The business world has become highly competitive. This is especially in the age of globalization. As such, companies try to gain a a competitive advantage in any way they can. Equality and diversity is one such way in which organizations all over the world are trying to explore in order to outdo their competitors. According to Niroula (2017), globalization has increased the need for multinational corporations to address the issue of diversity and equality. This is in an effort to survive as well as gain a competitive edge over their rivals. Interaction between people across different parts of the globe has rapidly increased as a result of globalization. The result of this interaction is great mobility in the workforce. Sharma (2016) argues that the globalization of markets has brought about inevitable changes in the characteristics of the workforce demographics across the globe. Workers from different cultures and backgrounds often have different needs when at the workplace. As such, for the management to reap any benefits from implementing diversity and equality at the workplace, they need to understand the employees’ needs.

According to Djebarni & Ebei (2011), the term ‘diversity’, derived from Latin diversum, describes the quality or condition of someone or something that is different. Therefore, the whole concept of diversity at the workplace is the recognition and value of differences among ones employees. Niroula (2017) argues that diversity involves recognizing, understanding, accepting, and valuing the differences that exist among people. At the workplace, many factors differentiate employees hence making a workforce ‘diverse’. These factors include gender, race, cultural background, religion, ethnicity etc. Therefore, when formulating policies, the management ought not to take a one-size fits all approach. Rather, they should try to cater for the needs of their diverse workforce. The policies, therefore, are based on individuals rather than groups (Djebarni & Ebei, 2011). On the other hand, equality deals with the employees’ rights as spelt out by the law as well as the government’s rules that are geared towards increasing minorities and women in senior organizational roles (Niroula, 2017).

Several reasons make the case for the need of diversity and equality at the workplace. Armstrong, Flood, Guthrie, Liu, McCurtain & Mkamwa (2010) argue that a shortage of talented workers in the market is an incentive for management to embrace diversity and equality at the workplace. Employee turnover is always a costly affair to the employer. It is even more costly when the employer cannot find competent workers to replace those that have left. As such, employers seek to retain their current employees by creating a conducive work environment. This may be done by ensuring the employees are treated equally and fairly. Apart from that, a lack of talent in the market acts as an incentive for employers not to discriminate against any potential employees. Employers are forced to recruit people of different genders, race, etc.

Another reason for the need for diversity and equality at the workplace is to serve a wide range of customers (Dike, 2013). Customers may feel comfortable being served by people who they relate to. Hence, to be able to successfully serve a wide range of customers, the management should invest in hiring a diverse workforce. In addition, where language barrier is an issue, the management ought to hire people who can speak the local language in order to serve the locals better. The benefits of embracing diversity and equality in the workplace have been well documented. Today, companies that have embraced diversity and equality boost their company image significantly. It also helps boost creativity in the organization since there are people from different background with different life experiences and perspectives of life come together to share ideas. According to Green, Lopez, Wysocki, Kepner, Farsworth & Clark (2019), diversity is important for the success of a business. In addition, lack of diversity and equality in an organization leads to loss of time and money. Therefore, the consequences of failure by the management to embrace diversity and equality ought not to be overlooked. Motivation of employees is very important for the success of an organization. Motivated employees are always eager to work and produce results. Demotivated employees, on the other hand, are a liability to the organization. They have no interest in working towards achieving their targets or even the organization’s objectives. As such, it is important to investigate the link between an organization embracing diversity and culture and its effects on the motivation, job performance and job satisfaction of employees

1.2 Research Objectives

To investigate the effect of diversity and equality on employees’ motivation.
To investigate the effect of diversity and equality on the employees’ job satisfaction.
To investigate the effect of diversity and equality on the employees’ job performance.

1.3 Research Questions

What are the effects of diversity and equality on employees’ motivation?
What are the effects of diversity and equality on employees’ job satisfaction?
What are the effects of diversity and equality on employees’ job performance?

1.4 Significance of the Study

This research is relevant to the world of business. Analyzing diversity and equality and its effects on the motivation and job satisfaction of employees will guide organizations in deciding whether there is need to embrace and spend resources in ensuring that there is diversity and equality in their workplaces. Apart from this, the results of this study will contribute to the already available body of knowledge in the same field.

Chapter Two: Literature Review

2.1 Introduction

This chapter takes an in-depth review of literature that surrounds servant-leadership. The chapter will analyse the different theories that surround the motivation of employees. The theories that will be reviewed in this chapter include the equity theory of motivation as well as Frederick Herzberg’s Two Factor Theory. This will help in outlining the different factors that are suggested for employers when trying to motivate their staff. The chapter will then finish with a summary of the two theories that will be highlighted within the chapter.

