CULTURAL DIVERSITY AND EMPLOYEE PERFORMANCE IN SELECTED MICROFINANCE BANKS IN NAIROBI CITY COUNTY, KENYA

CECILIA MUTETHYA MAITHYA; JEDIDAH MULI

doi:10.61426/rjssh.v7i1.510

CECILIA MUTETHYA MAITHYA Department of Business Administration, Kenyatta University, Kenya
JEDIDAH MULI, PhD Department of Business Administration, Kenyatta University, Kenya

DOI: https://doi.org/10.61426/rjssh.v7i1.510

Keywords: Workforce Diversity, Cultural Diversity, Employee Performance, Microfinance Banks, Cultural Inclusion, Employee Productivity

Abstract

Microfinance serves as a vital tool for improving the economic activities of low-income populations and exterminating poverty. However, the deteriorating performance of microfinance banks in Nairobi County is heavily linked to the poor output of their employees. Therefore, this research explored the influence of cultural diversity on employee performance. The study was underpinned by Blau's Theory of Heterogeneity, Equity theory, and Social Identity Theory. A descriptive research design targeted a population of 208 managers from various departments across fourteen microfinance banks. Utilizing a stratified proportionate random sampling technique, a sample of 137 respondents was generated to provide primary data through semi-structured questionnaires. The data was subsequently analyzed using descriptive statistics and regression analysis. The findings revealed that cultural diversity had a significant positive impact on employee performance with a standardized beta of 0.460 and a significance value of 0.015. The research concluded that cultural diversity plays a major role in increasing employee performance. Consequently, microfinance banks should institutionalize cultural inclusion initiatives to guarantee fair recruitment.

Author Biographies

CECILIA MUTETHYA MAITHYA, Department of Business Administration, Kenyatta University, Kenya

Department of Business Administration, Kenyatta University, Kenya

JEDIDAH MULI, PhD, Department of Business Administration, Kenyatta University, Kenya

Department of Business Administration, Kenyatta University, Kenya

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