Effect of Diversity Management on Organizational Performance of Information, Communication and Technology Firms in Nairobi County

Authors

  • Margaret Wangui Mugwe Jomo Kenyatta University of Agriculture and Technology
  • Dr. Thomas Chuma Mose Jomo Kenyatta University of Agriculture and Technology

DOI:

https://doi.org/10.47941/hrlj.459

Keywords:

Creativity, Innovation, Employee Commitment, Corporate Image, Human Capital Pool, Organizational Performance

Abstract

Purpose: The study sought to establish the effects of diversity management on organizational performance of ICT firms in Nairobi County. The study specifically sought to establish the effects of creativity and innovation, employee commitment, corporate image and human capital pool on organizational performance of ICT firms in Nairobi County.

Methodology: The study targeted ICT firms in Nairobi County categorized into networking, software development, hardware maintenance and distribution, communication and system security. The study adopted a purposive sampling technique to acquire a sample of 15 firms. The unit of observation comprised eight employees per each of the targeted firms thus making a total of 120 respondents. The study used a census survey since the population was small and adequate for study. Primary data was gathered through questionnaires. A pilot study was conducted to test the validity and reliability of the data collection instruments. The data was analyzed both qualitatively and quantitatively through SPSS, results presented in form of tables, and figures.

Findings: The findings show that creativity and innovation have a positive and significant effects on the performance of ICT firms as shown by β = 0.233 and Sig = 0.010 <0.05. Employee commitment likewise, has a positive and significant effects on the performance of ICT firms as shown by β = 0.397 and Sig = 0.001 <0.05. The results further show that corporate image has a positive and significant effects on the performance of ICT firms as shown by β = 0.121 and Sig = 0.012 <0.05. In addition, human capital tool has a positive and significant effects on the performance of ICT firms as shown by β = 0.406 and Sig = 0.000 <0.05.

Unique contribution to theory, practice and policy: The study recommended that the management of ICT firms in Nairobi County should focus on enhancing elements that boost the levels of innovation amongst employees in the firm since the practice bears positive and significant effects on performance of the firm. The study also recommended that the management of ICT firms in Nairobi County should focus on advancing the factors that contribute to increased levels of employee commitment in the firm since the practice bears positive and significant effects on performance of the firm. The study further recommended that the management of ICT firms in Nairobi County should focus on improving the corporate image since the practice bears positive and significant effects on performance of the firm. The study finally recommended that the management of ICT firms in Nairobi County should advance their human capital pool since the practice bears positive and significant effects on performance of the firm.

Author Biographies

Margaret Wangui Mugwe, Jomo Kenyatta University of Agriculture and Technology

Post Graduate Student: College of Human Resource and Development, Jomo Kenyatta University of Agriculture and Technology

Dr. Thomas Chuma Mose, Jomo Kenyatta University of Agriculture and Technology

Lecturer: College of Human Resource and Development, Jomo Kenyatta University of Agriculture and Technology

References

Agrawal,V. (2012) "Managing the diversified team: challenges and strategies for improving performance", Team Performance Management: An International Journal of Management, 18(7/8), 89-97.

Backman, M. (2013). Human capital in firms and regions: Impact on firm productivity. Papers in Regional Science, 93(3), 557-575.

Creswell, J.W. (2014). Research design qualitative, quantitative, and mixed methods Approaches,4th edition. SAGE Publications, Inc.

Deloitte (2014). Global Human Capital Trends 2014: Engaging the 21st – century workforce. New York: Deloitte University Press.

Government of Kenya (2011). National Gender and Equality Commission Act. Government Printer, Nairobi.

Harold, A. P and Vincent R. K, (2012). Managing Workplace Diversity: Issues and Challenges. 2(2).

Harsh Pamnani (2016) Importance of Corporate Image. Retrieved January 12,2019, from https://businessworld.in article; Importance-Of-Corporate-Image.

Hoang, T. G., (2012) Reconceptualizing Organizational Commitment Using the Theory of Reasoned Action: Testing Antecedents of Multiple Organizational Behaviors Dissertations and Theses. Paper 109.

Kundu, S. & Mor, A. (2016). Effect of Diversity Management on Employees Organizational Commitment: A Study of Indian Organizations. Journal of Strategic Human Resource Management. 5(10), 96-110

Massey, J. E. (2003). A Theory of Organizational Image Management: Antecedents, Processes & Outcomes. Fullerton, CA 92834-6846 p. 17-20.

Meyer, J.P & Allen N.J. (1997) Commitment in the workplace: Theory, research, and application. Thousand Oaks, CA: Sage

Moore, F. (2011). Why diversity is critical. Journal of Accountancy, 148(1418), 71-92.

Mugenda, O. & Mugenda, A. (1999). Research Methods, Quantitative and Qualitative Methods. Nairobi, Kenya: Acts Press.

Mugenda, O. & Mugenda, A. (2003). Research Methods, Quantitative and Qualitative Methods. Nairobi, Kenya: acts press.

Mullins, L. J. (2010). Management and Organisational Behaviour (9th ed.). England: Pearson Education Ltd.

Mwikali, J. & Kyalo, K. (2015). Effects of Diversity in Workplace on Employee Performance e in the Banking Industry in Kenya. The Strategic Journal of Business and Change Management, 2(53), 145-181.

