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Gender
diversity and
organisational
performance
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Gender diversity and organizational performance
The term gender diversity refers to the fair representation of individuals of different
genders and is mainly used in the workplace to describe gender identities. in the business
communities, gender diversity is significant to ensure equal representation of women in
the workplace that can have a positive influence on business efficiency. In recent years,
gender diversity has been discussed in the context of organizations, communities and
society. In business communities, managers and employees are being urged to recognize
the significance and effectiveness of diversity. The aim of this research is to analyze the
relations between gender diversity and organizational performance by analyzing its
negative implications.
Gender diversity is a kind of process used for providing equal representation of males and
females in the workplace and is capable to maintain the workforce and effectiveness of the
business. The major relationship between gender diversity and organizational performance
is that gender diversity is able to create awareness and understanding of the significance of
gender identity by which companies can manage performance issues and increase
efficiency. Gutirrez, et al., (2020) reported that the major common gender stereotypes are
linked to the communal and agentic association and women are mainly linked with the
communal characteristics while men are linked with the agentic characteristics.
The involvement of gender diversity in the workplace can helps the managers to maintain
both communal and agentic associations and positively influence organizational
performance. In terms of financial performance, gender diversity plays a major
contribution that enables the companies to diversify the workforce and working with both
men and women can lead to developing creative ideas and decisions that can be used for
improving financial performance. Moreover, a gender diversity-based workplace is capable
of profitable investments at the individual portfolio, maintain the organizational problems
and increase overall fund returns. Marinova, Plantenga, and Remery, (2016) reported that
organizational productivity is based on the employees performance and organizational
culture and gender diversity is capable to maintain the performance of the employees by
providing an equal opportunity that leads to increase overall productivity.
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Having women in the organizational workplace can help to improve the team processes
and enables the managers to achieve organizational goals effectively that positively
influence performance and productivity. In terms of corporate social responsibility, gender
diversity is capable to helps companies for building brand recognition and create a positive
brand image by which it is easy to increase the reputation and develop effective business
relations (Martinez, et al., 2020). By including gender diversity in the business
communities and corporate social responsibility can help to create, manage and engage
relationships.
Gender diversity in the workplace requires proper communication and an organizational
environment where it is difficult for the management to interact with the diverse
employees that can affect teamwork and performance negatively. Moreno, et al., (2018)
agreed and stated that gender diversity and differences within an organizational group can
increase conflicts and communication-related concerns where it is difficult for the
managers to interact with the diverse people that produce challenges and issues.
For example, in project development, business communities develop a team where the
presence of diverse members can increase conflicts between planning and implementation
phases due to which performance and efficiency can be affected. When management begins
to notice more gender diversity in the organizational workplace, individuals could become
more cultural resistant that can increase barriers, stress and create the organizational
environment more negative. It is found that gender diversity can increase operational and
financial costs of the companies because diverse people require proper training,
development assessment and programs that can increase the cost of the companies and
reduce performance easily.
In terms of complexity, it is complex for diverse people to perform business operations in a
group due to which the companies can face issues in the achievement of goals or objectives
and negatively influence organizational performance. Perryman, et al., (2016) examined
that worker who comes from dissimilar countries and cultures that also contains different
behaviour, values and etiquette standards that can produce challenges in the workplace
and create misunderstanding between team members and management. Therefore, it is
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important for companies to manage the challenges and problems associated with gender
diversity so that overall organizational performance and productivity can be managed.
Organizational leadership plays a major contribution to workplace diversity that helps the
companies to understand the negative implications of gender diversity and provide proper
platforms to the team members for managing challenges and problems. Effective leaders
are helpful for the companies to understand and review the problems posed by gender
diversity and enable the employees to manage communication and misunderstanding
problems. More than 70% of the companies have implemented transactional and
transformational leadership due to their potential to manage different diversity and
barriers among employees that leads to increase performance.
Reguera, et al., (2017) examined that the involvement of leaders in workplace diversity can
change the way of businesses and helps team members to manage and resolve issues
affecting performance. In terms of decision making, organizational leaders are capable to
develop effective decisions based on gender diversity and enable the management to focus
on organizational goals and increase workplace diversity. It is recommended that
companies should hire experienced and skilled leaders that can help to understand the
background of diverse employees, review their behaviour towards business operations and
manage performance levels. Leaders can avoid making an assumption about employees
from diverse cultures and individually interact with the employees by which effective team
or group can be created and goals can be achieved.
From the above discussion, it may be concluded that gender diversity is effective and
reliable for improving organizational performance but it is significant to focus on
challenges and problems posed by diverse employees. It is found that a gender diversity-
based workplace is capable of profitable investments at the individual portfolio, maintain
the organizational problems and increase overall fund returns. By including gender
diversity in the business communities and corporate social responsibility can help to
create, manage and engage relationships. gender diversity and differences within an
organizational group can increase conflicts and communication-related concerns where it
is difficult for the managers to interact with the diverse people that produce challenges and
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issues. It is suggested that companies should include effective leadership styles so that
challenges related to gender diversity can be minimized.
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References
Gutirrez-Fernndez, M. and Fernndez-Torres, Y., (2020) Does gender diversity influence
business efficiency? An analysis from the social perspective of CSR. Sustainability, 12(9),
p.3865.
Marinova, J., Plantenga, J. and Remery, C., (2016) Gender diversity and firm performance:
Evidence from Dutch and Danish boardrooms. The International Journal of Human Resource
Management, 27(15), pp.1777-1790.
Martinez-Jimenez, R., Hernndez-Ortiz, M.J. and Fernndez, A.I.C., (2020) Gender diversity
influence on board effectiveness and business performance. Corporate Governance: The
international journal of business in society.
Moreno-Gmez, J., Lafuente, E. and Vaillant, Y., (2018) Gender diversity in the board,
womens leadership and business performance. Gender in Management: An International
Journal.
Perryman, A.A., Fernando, G.D. and Tripathy, A., (2016) Do gender differences persist? An
examination of gender diversity on firm performance, risk, and executive
compensation. Journal of Business Research, 69(2), pp.579-586.
Reguera-Alvarado, N., De Fuentes, P. and Laffarga, J., (2017) Does board gender diversity
influence financial performance? Evidence from Spain. Journal of Business Ethics, 141(2),
pp.337-350.