2.2 Two Factor Theory

This theory is referred to using many names. Herzberg’s Motivation Theory model, Herzberg’s Motivation-Hygiene Theory, or the Duel Structure Theory. According to Yussof, Kian & Idris (2013), Frederick Herzberg designed the Two Factor Theory in 1959. He collected data from two hundred engineers and accountants concerning their feelings towards their current work environments. From this data, Herzberg was able to define two sets of factors that were important in determining the employees’ attitudes towards work as well as their level of performance at work. He categorized these factors into motivation factors and hygiene factors (Dissatisfiers). Sanjeev & Surya (2016), state that is the theory is relevant today when trying to establish employee motivation. They argue that there are certain motives that motivate human beings to take up jobs.

Motivators are factors that directly concerned with the satisfaction an employee gains from a job. Motivators satisfy employees as they help them to grow. Apart from this, it gives the employees a sense of self-achievement. According to Alshmemri, Shahwan-Akl & Maude (2017), Herzberg concluded that in order to increase the job satisfaction of ones employees, one must strive to improve the motivation factors. In addition, the motivational factors are intrinsic to the jobs done by the employees. They lead to the employees developing positive attitudes towards their jobs since they satisfy their need for self-actualisation. Motivation factors include responsibility, the possibility of growth, advancement, recognition, the work itself, and achievement. It is important to note that the absence of motivating factors does not affect the level of satisfaction amongst the employees. According to Sanjeev & Surya (2016), the absence of motivating factors does not cause dissatisfaction amongst the employees. However, their presence causes satisfaction among the employees.

Advancement involves an employee’s upwards and positive position within the workplace. When it comes to the content of the jobs and assignments performed within the organization, Alshmemri et al, (2017) argues that they have either a positive or a negative effect on the employees. Tasks and assignments can be perceived to be too difficult or too easy or even boring or interesting. Such perceptions about the job tasks given to employees at the workplace determine their level of satisfaction or dissatisfaction hence affects their motivation either positively or negatively. Another motivating factor is the employees possibility for growth. This are opportunities for the employee to experience personal growth or even to get promotions at the organization. Such organizations help the employees acquire new skills through training. Responsibility as a motivating factor stems from the employees getting the chance to make decisions freely. Such responsibility leads to an increase in the employees’ level of motivation. Recognition is also an important motivating factor. Employees are recognized (rare praised or rewarded) when they attain certain objectives or exceed the set expectations in their line of work. This would increase their motivation to work and achieve even more. Finally, there is achievement. According to Alshmemri et al (2017), achievements that would motivate employees (positive achievements) relate to an employee attaining specific success or even solving a difficult problem.

On the other hand, hygiene factors focus on reducing the level of job dissatisfaction amongst employees Alshmemri et al (2017). Generally, they deal with the conditions that surround the workplace and influence the ability of the employee to perform a certain task. It is important to note that the absence of hygiene factors affects the level of satisfaction and motivation among the employees. Yussof et al (2013) argues that the presence of hygiene factors only function to prevent dissatisfaction amongst the employees arising. According to Sanjeev & Surya (2016), the presence of hygiene factors results in an increase in the level of motivation among the employees. However, an absence in these factors causes dissatisfaction and a decrease in the motivation of the workers. It is important to note that motivating factors differ from hygiene factors in this respect. An absence of motivating factors does not cause demotivation or job dissatisfaction. Hygiene factors include salary, the company’s policies and procedures, the working conditions, the context of the work employees perform, the relationship with supervisors, and interpersonal relationships.

Salary pertains to the compensation that employees receive for their work. An increase in the employees’ salary is bound to increase the level of motivation and job satisfaction among the employees. In addition, the employees’ salary should be equivalent to the work done by the employees. If at all the compensation received is less than the work done, employees will become demotivated and dissatisfied with their jobs. It is also important for the salary to be paid out in timely fashion. Interpersonal relationships refer to the interactions between workers and their subordinates, peers, and supervisors. Good interpersonal relationships help the workers to feel at home hence their job satisfaction levels increase. Company policies and procedures also affect employee motivation and job satisfaction. Policies and procedures help to clearly define people’s roles within the organization, outline the chain of command and strengthen communication in the organization. These factors help with the smooth running of the organization and avoid chaos. As such, employees are motivated to work in such environments. Supervision relates to the employees perception of his or her supervisor. Factors such the competence level of the supervisors, their level of fairness or unfairness, or even their willingness to delegate responsibility are scrutinized by employees. When workers are not comfortable with their supervisors, they tend to become demotivated and dissatisfied with their jobs. Finally, there is the issue of working conditions. The physical surroundings at the workplace are important in keeping the employees satisfied with their jobs. The workplace ought to have adequate space, proper ventilation, necessary work tools, and safety tools. In addition, they should be clean. These factors go a long way in ensuring employees are satisfied with their jobs.

