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The copyright of this thesis vests in the author. No quotation from it or information derived from it is to be published without full acknowledgementTown of the source. The thesis is to be used for private study or non- commercial research purposes only. Cape Published by the University ofof Cape Town (UCT) in terms of the non-exclusive license granted to UCT by the author. University An Investigation into the Relationship between Diversity, Inclusion and Performance An Empirical Study in a Corporate South African Organisation Town Thesis Presented for the Degree of DOCTOR OF PHILOSOPHYCape OF BUSINESS of UNIVERSITY OF CAPE TOWN Graduate School of Business University by Preeya Daya November, 2010 Town Cape of University ACKNOWLEDGEMENTS Isaac Newton once said, ‘We stand on the shoulders of giants’. This degree is realised thanks to the contribution of numerous individuals, whose support, insight or knowledge were invaluable to this dissertation. The first thanks goes to Prof. Kurt April who agreed to supervise me in this journey. His passion and motivation, coupled with sound knowledge and experience, meant that I was on the receiving end of valuable guidance, for which I am grateful. I owe a debt of gratitude to Victor Katoma, a Ph.D colleague and statistics consultant, for being a supportive, encouraging and guiding force during the course of this research. I extend this gratitude to Prof. Rajen Govender for his guidance and support with the statistical modelling component of this research. The examiners of this dissertation deserveTown recognition for their valuable insights and contributions which have served to make this dissertation more coherent and accessible to a reader. Further thanks go to the editors of this document, Mega, Martin and Sulona and to Dr. Richard Chivaka and Prof.Cape Walter Baets for their encouragement and support during the examination of this dissertation. of I am grateful to leaders at the research organisation who were supportive of this research. A special thanks goes to Prof. Steve Bluen whose guidance was pivotal to the definition of the research questions. Additional thanks goes to Alan Henning, Darryl Wright, Jo Hobson, Annalize Van Der Waal and Gavin Hudson for allowing me the flexibility to carry out this research and challengeUniversity the status quo of the environment. My work colleagues also deserve special thanks. They were supportive and accommodating during the past few years and I am grateful for their patience and encouragement. Directors Simon Kettleborough and Tony Burnett from ‘Performance Through Inclusion’, kindly agreed to roll out the InclusionIndex™ survey without any cost and administered the survey at the research organisation. This is a significant undertaking for which I am incredibly grateful. My parents Navin and Harshiela Daya, and my sisters Naina, Deepa and Trisha deserve special recognition. They are nothing short of remarkable in their ability to love, encourage, challenge, motivate and support me in every aspect of my life. A final thanks goes to all my close friends, near and far, and my brothers- in- law, who have supported and encouraged me in so many different ways throughout this PhD journey. Whatever your role, thank you so very much for your contribution to this research journey! Town Cape of University iii AN INVESTIGATION INTO THE RELATIONSHIP BETWEEN DIVERSITY, INCLUSION AND PERFORMANCE AN EMPIRICAL STUDY IN A CORPORATE SOUTH AFRICAN ORGANISATION A combination of quantitative and qualitative methodologies was used to answer the following three questions: 1) What is the effect of demographic variables on diversity and inclusion? 2) Is there a relationship between diversity, inclusion andTown performance in corporate workplaces? 3) What are the components that drive diversity and inclusion in a corporate workplace in South Africa? Cape The research was conducted in a divisionof of a multinational corporation in South Africa. The quantitative analysis was run using the InclusionIndex™ survey to get a measurement of diversity and inclusion in the organisation. The qualitative methodology included semi- structured interviews and focus groups. Questions one and two were tested empirically using a combination of analysis of variance and structured equation modelling. Question three was answered using theUniversity consolidated findings of the quantitative and qualitative components of the InclusionIndex™ survey, the semi-structured interviews, focus groups, and insights from related literature. The research found that diversity and inclusion need to be driven at organisational, interpersonal and individual levels to achieve the benefits of a diverse and inclusive workforce. Components that are critical in order for the strategy to be successful at an organisation level are: ‘senior management’, ‘organisational belonging’, ‘dialogue’, ‘recruitment’, ‘promotion, progression and development’, and the ‘organisation climate’ created through HR processes and policies. At an interpersonal level, they are: ‘acceptance and respect’, ‘immediate manager engaging employees with dignity’, ‘trust and recognition’, iv ‘engagement in terms of empowered decision-making and access to information’, and finally, the ‘employee’s engagement with the company’s vision and values’. The individual component involves an individual’s ‘personality’, ‘locus of control’, ‘confidence’, ‘power’ and ‘self-esteem’. The structured equation models suggested that perception of diversity and inclusion is affected by an individual’s race, position in the company, the location the individual is based at, and department the individual works in at a confidence level of 95%. Analysis showed that while age and tenure did not produce statistically significant findings on the structured equation model (SEM), these groups showed a stronger relationship with inclusion than gender, sexual orientation, disability, and religion; which showed a non-significant relationship with inclusion when considering all the variables simultaneously. Further, individual performance was seen to be affected by individual perception of inclusion at a confidence level of 95%. Town Cape of University v TABLE OF CONTENTS Chapter 1: Introduction ................................................................................................................................... 1 1.1 A brief history of South Africa...................................................................................................... 2 1.2 Philosophical basis of this study.................................................................................................... 6 1.3 Research purpose and questions .................................................................................................... 7 1.4 Delimitation ................................................................................................................................10 1.5 Assumptions................................................................................................................................11 1.6 Definitions ..................................................................................................................................11 1.7 The significance of the study .......................................................................................................13 1.8 Summary of this chapter ..............................................................................................................14 1.9 A brief overview of the chapters to follow....................................................................................14 Chapter 2: Literature review...........................................................................................................................15 2.1 Barriers to change ........................................................................................................................19 2.2 Investigating the benefits and costs of a diverseTown and inclusive environment ...................................................................................................................................................25 2.2.1 Commercial case.................................................................................................................25 2.2.2 Moral Case .........................................................................................................................27 2.2.3 Legal case ................................................................Cape................................ ...........................28 2.3 Understanding the differences between diversity, diversity management and inclusion ................................................................of ...................................................................................29 2.3.1 Definitions of diversity, diversity management and inclusion ...............................................29 2.3.2 Approaches to managing diversity .......................................................................................31 2.3.3 Understanding the origins of inclusion/exclusion .................................................................33 2.4 Section A: Towards a model of diversity and inclusion ................................................................35 2.4.1 Different approaches to managing diversity .........................................................................35 2.4.1.1 UniversityThomas, R. R. (2002, 2006) ...........................................................................................35
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