CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Over the past several decades, the topic of gender workplace diversity has garnered much attention among business leaders, scholars, and policy makers across the globe. According to a recent global diversity report (Forbes Insights, 2011), economies throughout the world have been experiencing a growth in women’s labor force participation. This is especially the case for the more highly industrialized economies. Globally, about half of working aged women are employed in the labor force, compared with ~70% of men (United Nations, 2015). A recent report by the McKinsey Global Institute (2015) suggests that having women’s labor force participation equal to that of men’s worldwide could increase the overall global economic output by 26%, compared with current employment patterns. The potential to boost economic returns and address concerns over aging populations, as well as low fertility rates, have led government leaders in some Asian countries to offer business incentives aimed at improving women’s labor force participation. For example, the administration of South Korea’s President Park Geun-Hye has created initiatives to encourage women’s continued employment ollowing childbirth. While women’s overall labor force participation rate in South Korea is around 55%, the rate for younger women (25–29) is nearly 73%, compared with just under 56% for women ages 35–39 (OECD, 2015). A central concern for the Korean government is how to create policies that keep women in the labor force and set them on track for managerial positions. In 2013, women comprised only 10% of managerial positions in the central government, motivating the countries’ administrators to set a target of 15% by 2017 (Lee, 2015). The concerns over a lack of female workplace leadership have led to a growing body of research focusing on the economic benefits of gender diversity. A number of studies have examined the relationship between diversity and organizational productivity, with mixed results (Wellalage & Locke, 2012; Darmadi, 2013; Chapple & Humphrey, 2014; Nguyen, Locke, & Reddy, 2015; Post & Byron, 2015; Noland, Moran, & Kotschwar, 2016; Terjesen, Couto, & Francisco, 2016). Two different theories suggest opposite predictions for the effect of increasing female workforce/management participation. For example, studies drawing on the knowledge-based and decision-making perspectives have found that diversity in the workplace has a positive influence on organizational productivity, that is, labor productivity or financial profit (Watson, Kumar, & Michaelsen, 1993; Darmadi, 2013; Nguyen, Locke, & Reddy, 2015; Post & Byron, 2015; Noland, Moran, & Kotschwar, 2016; Terjesen, Couto, & Francisco, 2016). Conversely, some researchers have shown evidence of a negative relationship between diversity and organizational productivity, supporting the social identity theory (SIT), similarity/attraction, and homosociality perspectives (Pelled, Eisenhardt, & Xin, 1999; Darmadi, 2011; Wellalage & Locke, 2012; Holgersson, 2013; Chapple & Humphrey, 2014). Somewhat surprising, very few studies have accounted for a nonlinear relationship between gender managerial diversity and organizational productivity (for exceptions see Richard, Barnett, Dwyer, & Chadwick, 2004; Richard, Murthi, & Ismail, 2007). Because efforts to increase workplace diversity, particularly at the managerial levels, are likely to create some organizational uncertainties, it is reasonable to expect productivity outcomes to vary based on the extent to which such personnel changes have occurred. As previous research has shown, mixed work groups may increase and expand information in ways that can be beneficial to organizational productivity (Van Knippenberg, De Dreu, & Homan, 2004). However, as optimal levels of diversity are reached, intergroup conflict may interfere with productivity and productivity. At higher levels of managerial diversity, knowledge expansion and increased competitiveness may reflect positive productivity outcomes (De Carolis, 2003). Thus, in this paper, we develop models to account for a curvilinear relationship between gender diversity and organizational productivity, such that low and high, but not moderate levels of diversity positively influence organizational productivity. Our use of data over time allows for examination of changes in these relationships and can facilitate causal inference by controlling for certain unobserved characteristics of firms (Greene, 2003). In addition, under the contingency theory, previous studies have found that organizational productivity is likely to be influenced by various factors such as environment, industry type, gender supportive culture, or task (Tosi & Slocum, 1984; Drazin & Van de Ven, 1985; Richard et al., 2004; Richard, Murthi, & Ismail, 2007; Post & Byron, 2015; Hoobler, Masterson, Nkomo, & Michel, 2016). The present study adds to this literature by considering the moderating role of family-friendly policies in the diversity and productivity relationship. Because family-friendly policies play a pivotal role in reducing work–family conflict for dual-income households, we anticipate that the relationship between gender diversity in management and organizational productivity will be stronger in familyfriendly workplaces.

1. STATEMENT OF THE PROBLEM

One of the problems we have in Nigeria working environment is the issue of availability of labour; there are more of the male population in the Nigeria labour force than women. This therefore affects the availabilty of labour. In the banking industry for example, there is need for improved gender diversity since the banking industry have marketing division and the customer service division. Therefore having equal women and men is very important in an organisation. Lastly there have been series of studies on gender diversity but not even a single study based on the effect of gender diversity on organisational productivity; hence a need for the study.

1.3 AIM AND OBJECTIVES OF THE STUDY

The main aim of the research work is to determine the effect of gender diversity on organisational productivity. The objectives of the study are:

1. To determine the relationship between gender equality and organisational productivity in access bank Nigeria plc
2. To determine the importance of gender diversity and organisational productivity to access bank plc
3. To determine the challenges of gender diversity promotion in access bank plc
4. To identify the factors affecting gender diversity and organisational productivity in access bank plc
5. To recommend ways to improve gender diversity and organisational productivity in access bank plc

1.4 RESEARCH QUESTIONS

The following research questions guide the objectives of the study:

1. What is the relationship between gender equality and organisational productivity in access bank plc?
2. What is the importance of gender diversity and organisational productivity to access bank plc?
3. What are the challenges of gender diversity promotion in access bank plc?
4. What are the factors affecting gender diversity and organisational productivity in access bank plc?
5. What are the ways to improve gender diversity and organisational productivity in access bank plc?

1.5 STATEMENT OF THE HYPOTHESIS

H01: there is no significant relationship between gender equality and organisational productivity in access bank plc

H02: there is significant relationship between gender equality and organisational productivity in access bank plc

1.6 SIGNIFICANCE OF THE STUDY

The study on the effect of gender diversity on organisational productivity will be of immense benefit to the entire access bank branches in Nigeria. The study will establish a correlation between gender diversity and organisational productivity. The findings of the study will educate the entire management of access bank plc on the benefit of gender diversity in an organisation. The study will also serve as a repository of infromation to other researchers and students that desire to carry out similar research on the above topic. Finally the study will contribute to the body of the existing literature on the effect of gender diversity on organisational productivity.

1.7 SCOPE OF THE STUDY

The study covers on the effect of gender diversity on organisational productivity with focus on access bank plc

1.8 LIMITATION OF THE STUDY

FINANCIAL CONSTRAINT- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

TIME CONSTRAINT- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 DEFINITION OF TERMS

GENDER DIVERSITY: Gender diversity is equitable or fair representation of people of different genders. It most commonly refers to an equitable ratio of men and women, but may also include people of non-binary genders.

ORGANISATIONAL PRODUCTIVITY: Organisational Productivity is the capacity of an organisation, institution, or business to produce desired results with a minimum expenditure of energy, time, money, personnel, materiel, etc.

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