Abstract:
Purpose
In this competitive environment, employees are the backbone of the companies. Employees’
knowledge, skills, and abilities encourage organizational performance, and these
competencies are dependent on the internal environment that’s why this study aims to
examine the impact of workplace diversity on organizational performance by mediating the
role of employee competency.
Methodology & Design
The research is quantitative in nature and based on a deductive approach. This study is based
on a convenience sampling technique with sample size 384 white collar employees working
in different companies. The questionnaires used as a data collection method. The
questionnaire is adopted from previous studies. Smart PLS is used as data analysis tool. For
hypothesis testing, Structural Equation Modelling is used in this study.
Findings
The findings showed that there is a significant relationship between workplace diversity and
perceived organizational performance with the mediating role of employee competency.
When employees work in diverse environment, their skills enhance. They become creative
and develop problem solving skills which leads to high organizational performance.
Limitations
This research is limited to employees working in Karachi. Only white-collar employees5
opinion is considered for research purpose. The findings ofthis study can only be generalized
if other countries ‘employee’s opinion is considered as the opinion of employees may vary
from culture to culture. Employees working in western companies may have different
opinion regarding diversity.
Recommendations It is recommended to managers to manage diversity appropriately in order to increase
organizational performance. Managers should create positive environment where employees’
skills and knowledge enhance. Managers should celebrate differences among employees and
offer diverse mentorships. It is necessary for managers to promote diversity at all human
resource practices, not just in hiring.
