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Effectsof Gender Diversity on Job Performance in the Banking Industry

DIS-9901A Assignment # 3

Student Name

Professor Name

Date

Contents

1.0 Introduction

3
1.1 Basic Concepts of the Study 3

1.2 Facts and Relevant Contexts

4

1.3 Overview on the To1pic

7

2.0 Background of the Study

8

3.0 Statement of the Problem

9

4.0 Purpose of the Study

12

4.1 Study Method

12

4.2 Study Design

12

4.3 Variables

12

4.4 Target Population

13

4.5 Sample Frame

13

4.6 Sampling Techniques

13

4.6 Sample Size

13

4.7 Data Collection Method

13

4.8 Data Analysis

14

4.9 Summary of Results

15

5.0 Research Questions

16

6.0 Research Method

18

7.0 References

21

Appendix

24

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1.0 Introduction

Diversity is an aspect in that we know of and deal with in our daily lives. Diversity applies in all organizations. Over the years, organizations and companies have embraced workforce diversity and invested more in diversity programs because organizations that embrace a culture of workforce diversity seem to attract broader talent pools of employees. This increases the organization’s reputation and strengthens its cultural values. Workforce diversity involves different aspects to include gender, age, education, and ethnicity amongst others (Anitha, 2014). This study seeks to examine the effect of gender diversity in the banking sector by using control variables of age, ethnicity, and education diversity. The study also establishes the relationship between the variables using four research questions and a sample size of 230 middle managers from 13 headquarter banks because middle managers make most employment decisions and they interact with the employees frequently. The study also uses qualitative and quantitative research methods. However, this is not the first study focusing on gender diversity in the banking sector, but there is little literature on the topic. Therefore, this study aims to add to the little existing literature on the topic and provide further research.

1.1 Basic Concepts of the Study

Gender diversity might add value to an organization like resulting in more social sensitivity when solving problems and an increase in diverse thoughts resulting in better performance of the company (Anitha, 2014). Many studies show evidence of a positive relation between gender diversity on executive and board position and job performance of firms. However, little is known about the effects of gender diversity on job performance in the banking sector. A research gap exists on this topic and there is a need for further research. This study achieves this by using various research methods and design, using an appropriate sample for efficient results, and research questions.

The study uses descriptive research design. Descriptive research design aims at describing the population systematically and accurately by answering the how, when, and where questions. This design uses a variety of qualitative and quantitative methods to examine the variables. A researcher observes and measures variables in this design. The main research tool for this study was questionnaire. The study uses both qualitative and quantitative research methods to answer the four research questions. Using this mixed approach will provide adequate data to provide a better understanding of the topic. However, most of the data in this study was collected through quantitative research method.

The dependent variable was employment performance and the independent variable was gender diversity. The control variables in the study were ethnicity, education and age diversity. The measures of performance in this study are efficiency, profitability, talent recruitment and retention, and corporate reputation (Hoff, 2014). The questionnaire was administered on a sample size of 230 middle-level managers and 221 responses were obtained which accounted for 96.08% response rate. The study targeted middle-level managers from the three tiers of commercial banks in the state of Ohio. The study used stratified random probability sampling technique. Data collection was from both primary and secondary sources using both qualitative and quantitative methods. Data analyses for quantitative data were done through descriptive statistics and the statistical package for social sciences (SPSS version 21). Qualitative data was analyzed through content analysis. An OLS multiple regression models showed the relationship between the dependent and independent variables.

1.2 Facts and Relevant Contexts

The banking industry is exploding and has faced challenges like workforce diversity which has both negative and positive impact of performance depending on how it is managed. Now, banks have embraced diversity as it can be seen on their website where they have a “Diversity and Inclusion” section. Banks all over the world have made it a standard to virtually highlight their new policy that ensures equal opportunities for people from all genders (Anitha, 2014). However, few banks have been able to fully achieve gender diversity. A study by SKEMA on 71 banks in 20 countries in 2018 showed that although more women are joining the workforce in banking industry, women face the challenge of moving up the hierarchy. Diversity and inclusion lags in American banks. Many studies have focused on management of work diversity and performance of an organization, but few haves focused specifically on the effects of gender diversity and job performance in banking industry in the United States.