2.3 Equity Theory of Motivation

According to Tudor (2011), equity theory has proven to be a useful and powerful indicator of work outcomes. According to Al-Zawahreh & Al-Madi (n.d), the theory explains employee behaviour hence provides the Human Resource (HR) department with factors that may decrease the efficiency and overall performance of employees. The Equity theory was developed by John Adams in 1963 (Ogolo, Obianuju & Chukwujama, 2016). Equity is the ratio between an employee’s input at work and the rewards that they reap (compensation or promotion). As such, workers determine the level of equity of rewards by comparing them to the rewards that their fellow employees receive for similar work done. Apart from this, they also compare their rewards to other rewards that occur to them for different work in order to determine the level of equity. According to Al-Zawahreh & Al-Madi (n.d), once an employee compares his or her input to their outcomes and perceives inequality, they tend to work towards correcting that inequity. Tudor (2011) states that demotivation amongst employees occurs when they perceive that the work or tasks that they perform (inputs) are greater than the output they receive. . According to Al-Zawahreh & Al-Madi (n.d), employees may lower their level of productivity or even reduce the quality of their output in order to match the compensation that they receive. In some cases, absenteeism is seen among disgruntled employees with some going as far as to resign from their jobs As such, the HR department ought to take special care when dealing with their employees. Al-Zawahreh & Al-Madi (n.d) argue that this is important especially when dealing with tasks such as promotions, recognizing employee, bonuses, disciplinary actions, compensation, training and development, etc. This is because employees perceive fairness of outcomes when it comes to such factors. Ensuring that the employees’ inputs and outcomes are balanced ensures that they remain motivated and satisfied with their job.

2.4 Conclusion

This chapter takes an in-depth look at the literature that surrounds employee motivation and job satisfaction. The two theories that accurately bring these two phenomena into light are the theory of equity and the Two Factor Theory. The theory of equity argues that the level of motivation and job satisfaction is derived from the employees’ perception of equity at the workplace. For an employee to be satisfied with their job, the input that they give must correspond with the output they receive in terms of compensation, promotions, etc. On the other hand, the Two Factor theory categorizes the factors that motivate employees into two: Hygiene factors and motivating factors. Hygiene factors are extrinsic and demotivate the employee whenever they are not present. Motivating factors, on the other hand, are intrinsic and do not cause dissatisfaction when absent.

Chapter Three: Research Methodology

3.1 Research Approach

This chapter outlines the methodology that the research will utilize to tackle the research questions. The chapter describes the research methods that will be used, the research tools that will be used by the researcher, and the population as well as the sample that will form the study. In addition, it defines the strategy that will be used to get the sample for the study. Finally, the chapter will highlight the ethical considerations that the researcher will maintain while carrying out the research.

3.2 Research Design

According to (Sileyew, 2019), the research design provides the framework for a study. It outlines the structure of the research and holds the elements of the research together. This research project will adopt a descriptive research design since it will help describe the current status of the phenomenon being studied. According to Akhtar (2016), descriptive research design is commonly used in social sciences (socio-economic survey, job and activity analysis, etc.) It also describes a phenomenon and its characteristics (Nassaji, 2015).

3.3 Research Methodology

The study will involve the collection of primary data. The study will draw its sample from seven ABC Groceries stores around the country. All the employees of these organizations will be involved in getting data. It is important to note that ABC Groceries is a medium-sized company. Therefore, the branches have 50 or less employees. As such, the sample size will not be large hence; it will be economical to use all employees from the selected company branches. The ABC Groceries branches that will be involved in the research will be selected randomly. This will ensure that all the company branches have equal chances of participating in the study. The data collection method that will be used in this study is a self-administered questionnaire. After data has been collected, it will be analyzed through editing, coding, and presentation in tables. This will help summarize the data.

3.4 Research Tools

The research will utilize a self-administered questionnaire. All the employees of the selected branches will be given a questionnaire to fill in order to collect the necessary data. The researcher will visit the selected branches and hand over the questionnaires to the employees to fill. The questionnaire will be collected afterward as agreed by the researcher and the organizations’ branch managers.

3.5 Population & Sampling

A population is a group of objects, items, or people from which samples are taken for measurement. On the other hand, a sample is selected from the population in order for a study to be carried since using a population would be too expensive (Taherdoost, 2016).

3.5.1 Identifying Population

The population of this study will be all ABC groceries in the United States. This is because the organization is well known when it comes to ensuring that they have a diverse workforce.

3.5.2 Sampling Strategy

The sample for this study will be the seven ABC groceries branch. All employees at the selected branches will take part in the study. This is because they are not many in number hence; the research will be economical. However, this is not to imply that the sample size is small. ABC groceries is a medium-sized company hence the employees are 50 or less. This number is small enough to be considered economical for the researcher while still being large enough to get sufficient data. It is important to note that the larger the sample size the more credible the results.

