on
social categorization and similarity theory, its argued that it can
lead to a prediction of negative effects, such as decreased
satisfaction and commitment, group communication reduction, and
increased labor turnover.

2.3
Conceptual Framework

Conceptual
Framework is an analytical tool with several variations and contexts.
It is used to make conceptual distinctions and organize ideas. Strong
conceptual frameworks capture something real and do this in a way
that is easy to remember and apply.
In
this study the conceptual framework is based on education, ethnicity
and gender on the performance of employee at county government of
Nairobi.

Education

Ethnicity

Gender

Performance

Fig
2.1 Conceptual Framework

2.3.1
Education background and work performance

Education
background is important to employees thus its kind of difficult for
the employees to find a job and perform well without adequate
education background.

Tracy
and David (2011) found that employees whose training, experience, or
education is judged to be inadequate the employers commonly reject
employing them. Besides that, in 2009, Daniel study shows that
various levels and types of education might expect different mobility
rates. For example, the occupations available to those with working
experience but does not possess a certified tertiary paper may differ
from those who possess such education level. However, Mobility may
differ
across these occupations, causing the mobility of
individuals with working experience to be different from those with
non working experience but possesses a degree certificate. Other
researchers namely Zeng, Zhou, and Han (2009) have found that those
high-level managers with higher education and the staff whose length
of service is 11 to 15 years shows unusual decline in work
performance because they have not found the suitable development
space, so temporary disengagement happens.

2.3.2
Ethnicity and work performance

Ethnicity
is the state of belonging to a social group that has a common
nationality or cultural tradition.
According
to Timmermans, 2011; Milliken and Martins, 1996; Harrison and Klein,
2007 study, Members of the minority group can experience less job
satisfaction, lack of commitment, problems with identity, perceived
discrimination, etc. However,
when the minority grows,
some of the mentioned problems may disappear.

According
to Timmermans, (2011) study, ethnicity can be used as a proxy for
cultural background and diversity in ethnicity can be expected to be
positive for innovative performance, since it broadens the viewpoints
and perspectives in the firm (Richard, 2000). Moreover, based on
Timmermans (2011) study some levels of diversity in ethnicity might
be positive associated with innovation, high degree of diversity in
ethnicity might be negative since it can create conflict and cliques
due to social categorization (Dahlin, 2005).
Opstal
(2009) study stated that ethnic diversity can have both advantages
and disadvantages for the organization. Jackson (2004) cited examples
of ethnic diversity disadvantages as communication problems and
conflict. When managers ignore the clashes caused by ethnicity, they
might be converted into personal and emotional conflict in the long
run and therefore damage organizational culture, employee morale and
overall sharp reduction of organizational performance.

In
2008 Van Esbroek and van Engen stated that management of diversity is
important to help an organization benefit from the advantages and
minimize the disadvantages of ethnic diversity that can have negative
effect on employee and organizational performance.

2.3.3
Gender and work performance

Gender
is the state of being male or female. According to Connell (2002),
gender refers to a description of masculinity or femininity.

Leonard
and Levine, 2003;organizations prefer to hire males workers compared
with women because they are perceived to have better performance and
ability to manage their jobs. Kossek, Lobel, and Brown (2005) states
only 54% of working-age women are in the workforce worldwide compared
to 80% of men.

However,
according to Kochan, Bezrukova, Ely, Jackson, Joshi, Jehn, Leonard,
Levine, and Thomas (2002), providing an equal job opportunity to
women is vital to improve performance of employees in an
organization, The research by Kundu, 2003 states that hiring woman,
minorities and others will help organization to tap niche markets
therefore we can say that an organization with diverse workforce will
provide superior services because they can understand customers
better.

2.3.4
Employee Performance

Cascio
(2000), defined performance as working effective which is the way in
which somebody does a job, judged by its effectiveness. It is how
well an employee is fulfilling the requirements of a job (Rue &
Byars, 1993). Smith (2010), argued that good workforce diversity
practices in the area of human resources are believed to enhance
employee and organizational performance. According to Cornelius
(1999), effective performance can be a key determinant in the
achievement of business objectives while maximizing the contribution
of employees. Schuler (1992), observed that a performance appraisal
system should be objective, relevant to the job and the organization,
fair to all employees and offers no special treatment.

2.4
Empirical Review of Literature

Empirical
Review is is research using empirical evidence. It is a way of
gaining knowledge by means of direct and indirect observation or
experience. In this section, the empirical review resultant from
studies conducted in two organizations namely; Banking sector in
Kenya and Kenya Ports Authority (KPA), which were conducted by
Munjuri and Maina (2013); Ngao and Mwangi (2013) respectively.

2.4.1
Banking Sector in Kenya

Commercial
banking started in 1896 in Kenya. As of December 2010 the Kenya
Commercial bank group was the largest financial service in Kenya with
an asset base valued at US$3.5billion. It had the widest network of
banking17 outlets comprising nearly 220 branches in Kenya, Rwanda,
Southern Sudan, Tanzania and Uganda Talk (2012). The study under
review was carried out in Kenya within Nairobi Region and the target
population was 4,000 employees Munjuri et al. (2012).

2.4.2
Kenya Ports Authority (KPA)

The
Kenya Ports Authority (KPA) is a state corporation charged with the
responsibility of managing the Port of Mombasa, and other ports along
the Kenyan coastline and Kisumu. The workforce consists of over 5,000
employees drawn from all ethnic backgrounds (Beja, 2014).

2.4.3
General Review on Employee performance

The
study on effect of education on employee performance gave an
observation that the more balance in education types an organization
possesses the higher the likelihood of having innovations. A further
observation made is that an organization may make an effort to
compensate for educational or skill deficiencies of group members by
offering specialized training that bring employees up to the required
standards (Mosko, 1996).

The study on effect of education on employee performance on
ethnically homogeneous organizations, the ethnic differences among
members of diverse teams becomes more salient and are more likely to
interfere with performance. They further observed that in
heterogeneous organizations, the ethnic identities of team members
may be less salient and therefore they create less disruption.
Based
on Banking Sector in Kenya the study by Munjuri (2012) revealed that
the banking sector had strategies for support to gender groups, and
equal employment opportunities. The various tests of hypotheses
showed a significant level of association between employee
performance and the mean productivity levels of the bank workforce
when categorized by gender. However based on Kenya Ports Authority
(KPA) the study by Ngao (2013) indicated that gender, greatly
impacted on organizational performance and success.

2.5
Literature Summary

From
Janssens et al. (2003) study workforce diversity is a complex,
controversial and indeed a political phenomenon. Thus any diversity
studies should be as inclusive and engage a broad overview of the
dimensions of diversity.

Basically
Literature reviews of relevant theoretical models and variety of
approaches to employee’s performance provides conceptual background
to strengthen the argument of this research.

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