Job performances are an important factor in determining the performance of any organization. Previous study show that matching employees wrongly to job characteristics leads to low job performance. Correct matching of employees and job characteristic leads to higher job performance (Farooqui & Nagendra, 2014). Job performance shows the non-financial and financial outputs of employees related directly with the organizational performance. Many researchers have done studies on job performance with many hypothesized studies having a positive effect.

Gender inequalities have been a subject for debate for decades. Organizations are seen to hire more male workers than women because of the perception that men perform better and can manage their jobs better (Farooqui & Nagendra, 2014). Also, women continue to have an upper hand in domestic work and caregiving. However, equal opportunity to women is important for improved performance in any organization. A study by Joshi and Jackson (2003) showed the relationship between gender diversity and performance in the executive positions was positive. However, a study by Jayne and Dipboye (2004) found that gender diversity does not result in positive results like build commitment, or improve talents. Recent studies show gender discrimination affects the performance of employees.

Employers use education background to judge the employability of an employee. Employers will not hire an employee whose education or training they deem inadequate. Studies have shown that the employee productivity depends on their education level; a more educated employee is more productive. Also, when advertising for vacancies employers state mandatory education qualifications for a position.

Multicultural workforce has been the focus since 1990s and it continues to gain momentum. Organizations are increasingly using teams to increase business performance, employee satisfaction and use greater participation (Anitha, 2014). The advantage of multicultural in business is having different ethnical views in solving problem which results in increased performance of the team. Ethnicity is used as a proxy for cultural diversity and it can lead to positive performance as it broadens the perspectives and viewpoints of a firm. However, some study show that high ethnicity diversity can lead to conflict and communication problems because of social categorization. As an organization becomes more diverse in ethnic lines, it calls for more management on how different people interact at work.

Many organizations are embracing age diversity including banks. Individuals tend to identify themselves with certain groups (Hoff, 2014). In the same way, if the age of an employee is viewed as relevant for distinction, it may lead to differences in age groups in an organization. This leads to emotional conflict and age discrimination which affects productivity and performance. Some researchers believe that increased age diversity can lead to challenges for HR management. However, Inmyxai and Takahashi (2008) argued that older people possess more experience and are more mature while young employees will learn new things and ideas. Therefore, a combination of this two generation creates a viable corporate culture as the values complement each other. This leads to better performance.

1.3 Overview on the To1pic

Based on the information provided above on different diversities, there are inconclusive outcomes of diversity on job performance. Therefore, this study seeks to provide a conclusion on the effects of gender diversity on job performance in the banking industry. By doing this, it will contribute to the existing body of knowledge in United States and other countries. The motivation is to examine if American banks have similar or dissimilar effects compared to the existing literature on the topic (Hoff, 2014). The study used the banking sector because it is among the most regulated and best governed sector in the United States. Also, it is one of the biggest employers in the country. Gender diversity is an ongoing subject that needs to be incorporated in the banking sector too.

2.0 Background of the Study

Modern-day workforce has become varied in comparison than before because of changes in demographic factors like immigration and globalization. The minority workforce in the United States is rising with an estimated rise of 25% by 2050. Some countries like Korea and Japan are still highly male dominated and homogenous in all aspects of social life. However, these countries have experienced economic development over the recent decades that have led to fundamental changes in the labor market. More companies have adopted policies like layoffs and downsizing. Managing diversity in Japan and Korea covers mainly are of HR majorly because of ethnic homogeneity, but the main debate is rooted on gender issues. A study done in 2003 in Korea showed that women participation in the economy was 48.9% while in Japan the rate of women participation in labor was 48.3% in 2004.