3.6 Ethical Implications

The researcher will obtain permission from ABC groceries’ head office to carry out the study. The researcher will also obtain informed consent from the research participants. According to Fleming & Zegwaard (2018), informed consent ensures the participants knowingly, intelligently, and voluntarily accepts to take part in the study. Apart from that, this will ensure that the employees’ confidentiality is maintained. All questionnaires will be filled anonymously to protect the identity of the employees.

Chapter Four: Findings

250 employees out of a possible 350 employees from the selected ABC groceries branch agreed to take part in the study. ABC groceries has a diverse workforce. This represented 71% percent of the employees. Out of the 250 employees, there were 130 male employees (52%) and 120 female employees (48%). People from different races were also represented. Out of the employees that participated in the study, 150 employees (60%) were white. 60 (24%) of the employees were black while Native Americans and Hispanics each accounted for 20 (8%) employees each. In total, there were only four (1.6%) employees who had a form of physical disability. All the employees sampled acknowledged to have read the company’s policies. They all also acknowledged of the company’s efforts to embrace diversity and equality in their policies.

4.1 Diversity and Equality on Employee Motivation.

90% of the respondents admitted to being motivated by the implementation and dedication of the company to diversify the workforce. The respondents said that this was a sign that the organization was only interested in ensuring that performance is rewarded and that favouritism and bias of any kind was not accepted in the organization. 94% of the respondents said that they always looked forward to going back to work on a Monday. They did not experience Monday blues. 73% of the respondents were willing to work extra shifts even on short notice. Finally, 81% of the respondents admitted that the power structure within the business motivated them to work hard every day. According to them, it was a way of paying back the confidence and support that their management constantly gives.

4.2 Diversity and Equality on Employee Job Satisfaction

Only 12% of the respondents were dissatisfied with their jobs. It interesting to note that the reasons that they gave for this dissatisfaction were not related to the issue of diversity and equality. Issues such as incompetent and harsh supervisors, long hours, etc. constantly appeared as reasons causing job satisfaction. Only 1% of the respondents said that ABC groceries was the first company they had worked for. The rest had worked in other companies. Out of this, none of the respondents had ever worked in a company that so strongly advocated for and implemented diversity. However, the respondents had come across companies that also advocated for diversity and equality. Either through seeing on the television or even working for them. Of the 99% who had worked for other companies, 4% said that they would want to go back to the companies they previously worked for. The 96% stated that they would not want to work for their previous companies because of the nature of their previous supervisors.

4.3 Equality and Diversity on Job Performance

All respondents stated that they had seen their performance at their various jobs increase significantly. Respondents felt ABC groceries was a very welcoming company to all its employees. It is important to note that ABC groceries tends to lean more on Cristian values. However, it is important to note that they employ people of all races, genders, sexual orientations, colour, etc. The respondents found this aspect of the company very welcoming. 97% of the respondents stated that the manager never showed any favoritism towards anyone. All the respondents also stated that they felt that the company’s policies and procedures generally made everyone equal. This is because they did not disadvantage any one group of people.

Chapter Five: Discussion

From the findings, it is clear that the decision to embrace diversity and equality in the organization has its effects on the employees. Generally, the employees felt motivated to work for ABC groceries because of the equality practised by the management across the board. Most would work extra hours on short notice. In addition, the employees never had Monday blues as they looked forward to going to work. This can be attributed to many things and among them was the environment that the company has created for its employees. The policies and procedures that are enforced at ABC groceries ensure everyone is treated fairly. In addition, most of the employees do not see any kind of favoritism in the manager’s decisions or actions. As such, the employees consider the company suitable for different kinds of people regardless of gender, color, race, sexual orientation, etc. As such, the employees are very satisfied with their current employment citing the manager’s style of leadership as part of the reasons for this. Few employees would consider leaving their current job at ABC groceries to go back to their previous companies.

Chapter Six

Conclusion.

In summary, diversity and equality have an impact on employees. diversity and equality increases employees’ job satisfaction, makes them more motivated to work, and creates an environment that ensures equality and diversity. This is shown by the fact they are even willing to work extra hours on short notice. Diversity and equality has also led to most of the employees preferring to work for ABC groceries as opposed to companies that have not strongly embraced these principles. Apart from the fact that the company’s policies are fair and apply to all the same way. The implications of diversity and equality on employees are majorly positive.

Recommendations and Implications for Further Research

Having effectively shown that diversity and equality have positive effects on the employees, it would be interesting to investigate the public’s perception of companies that strongly embrace diversity and equality as opposed to those that do not. Which of the two companies would customers rather engage with? It would also be interesting to investigate whether the public cares for such causes or are they simply interested in dealing with organizations that can best serve their needs?

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The Effect of Servant Leadership on Employees in an Organization: The Case of ABC Groceries

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Chapter One: Introduction

1.1 Research Aim and Rationale