Namubiru, B., Nkote N., Joseph N. & Donatus M.R. (2014); Corporate Image and Organizational Performance of State-Owned Enterprises Monitored by Privatization Unit (PU) Uganda, 6(17).

National Cohesion and Integration Act no. 12. (2012) National Council for Law Reporting.

Ndungu, G.C. & Njeru, A. (2014). Assessment of factors influencing adoption of agency banking in Kenya: The case of Kajiado North Sub county. International Journal of business and commerce. 3(8), 39-56.

Njeri, A. (2017); Effects of Innovation Strategy on Firm Performance Telecommunications Industry: A Case of Safaricom Kenya Limited.

Obasan, K. (2012). Organizational Culture and Its Corporate Image: A Model Juxtaposition.

Odhong, E. A.,Were S., & Omolo, J. (2014). Effect of Human Capital Management Drivers on Organizational Performance in Kenya. A Case of Investment and Mortgages Bank Ltd. European Journal of Business Management, 2(1):341-356.

Odhong, E. A. (2018); Influence of Human Capital Practices on Employee Performance in the Private Security Industry in Kenya.

OECD. (2013). Regions and innovation: collaborating across borders. OECD review of regional innovation series.

Ogbo, A. & Ukpere, W. & Kifordu, A.A. (2014). The Effect of Workforce Diversity on Organizational Performance of Selected Firms in Nigeria. Mediterranean Journal of Social Sciences. 5,231

Okpara, F.O. (2007). The Value of Creativity and Innovation in Entrepreneurship. Journal of Asia. 3 (2): 1-14.

Omolo, J. (2013). Employment Challenges in Kenya, African Journal of Economic Review,1(1).

Orodho, J.A. (2005). Techniques in Writing Research Proposals and Reports in Education and Social Sciences 2nd Edition. Nairobi Bureau of Educational Research Kenyatta University.

Ozgur, O. (2016) Global Workforce Diversity Management and The Challenge of Managing Diversity: Situation on World and In Turkey. 4(1),31-51.

Raja, I. S., Muhammad, B.M., Ayeha N. & Awais, M. (2015); Impact of Employee Commitment on Organizational Performance. A Survey Based Study on Education Sector of Sahiwal & Okara Pakistan.

Richard, J. P. & Devinney, T & Yip, G. & Johnson, G. (2009). Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management. 35(6), 556-569

Rogers E.M. (1983). Diffusion of Innovation,3rd edition New York, Free Press.

Saasongu, N. (2015). Effects of Leadership Style on Organizational Performance in Small and Medium Scale Entreprises in Nigeria. International Journal of Research in Management and Business Studies, 2(2), 24-25.

Sahin, I. (2006) Detailed review of Rogers’ Diffusion of Innovations Theory and educational technology-related studies based on Rogers’ theory. The Turkish Online Journal of Educational Technology. 5(2), 3.

Salarzadeh, J.H. (2015). An Overview of Organizational Performance Index: Definitions and Measurements.

Sethibe, T. & Steyn, R. (2016); ‘Innovation and organisational performance: A critical review of the instruments used to measure organisational performance’, Southern African Journal of Entrepreneurship and Small Business Management 8(1), 50.

Shen, J., Chanda, A., D’Netto, B., & Monga, M. (2009). Managing diversity through human resource management: An international perspective and conceptual framework. The International Journal of Human Resource Management, 20(2), 235–251.

Steven, S. (2017). Dynamic capabilities and organizational performance: The meditating role of innovation. Journal of Management & Organization.

Student Learning Centre (SLC) (2012). Critiquing Research Articles, Flunders University.

Syed, J., & Tariq, M. (2017). Global Diversity Management. Oxford Research Encyclopedia of Business and Management.

Tavari, M., Sokhakeian, M. & Mirnejad, S.A. (2008); Identification and Prioritize the Factors Affecting the Productivity of Human Resources with Modem Technique. Journal of Industry Management; 1(1): 102

Trochim, M. (2016). Research Methods: The Essential Knowledge Base: Boston, USA: C engage Learning.

Ukenna, S.& Ijeoma, N. & Anionwu, C. & Olise, M. (2010). Effect of Investment in Human Capital Development on Organisational Performance: Empirical Examination of the Perception of Small Business Owners in Nigeria.

United Nations Conference on Trade and Development (2011). Annual Report.

United Nations Economic Commission for Africa (UNECA) (2014). Social Development. Retreaved form https://www..uneca.orgsocialdevelopment&us.

Waithaka, T. W., Francis, N. K & Justus, M. M. (2017); Corporate Image and Brand Performance of Kenyan Universities.

Wambui, T.W., Wangombe, J.G., Muthura, M.W., Kamau, A.W. & Jackson, S.M. (2013). Managing Workplace Diversity: A Kenyan perspective. International Journal of Business and Social Science, 4(16).

Yi-Wen L., Yu-Min W., Yi-Shun W. & Yi-Min T. (2015) Understanding the dynamics between organizational IT investment strategy and market performance; Computers in Industry

Zhang, L. & Sternberg, R. (2011). Revisiting the Investment Theory of Creativity. Creativity Research Journal - Creativity Res J.

Downloads

Published

2020-10-16

Issue

Section

Articles