Some countries have embraced diversity like Egypt that has been taking an increasing trend in the couple of years. Their workforce comprises of individual who are fluent in several languages like Arabic, English, German and French with highly diverse education backgrounds. Nigeria is also ethnically heterogeneous and characterized by demographic diversities. Developing and developed countries have been caught up in the globalization web which has led to demographic diversity in the workforce.

3.0 Statement of the Problem

Gender diversity and inclusion of women in top executive management and boards of directors might add value to an organization. For example, gender diversity can add value to problem solving and increased thought resulting in better performance of the company by adding diverse ideas and perspectives (Joshi, 2017). Including more gender diversity in a firm may increase the effectiveness of the firm because of a better understanding of the needs of stakeholders, better risk management and business practice. It also enhances decision making by adding new ideas and perspectives. The banking sector is one sector that can enjoy gender diversity.

The banking industry faces many challenges from increased competition, a high rate of technological growth to increased regulations by the government. This has led banks to compete for the best employees. Workforce diversity is achieved through gender diversity, age diversity and ethnicity diversity. Research show that proper management of workforce diversity has a positive outcome in any organization (Rizwan et al. 2016). Studies have shown that organizations with a high level of workforce diversity management are effective in producing corporate cultures that pioneer capabilities and fresh idea for survival.

There has been an increase in workforce gender diversity in firms and organizations. However, few studies have focused on examining the relationship between gender diversity and job performance for over three decades. Also, these studies provide conflicting results on diversity. Empirical research found that gender diversity is either good or bad for an organization (Ali et al. 2009). For example, Svyantek and Bott (2004) did a review on nine diversity studies investigating this relationship and they found inconsistent results. The studies showed positive effect, negative effect, zero effect and nonlinear effects. If business turned to this body of literature for hiring practices insights, they would find conclusive evidence on what to do.

Some studies says that fostering gender diversity improves the outcomes of the firm while others claim the opposite. Another body of study claims that gender diversity and organizational performance are not connected (Joshi, 2017). This leaves private sectors including the baking sector to rely on past evidence, anecdotal assertions and stereotypes. This creates a problem.

Despite efforts by the government to foster gender diversity at the workplace through policies and practices, gender diversity has fallen short in the sector. This is partly because of the resistance by the banking sector because of lack of rigorous evidence on how gender diversity shapes their outcomes. The existing literature only examines gender diversity in senior management and corporate rooms, but reaching these positions depends on the resources and opportunities women afforded during the early years of their careers (Campbell & MÃnguez-Vera, 2008). For example, if women are missing in the traditional banking career, they will be absent in boardrooms and senior management. The research is lacking here. Limitation of data available has confined researchers to examine gender diversity in terms of men and women in senior management position and corporate boardroom (Joshi, 2017). However, gender diversity is not about numbers, but the opportunities women can access and challenges they face across all ranks and stages of their professional advancement.

To understand how gender diversity affects job performance depends on the context in which the relationship is being examined. Thus, there is a need to do both qualitative and quantitative data collection and analysis to capture the complex reality, instead of relying on an incomplete understanding of what gender diversity means (Joshi, 2017). This means the question that firms should ask is are banking sectors fostering an inclusive environment that leverages the benefits of gender diversity for better performance of the sector? This study is not the first, but it will add to the little existing literature on the effects of gender diversity on job performance. This study will provide future researchers with literature that they can use for further research. It will also provide banks with a point of reference on the relationship between gender diversity and job performance.

4.0 Purpose of the Study

Most of the data that exists primarily focus in gender composition in the boardroom, but this sample size is small. This makes it hard to test the effect of gender diversity in small magnitude. This study expands on what makes up improved performance of the banking sector by testing how gender diversity impacts performance of the firm through its research methodology.

