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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

JUNE 2011<br />

VOL 3, NO 2<br />

Workgroup Performance<br />

Workgroup performance means the overall performance of the employees working in a<br />

group, unit, department or section. Employees divided into different categories either on the<br />

basis of demographics or on a <strong>gender</strong> base. When these employees work in a group or section,<br />

the issues of diversity will arise. If this diversity is fully managed through policies and programs,<br />

it will increase the overall performance of the group; otherwise, conflicts will arise in lack of<br />

performance. Employees feel comfortable if they made self-selected group either made on<br />

<strong>gender</strong> base or area and the performance will be better. Workgroup performance was evaluated<br />

through the productivity, quality of work that they performed and the satisfaction of the<br />

employees (Cragan & Wright, 1995).<br />

Job Satisfaction:<br />

Job satisfaction is a hot issue in this era and at the same time, retention of an employee is<br />

becoming a more challenging job for Human Resource Managers. Satisfaction with job is a<br />

degree to which how much an employee is satisfied with his job (Bettencourt & Brown, 1997).<br />

Employees, facing dissatisfaction with their jobs, have many reasons like lack of rewarding<br />

system, discrimination between employees, non-cooperative supervisors and colleagues, and<br />

uncomfortable work environment.<br />

In youth dominant culture, it is evident that those employees who are older, they are<br />

much dissatisfied and de-motivated and resulted into they are terminated from their jobs and<br />

sometimes they are also discriminated (Barak and Levin, 2002). In Government Sector<br />

Organizations, employees are recruited through a quota system as well as on merit. The people<br />

of Pakistan prefer the Government service and they retain till retirement whether they are<br />

satisfied with their jobs or not.<br />

Hypothesis Development<br />

Much of the work on diversity management was in descriptive nature that could not help<br />

in evaluating the assumption about the links between job satisfaction and performance (Pitts,<br />

2009). Little work has been done on indentifying the relationship between diversity management<br />

and work outcome which includes workgroup performance and job satisfaction.<br />

Diversity Management effect on workgroup performance<br />

H1<br />

Diversity Management leads to higher workgroup performance.<br />

This first hypothesis is based on the literature that diversity management will have a<br />

significant impact on workgroup performance because the workforce diversity in terms of<br />

ethnicity, race, and <strong>gender</strong> is increased day by day. Organizations that have a diverse workforce<br />

with well-adapted differences have a high retention rate and the performance as a whole of the<br />

group will be increased. Bureaucracy theory if true and organization provide the environment<br />

like the employees feels citizen of that organization so the retention rate and performance of the<br />

group will increase (Pitts, 2009).<br />

Diversity Management’s effect on Job satisfaction:<br />

H2<br />

Diversity management leads to higher job satisfaction.<br />

The second hypothesis is the relationship between diversity management and job<br />

satisfaction. In general, in the presence of diversity management there will be no job satisfaction<br />

for all employees. Literature shows that if the diversity management is strong then the people of<br />

different color, they show job satisfaction. It might be possible that the management is taking<br />

care of people of different color (Pitts, 2009). Therefore it is trying to identify that people of<br />

different geographical areas are satisfied with their jobs in the presence of diversity management.<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 536

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