Essay Example on Investigating the Relation between Gender Diversity and Performance

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While the average of female participation rate to workforce is 63 in OECD The Organization for Economic Co operation and Development countries Turkey has had the lowest level of female participation rate among them that is 34 Comparably the economic growth of higher female participation rate countries is higher than less than overage female participation rate countries The economic growth is a rise of capacity of one economy to manufacture services and products Those products and services are predominantly manufactured by private companies Companies diversified their workforce are outperforming than companies that diversified less Robertson Park 2007 Because of these significant differences demographic diversity become very important subject The relationship between gender diversity and organization s performance become hot field for researchers In recent years taking gender diversity into account has been called by academics similar as a core value which depicts the right direction to carry out business indicating that gender diversity guides increased organization performance Even there are few research about the gender diversity and performance there are not still consensus between researchers Researchers investigating the relation between gender diversity and performance have exhibited conflicting consequences One perspective of diversity says that diverse gender teams bring value and has positive influence on performance because of the rich cognitive sources Cox Blake 1991 Easley 2001 Frink et al 2003 Hambrick Cho Chen 1996 Horwitz 2005 Mannix Neale 2005 Another perspective of diversity says that increase up to optimal level of female employees has positive effect on performance Frink Robinson Reithel Arthur Ammeter Ferris Kaplan Morrisette 2003 In this paper we are going to elucidate the relation between gender diversity and business performance by proving the effect of the diversity on company s performance

Thusly this research adds importantly to the current literature by supplying profound look at connection between gender diversity and performance The following conceptual framework will elucidate the theory and continues with methodology that ends with conclusion and discussion Conceptual Framework Demographic dynamics of an organization is come from the idea which working group demographics are important in grouping processes Pfeffer 1983 Group processes are associated with group performance that in order will be associated to company performance Tajfel 1981 Turner 1982 1987 Various theoretical frameworks advocate certain relations among gender diversity and company performance Barney 1991 Pfeffer Salancik 1978 Kahn 1990 Profound theories that are resource based view resource dependency theory and psychological presence theory gives important causes to comprehend how and why gender diversity influence business performance Pfeffer and Salancik 1978 states resource dependency view looks to demonstrate how companies occupy strategies to execute complicated business ecosystem and environments by approaching limited external resources Resource dependency theory highlights interdependence among companies and organization in the external environment which regulate the prominent resources

According to the theory a company is open system depends on external firms to survive and it causes to increase the uncertainty that arises challenges which means cost to any company By choosing specific types of directors with very important skills links to external resources dependency one company can decrease dependency Companies which manage the link between external companies that supply resources better that other those companies will often win the competition Hillman Withers and Collins 2009 classified the benefits that come from board linkages that were identified by Pfeffer and Salancik 1978 as legitimacy advice and counsel pathway for communicating as human capital including knowledge expertise skills and reputation and relational capital That suggests that variety is a mechanism for approaching precariously valuable and limited capital and resources for the company's success Pfeffer Salancik 1978 As the uncertainty of the world situation such as the recent economic downturn dissatisfaction with the national and local governance regime market failure is increasing companies need all resources to maintain competitiveness and survivability It is essential to voluntarily acquire Adopting demographically various employees is one of the strategies to knock the door of prominent resources for company success and survival Gallego Alvarez Garcia Sanchez Rodriguez Dominguez 2009

To illustrate research conducted in 2007 by Hillman Cannella and Shropshire discovered that firm which laboriously depends on women employees or ones with connections to another firms that have female as board of director members are possible to put female managers on their boards to reflect the surroundings in that they function Diverse workers are hopeful to develop external networks and communication which cause to find new path to resources like larger customer more information multiple credit resources and diversified data sources Furthermore gender diversity in workers base allows organizations to draw and hold ability from a broad pool of human capital Gallego Alvarez et al 2009 Jimeno Redondo 2008 Thus this view says that establishing gender diversity workforce can rise the company's performance as well as strategic advantage Also according to resource based theory done by Barney 1991 companies administer their internal resources which also cover human capital to gain the sustainable competitive advantage Barney 1991 says if one company's resources show valuable inimitable rare non substitutable attributes the company can gain sustainable competitive advantage Availability of human resources to administration is able to be origin of sustainable competitive advantages Beneficial



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