4.1 Study Method

This study examines the effects of gender diversity on performance in the banking industry. These measures of performance are profitability, efficiency, corporate reputation, and talent recruitment and retention. The population in this study comprises 13 commercial banks headquarters in the state. The sample size was 230 middle level managers out of which 221 responses were obtained accounting for 96.08% response rate. The study used an OLS multiple regression model to analyze data collected. Also, the study used three control variables age, education and ethnicity diversity.

4.2 Study Design

This study uses descriptive research design. This design observes and describes the behavior of the sample without affecting it (Cooper & Schindler, 2006). The study adopted this design because it has the advantage of using observations, interview, and questionnaires without changing the environment of the study.

4.3 Variables

The independent variable is gender diversity in this study and the dependent variable is employment performance. The control variables will be age, ethnicity, and education diversity.

4.4 Target Population

Population refers to the entire group that has common observable characteristics. A target population is where the desired data comes from (Cooper & Schindler, 2006). This study targets all middle level bank managers from the three tiers of commercial banks in the state of Ohio. These managers include human resource, finance, marketing, operations, and ICT managers. This is because managers make most decision on employment. Also, middle-level managers are more available than top level management. They have frequent interactions with the employee.

4.5 Sample Frame

A list of all potential samples that can be sampled is a sample frame (Kothari, 2004). The sample frame is the middle level management in the banking industry for this study.

4.6 Sampling Techniques

The stratified random probability sampling technique was used to collect data from employees of the bank. The researcher distributed 230 questionnaires to the valid respondents. The researcher collected 221 questionnaires after a proper response.

4.6 Sample Size

A sum of a subset of a population chosen for a study is a sample (Kothari, 2004). Using stratified random sampling, this study selected 30% of commercial banks. This comprised managers working in 4 tier one banks, 4 tier two banks, and 5 from tier three. Therefore, the sample size was 230 middle managers from 13 commercial banks headquarters.

4.7 Data Collection Method

The study used both secondary and primary data. The quantitative and qualitative tools aided the collection of primary data (Yin, 2008). The qualitative tools were observations and interview while quantitative collection tool was questionnaire. Changing and adopting different questionnaires of related studies constructed the questionnaire. Questionnaire offer a cheaper way of getting data from a large sample and it allows for anonymity (Yin, 2008). The questionnaire was both open-ended and close-ended.

4.8 Data Analysis

The process of data analysis involves putting the collected data in order so that it is efficiently and easily communicated. In this study, analysis of the data was qualitative and quantitative. The quantitative data analysis was done through the statistical package for social sciences (SPSS version 21) (Bryman, 2003). Descriptive statistics helped in analyzing quantitative data. These included standard deviation, frequency distribution, mean, and percentages. The presentation of the data was done on tables. Descriptive statistics helps organize and review data. The study used content analysis for qualitative data and presented the results as prose. An OLS multiple regression model showed the relationship between the dependent and independent variables.

The OLS multiple regression model was:

Performance = a + b*gender + Controls+ error term

Y = β0 + β1X1 + β2X2 + β3X3 + β4X4+ E

Where; Y= employee performance in the banking industry

β0= constant term

β1, β2, β3 and β4=beta coefficient

X1= Gender diversity;

X2= Age diversity;

X3= Ethnicity diversity;

X4= Education diversity

E= error term

4.9 Summary of Results

The results will add to the pool of studies on the effects of gender diversity on job performance in the banking sector. Also, it will provide banks and future researchers with a reference. The study makes use of research methods for data accuracy.

5.0 Research Questions

Research on effects of gender diversity in the banking sector has focused majorly in the boardrooms and executive position (Campbell & MÃnguez-Vera, 2008). This creates a problem because the resulting sample is small to account for the general population. It also makes it difficult to detect the statistical significant effect of gender diversity and it ignores the broader corporate sector. This results in varied empirical results making it hard to determine the effects of gender diversity on job performance in the banking sector (Joshi, 2017). Only few researches have conducted research on the effects of gender diversity on job performance.

