The influence of diversity management initiatives on business and social outcomes in South African businesses

Diversity management is of strategic importance in all organisations throughout the world. Its importance is derived from the belief that workplaces by nature consist of diverse employees, who in one way or another are different in terms of race, gender, religion, or any other difference that may have an impact on the business and its employees. The differences among people need to be managed. This study investigated the influence of diversity management initiatives on business and social outcomes in South African businesses. Literature reviews on diversity management and multicultural education in various parts of the world have revealed an impact on the influence of diversity management initiatives on business and social outcomes. However, existing South African literature on diversity management does not conclusively expose the effects of diversity management on business and social outcomes, hence the need for this study. The study was based on a conceptual framework, which included variables on diversity management initiatives, diversity management models, institutional development theory and business and social outcomes. Hypotheses for the study were also developed and tested. In testing the hypotheses, the empirical data collected was subjected to a series of statistical tests, using STATISTICA version 13. MANOVA tests were conducted to determine the existence of differences among variables and the extent to which the variables differed was measured by means of ANOVA tests. Tukey post hoc tests (Tukey HSD) were used to determine practical significance among variables. The study was also subjected to Pearson product-moment correlation coefficient analysis tests to ascertain the existence of relationships between all diversity management initiatives and business and social outcome factors. The analysis was concluded by conducting an exploratory factor analysis. An exploratory factor analysis was conducted to confirm or reduce the number of factors and the number of factors was subsequently reduced. A Pearson product-moment correlation coefficient test was also done for the extracted factors, after which a regressions analysis test was conducted to confirm the existence of relationships between the extracted diversity management initiatives factors and business and social outcomes factors. This formed the basis for the development of a proposed diversity management model. The model of the implementation of diversity management initiatives is an important contribution to the study because it shows the different aspects that guide the process of implementation. The model is based on the implementation of a formal diversity management change strategy and programme of action; employment equity plan and strategy; and the recruitment and empowerment of women and people living with disabilities. The study was not without limitations. Challenges with regard to access to respondents were experienced and this was one of the delays in data collection. Another challenge experienced was that the study did not include qualitative research approaches, which could have been used for in-depth responses. The study provides an important milestone for the use of diversity management initiatives in South African companies