Department of Economics
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Browsing Department of Economics by browse.metadata.advisor "De Kock, F. S."
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- ItemThe influence of firm diversity management competency on diversity-related outcomes and firm performance(Stellenbosch : Stellenbosch University, 2013-03) Carstens, Jennifer Gytha; De Kock, F. S.; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Industrial Psychology.ENGLISH SUMMARY : An emerging perspective of workplace diversity proposes that a well-managed diverse workforce holds inherent advantages for organisational performance. Little empirical evidence exists to support this view, which may partly be due to a lack of operational frameworks for diversity management at the firm level. This study aims to address two research gaps through (1) the development of a diversity management competency (DMC) framework which can guide diversity management efforts, and (2) the evaluation of the relationship between DMC, different diversity management outcomes (DMO), and firm performance. A mixed method approach was followed, which entailed an initial qualitative phase to explore the DMC construct and to develop a DMC measure. Next, a quantitative phase followed that tested (a) the reliability and validity of the instrument, as well as (b) the hypothesised relationships between DMC and important firm outcomes. Data were generated in the qualitative phase through interviewing managers (N = 12), using the Critical Incident Technique (CIT). Content analysis of the transcribed interviews culminated in distinctive diversity management competencies (DMCs), which represent clusters of diversity management practices, and a DMC measure which was subsequently content validated through both the Content Validity Ratio (Lawshe, 1975) and Cohen's (1960) approaches. The DMC questionnaire was then pilot tested on managers (N = 25) from three large companies to make final modifications. The final questionnaire consisted of eleven subscales (DMCs) and 98 items. The data for the quantitative phase were collected by administering on-line questionnaires measuring the study variables (DMC, DMO and firm performance) to managers (N = 77) from different medium to large companies (k = 33). The measures were item analysed and the hypotheses tested through correlation analysis, using SPSS. The measures indicated high internal consistency. A firm-level analysis of the research data showed that DMC, DMO and firm performance were strongly and significantly correlated, as hypothesised. This study makes three major contributions. First, it develops a firm-level DMC framework that outlines specific clusters of diversity management practices expected to contribute to firm performance by means of enhancing key DMOs. Second, it develops and validates a DMC measure which, along with the DMC framework, has practical utility for diagnostic and developmental purposes. Last, the analyses revealed that DMC, DMO and firm performance are significantly and strongly correlated, which may indicate that diversity management has a significant influence on firm performance. Because of the limited sample size, the results of this study should be cross-validated in larger samples. However, the present research creates an agenda for further confirmatory and exploratory studies on the relationship between diversity management and important firm outcomes.