Researches from scholars, research organizations, and institutions of higher learning related to the topic were limited. Therefore, the results would go a long way to enlighten readers and scholar on the effects of gender diversity on job performance in the banking sector in the United States. Also, there exists a gap significant gap in data on gender composition by hierarchy within organizations (Joshi, 2017). This study seeks to fill the gap by adding more material and information in this body of research. The study seeks to explore the effects of gender diversity on the job performance in the banking sector. The dependent variable is job performance in the banking sector. The independent variable is gender diversity. The control variables in this study are age, ethnicity, and education diversity. The study examines this relationship by answering the following research questions:

1. To what extent does ethnicity diversity influence job performance in the banking sector in the United States?

2. To what extent does education diversity influence job performance in the banking sector in the United States?

3. To what extent ages diversity influence job performance in the banking sector in the United States?

4. To what extent does gender diversity effect job performance in the banking sector in the United States?

The measurement of these questions will be through several variables. The independent variable is gender diversity while the dependent variable is employee performance in the banking sector. The control variables will be age, ethnicity, and education diversity. The OLS multiple regression model will show the relationship between the variables.

Y = β0 + β1X1 + β2X2 + β3X3 + β4X4+ E
Where; Y= employee performance in the banking industry
β0= constant term
β1, β2, β3 and β4=beta coefficient
X1= Gender diversity;
X2= Age diversity;
X3= Ethnicity diversity;
X4= Education diversity
E= error term

Joshi’s research like other studies is based on diversity in corporate board rooms. Few studies have focused on gender diversity in the overall banking sector. This study will add to this little body of literature and become a reference point for banks. Also, future researchers will use this study in their research.

6.0 Research Method

Human Resource departments are focusing more on implementing diversity at workplace. This study examines the effects of gender diversity on job performance in the banking sector by examining a sample size of 230 managers in 13 bank headquarters in the state. The control variables in this study are age, ethnicity, and education diversity. The study examines the problem through four research questions. The measures of performance are profitability, efficiency, corporate reputation, and talent recruitment and retention. To answer these research questions, the study will use an appropriate research method and design.

Research design is the plan for carrying out the research. This study uses the descriptive research design. This design aims at describing the population systematically and accurately by answering the how, when, and where questions (Williams, 2007). The design uses a wide variety of qualitative and quantitative methods to investigate the variables. A researcher using this design does not control the variables, but observes and measures them. This study used this research design because not much is known about the problem. Also, the study involved eliciting the opinion of different managers in different banks. The study uses questionnaire as the tool to examine the variables. The researcher adopted descriptive design because it has the advantage of using observations, interview, and questionnaires without changing the environment of the study (Kothari, 2004).

The study incorporated both qualitative and quantitative research methods. The quantitative research used closed-ended question to generate numerical information that was converted into numbers while qualitative approach use open-ended questions (Bryman, 2003). The qualitative tools used are observations and interview while the quantitative tool used was questionnaire. Using questionnaire is cheap when collecting data from a large sample. Also, it allows for anonymity. The use of questionnaires in this study was efficient in finances, energy, and time.

Pre-testing was done before administering the questionnaire to determine if the questions were relevant and understandable. The pre-testing phase helps determine the reliability of research tools (Creswell, 2006). In this study, pretesting involved 23 staff selected through a simple random sampling method. The rule of the thumb in pretesting is to test the survey with at least 12 to 50 people before pilot testing. Twenty-three people in this study represent 10% of the sample which cost, time and energy efficient number.

Validity of a study refers to the extent to which data analysis results embodies the study. The two types are; content and face validity. Content validity in this study was attained by seeking expert’s opinion in this field. The probability of a question being misunderstood is the face validity (Creswell, 2006). Pretesting increases the probability of face validity.

Reliability involves measuring the consistency of the results depending on the research tools used. This study used internal consistency to statistically measure questionnaire reliability. The measure of internal consistency was through Cronbach’s Alpha with 0-1 alpha. As the value increase, reliability increases. The 0.6-0.7 coefficient shows an acceptable reliability while 0.8 and above show good reliability (Greener, 2008).

Data collection was from secondary sources and primary source through questionnaire. The researcher had informed consent from respondent before administering the questionnaires (Bryman, 2003). The drop and pick method was used to administer the questionnaires. This method is effective as it increases response rate and reduces non-response bias.

Data analysis process was both qualitative and quantitative in this study. Analysis of quantitative data was through the statistical package for social sciences (SPSS version 21) (Bryman, 2003). The questionnaires were numbered for easier referencing before data collection and analysis. The variables were chronologically coded to coded variable number. Numbered questionnaires and coded variable number made it simple to identify and make corrections in data entry (Creswell, 2006). Also, quantitative data was analyzed through descriptive statistics. Data presentation was done through tables. The coding of qualitative data was thematically, and the evaluation was done statistically. The analysis was through content analysis and prose was used for data presentation. An OLS multiple regression models showed the relationship between the dependent and independent variables.

Y = β0 + β1X1 + β2X2 + β3X3 + β4X4+ E

Summary

In summary, this paper examines the design and method used in the study. Descriptive research design was used because little is known about the problem and the researcher could observe the sample without changing the environment. Data collection and analysis for the study was by both qualitative and quantitative method.

7.0 References

Ali, M., Kulik, C. T., & Metz, I. (2009, August). The Impact of Gender Diversity on Performance in Services and Manufacturing Organizations. In Academy of management proceedings (Vol. 2009, No. 1, pp. 1-6). Briarcliff Manor, NY 10510: Academy of Management.

Anitha, J. (2014). Determinants of employee engagement and their impact on employee performance. International Journal of Productivity and Performance Management, 63(3), 308-323.

https://doi.org/10.1108/IJPPM-01-2013-0008

Bryman, A. (2003). Integrating quantitative and qualitative research: how is it done?’ Qualitative research, 6(1), 97 – 113.

Campbell, K., & MÃnguez-Vera, A. 2008. Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83: 435-451.

Cooper, D. R., & Schindler, P. S. (2006). Business Research Methods. New Delhi: Tata McGraw Hill.

Creswell, J.W. (2006). Research design. Qualitative, quantitative, and mixed methods approaches. Thousand Oaks CA: Sage.

Farooqui, M. S., & Nagendra, A. (2014). The Impact of person organization fit on job satisfaction and performance of the employees. Procedia economics and Finance, 11, 122-129.

Greener, S.L. (2008). Business Research Methods. Copenhagen: Ventus Publishing ApS.

Hoff, H. E. (2014). A critical discussion of Byram’s model of intercultural communicative competence in the light of bildung theories.Intercultural Education, 25(6), 508-517. https://doi.org/10.1016/S2212-5671(14)00182-8

Inmyxai, S. & Takahashi Y. (2010). Performance Comparison Derived from Human Resources between Male and Female Headed Firms in the Lao MSMEs. International Review of Business Research Papers, 6(2), 12-38.

Jayne, M. E. A. & Dipboye, R. L. (2004). Leveraging Diversity to Improve Business Performance Research Findings and Recommendations for Organizations. Human Resource Management, 43(4), 409–424.

Joshi, A. & E. Jackson, S. (2003). Managing workforce diversity to enhance cooperation in organization. International Handbook of Organizational Teamwork and Cooperative Working.

Joshi, R. (2017). Does Gender Diversity Improve Firm Performance? Evidence from India. Retrieved from:

https://www.undp.org/content/dam/india/docs/poverty/JustJobs_Disha_report

Kothari, C. R. (2004). Research methodology: Methods and techniques. New Delhi: New Age International (P) Limited Publishers.

Oso, W.Y. & Onen, D. (2008). A General Guide to Writing Research Proposal and Report. A hand Book for Beginning Researchers, 2nd ed. Kampala, Uganda: Makerere University

Rizwan, M., Khan, M. N., Nadeem, B., & Abbas, Q. (2016). The impact of workforce diversity on employee performance: Evidence from the banking sector of Pakistan. American Journal of Marketing Research, 2(2), 53-60.

Svyantek, D. J., & Bott, J. 2004. Received wisdom and the relationship between diversity and organizational performance. Organizational Analysis, 12: 295-317.

Williams, C. (2007). Research methods. Journal of Business & Economics Research (JBER), 5(3).

Yin, R. K. (2008). Case study research: design and methods (2nd Ed.). Thousand Oaks: Sage Publications.

Appendix

Annotated Bibliography

1. García-Meca, E., García-Sánchez, I., & Martínez-Ferrero, J. (2015). Board diversity and its effects on bank performance: An international analysis. Journal of Banking & Finance, 53, 202-214. Doi: 10.1016/j.jbankfin.2014.12.002

This article shows the effects of board diversity, gender, and nationality, on the performance of the bank. This study focused on the board because they play a vital role in steering the performance of the bank. This research was built on two hypotheses; that gender diversity does not affect the performance of the bank and that the board nationality diversity does not affect the performance of the bank. To test this, 159 banks from nine different countries were put under observation between 2004 and 2010. Out of this research, 877 observations were recorded. Throughout this period, the characteristics of the board members were noted from the Spencer & Stuart Board Index databases. On the other hand, data and information used to measure performance were derived from the Compustat database.

The results of this study suggested that the type of diversity may have different effects on the bank’s performance. Specifically, it suggested that nationality diversity in the board had negative effects on the bank’s performance, while on the other hand gender diversity proved to have positive effects on the work performed. This research study is very useful to financial institutions especially when it comes to the appointment of board members while ensuring diversity.

2. Thanh Tu, T., Huu Loi, H., & Hoang Yen, T. (2019). Relationship between Gender Diversity on Boards and Firm’s Performance – Case Study about ASEAN Banking Sector. Doi: 10.5430/ijfr.v6n2p150

This is a study that aims to get the relationship between gender diversity in the board of management and directors, and job performance in the banking industry. The study focused on the ASEAN banking system, which consists of countries with growing development but low rates of gender diversity. The study incorporated a literature review from past researches and afterward a research process that they conducted. The methodology involved a sample of 100 banks from 4 countries, in a period of 4 years. Information for these banks in the period of observation was derived from databases. In three of the selected countries, the results showed that women’s presence on the board led to higher profitability. The remaining which showed negative implications of women being on the board of directors revealed these kinds of results due to other factors like economic and cultural background.

The results obtained from the data were scientifically analyzed to give a conclusion. However, further research should be conducted on the same, focusing on different countries to get a conclusive theoretical explanation of this relationship. It is, however, clear that diversity in terms of gender has positive implications on the performance of the bank.

3. Kramaric, T., & Pervan, M. (2016). Does Board Structure Affect the Performance of Croatian Banks? Journal of Financial Studies And Research, 1-11. Doi: 10.5171/2016.158535

This study was aimed at analyzing how and the extent to which board structure influences a bank’s performance. The board structure being analyzed was the gender of the president, female members in the management board, board size and supervisory board female members. The study involved a sample study that focused on the banking sector in Croatia. The research focused on all Croatian banks that were active between 2002 and 2013. To measure the performance of the bank, Return on Equity was employed as a variable. From the results, the gender of the president did not affect the performance of the bank. On the contrary, the analysis from the results showed that gender diversity affected the bank’s performance negatively. Also, the researchers concluded that the call for gender diversity was not derived from the need for job performance, but rather from sociological needs.

4. Nunley, J., Pugh, A., Romero, N., & Seals, R. (2015). Racial Discrimination in the Labor Market for Recent College Graduates: Evidence from a Field Experiment. The B.E. Journal of Economic Analysis & Policy, 15(3), 1093-1125. Doi: 10.1515/bejeap-2014-0082

This article is aimed at presenting experimental evidence on racial discrimination among graduates. The study involved random creation of resumes that were sent to different online advertisements, in various economic sectors, including banking, finance, and management. The resumes were sent to seven different cities in the U.S. Eight names were used for the whole process, in which there were four males and four females. Additionally, among the four males and female names, two were white names and two were black female names. For each advertisement, four resumes were sent, maintaining equality among white and black names. The results observed were analyzed using the regression method. It was observed that out of all the applications, black applicants received fewer invitations for an interview as compared to white applicants. Also, racial discrimination was seen more on the jobs that required more interaction with customers. One strength of this research study is that it ensured uniformity among the participants and the resumes were distributed evenly in the different organizations. This uniformity ensures the accuracy of the study. It creates a need for further study changing other factors like the type of degree.

5. Flory, J., Leibbrandt, A., Rott, C., & Stoddard, O. (2019). Increasing Workplace Diversity: Evidence from a Recruiting Experiment at a Fortune 500 Company. Journal of Human Resources, 0518-9489R1. Doi: 10.3368/jhr.56.1.0518-9489r1

This article contains a research study conducted to show how workplace diversity can be enhanced. It emphasizes the need for diversity in the workplace. The need for this study was triggered by the fact that minority groups like Hispanic and black Americans are underrepresented in leadership roles. This research involved the use of experiments to test hypotheses related to effective ways of attracting minority groups in top professions. The three hypotheses used include: making diversity an organizational value, attracting employees from different fields of training and including factual information to support claims on diversity. The experiment design used in this research involved a firm that intends to recruit fresh graduates into its program in careers in financial services. This process involves the sending of advertisements to various networks where applicants get the links that guide them to the application process. Once the click on the link, applicants are required to fill their names after which they are subjected to random treatments. These treatments involve the use of certain messages that may influence the applicants. Different types of signals were sent to the applicants, and the results were analyzed to determine how effective the signals were on the minority groups based on The results from this study suggested that signals addressing workplace diversity have a great impact on the people applying for jobs, especially in the financial industry. This research study creates a need for further research on other ways that can be used to attract diversity in the workplace. This is because diversity in the workplace is an area of major concern today.

6. Rizwan, M., Khan, M. N., Nadeem, B., & Abbas, Q. (2016). The impact of workforce diversity on employee performance: Evidence from the banking sector of Pakistan. American Journal of Marketing Research, 2(2), 53-60.

Workforce diversity can be achieved in various forms like age diversity, ethnicity, and gender diversity. Diversity has been proved to have positive outcomes for any organization. Therefore, this article focuses on research that was conducted to determine the effect of diversity on the performance of employees, in the banking industry in Pakistan. Among many other questions, this research sought to answer the relationship between workforce diversity and employee performance. The technique used to conduct this research was a random sampling method that involved the distribution of questionnaires to participants from different banks in Lahore. The data collected was analyzed using the regression analysis. The results showed that ethnicity has a positive impact on employee performance. An increase in ethnicity diversity increases employee performance. This research created opportunities for further research to be conducted on the same. This will help in the making of informed decisions especially by human resource management during recruitments. Also, further research should be conducted on other minority groups like the physically challenged to reduce discrimination during recruitment. However, the study conducted is significant because it has focused on a specific effect, employee performance, which results from diversity. Other potential effects of diversity include employee turnover and employee satisfaction.

From the annotated bibliography, it is clear that work force diversity has an impact on the performance of any organization. One of the gaps created in this literature is that gender diversity creates negative impacts while other articles have shown positive impact. Thus, my research topic will focus on gender diversity, as one of the work force diversity, and how it affects performance of an organization.

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