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PERSPEKTIF
Available online http://ojs.uma.ac.id/index.php/perspektif
Workplace Diversity and the Performance of Coca-Cola Company in Benin City, Edo State, Nigeria
Abraham EjogbaOrhero 1) & Ugo ChuksOkolie 2)*
1) Department of Political Science, Faculty of Social Sciences, Delta State University, Abraka, Delta State, Nigeria
2) Department of Public Administration, Faculty of Management Sciences, Delta State University, Abraka, Nigeria
Accepted: 29 March 2023; Reviewed: 18 June 2023; Accepted: 27 June 2023
Abstract
In this study, the performance of the Coca-Cola Company in Benin City, Edo State, Nigeria was evaluated in relation to workplace diversity. A survey research design was used, along with a method of systematic random sampling. For this study, a questionnaire was used as the research tool for data collection, and 148 respondents were deemed useful. The study's theoretical framework was based on social identity theory. Statistical Package for Social Sciences (SPSS) software version 23.0 was used to perform a linear regression analysis and a Spearman's rank correlation coefficient on the collected data. The study's findings demonstrated that workplace diversity significantly improved the performance of Coca-Cola Company, Benin City, Nigeria. According to expectations, the study also showed a positive and significant correlation between workplace diversity and the performance of the Coca-Cola Company, Benin City, Nigeria. The study comes to the conclusion that it is critical for employers and policymakers to comprehend shifting workforce demographics and the effects of growing diversity on employee behavior. Tensions over cultural issues are likely to increase as the workforce becomes more diverse. As a result, the study suggests, among other things, that organizational leaders/managers enforce cultural mentoring, which is one of the tried-and-true ways to help managers and employees, both new and old, adjust to their roles and the workplace.
Keywords: Workplace Diversity; Performance; Diversity Management; Coca-Coca Company; Social Identity Theory.
How to Cite: Orhero, A.E. & Okolie, U.C. (2023). Workplace Diversity and the Performance of Coca-Cola Company in Benin City, Edo State, Nigeria. PERSPEKTIF, 12 (3): 844-859
*Corresponding author:
E-mail: [email protected] ISSN 2549-1660 (Print)
ISSN 2550-1305 (Online)
INTRODUCTION
Given how uncommon homogeneity is in all spheres of life including the physical, economic, and social the study of workplace diversity is crucial today. Different species of plants and animals exist depending on their environments. We can see the diversity of our existence in the different languages we speak and the various ways we dress. Therefore, diversity is a typical occurrence in the family, workplace, society, and globally (Chuks &
Chuks, 2022). Although there have been many terms used to describe organizations with their diverse cultures, ethnic, racial, and gender groups, managing diversity in a multi- ethnic workforce to achieve a corporate mission is not a new phenomenon. It has become necessary for organizations to seek out a more dynamic cultural model if they are to continue to survive in this dynamic environment and achieve their corporate goals as a result of globalization and constant changes in the workplace that have forced them to develop businesses and cooperation across their national boundaries. The multicultural workforce, wherein their employees come from a variety of ethnic, racial, religious, and gender backgrounds, is now valued and appreciated by organizations.
In other words, the globalizing economy and the rise in the number of multinational corporations make diversity management a necessity for companies that want to survive and continue to thrive during this period of economic, social, and cultural changes. The focus is now on managing the growing trend of multi-ethnic diverse workforces, which is a key factor in achieving overall corporate success (Ogbo et al., 2014). Kakabadse, Figueira, Nicolopoulou, Hong, Kakabadse, and Zbilgin (2015) in (Lin, 2019), note that in organizational performance index, diversity should capture practices that involve understanding and appreciating the interdependence of humanity, culture, and the natural environment; fostering mutual respect for qualities and experiences that are different from our own; realizing that diversity includes not only ways of being but also ways of knowing; and realizing that personal, cultural, and societal diversity includes both ways of being and ways of knowing.
According to (Kreitner & Kinicki, 2004), managing workforce diversity is crucial for
balancing employee differences and similarities in order for the organization and the people who make up it to achieve their goals and objectives. In the view of (Schlüter et al., 2017), managing workforce diversity entails reducing potential obstacles like prejudice and bias that can impair the effectiveness of a diverse workforce.
Workforce diversity management in practice entails both required and optional management actions. Employers are required to take a number of legally required steps to reduce employment discrimination. For instance, the Federal Character Law in Nigeria mandates that parastatals and federal government agencies must hire people who exhibit the federal character. However, many CEOs hire to favor their own people over other Nigerians from other locations. This is unethical and has a negative impact on how well most Nigerian organizations perform.
Diversity in the workplace has been the subject of countless studies. This study was motivated by the gap left by a significant number of studies on workplace diversity and the most effective ways that workforce diversity can improve organizational performance. Diversity Management and workforce diversity have become increasingly important in recent years, and as a result, businesses are being forced to adopt these ideas in order to boost productivity and profits. Due to management's inability to effectively manage the concept of diversity management and its ethics, this forced integration has led to diversity and uncertainty in the workforce. As a result, managers are finding it challenging to effectively practice diversity management, which has consequently become an albatross around their necks. Additionally, some employees' discriminatory attitudes, individual identities, and lack of cooperation among coworkers have gone too far in the same diverse organization, which lowers morale and results in poor performance metrics. This is due to the increased pursuit of departmental goals at the expense of overarching organizational goals and objectives. Because the fundamental principles of diversity are not effectively tapped, corporate profitability declines. In a similar vein, management has not done a very good job of addressing the nature of education, training, and exposure as a matter of policy.
Many organizations in Nigeria are found wanting when it comes to applying this corporate business process in order to achieve profitability.
In order to effectively and efficiently deal with issues related to workplace diversity, managers find it challenging to understand the factors that contribute to effective diversity management or the precise leadership tasks that can be achieved. The impact of diversity management on organizational performance in a multiethnic workforce in a transitional economy like Nigeria has, however, received little research. This survey attempts to fill a gap in the literature about diversity management and achieving organizational performance within a multiethnic workforce in the Nigerian business context. This study therefore explores various approaches to addressing workplace diversity as well as how it affects the performance of the Coca-Cola Company, Benin City, Nigeria, based on this premise.
REVIEW OF RELATED LITERATURE Diversity management
Diversity Management can be defined as the process of planning, directing, organizing, and applying all comprehensive managerial attributes in order to create an organizational environment where all diverse employees, regardless of their similarities and differences, can actively and effectively contribute to the competitive advantage of a company or an organization.
Workforce diversity is the broad range of individual differences and similarities that exist among those employed by an organization, according to (Schlüter et al., 2017). This definition was chosen because it emphasizes three important ideas related to the management of workforce diversity, including the fact that workforce diversity has many different dimensions or components.
This suggests that everyone in the company should be concerned about workforce diversity. Demographic factors like age, race, or gender are not a problem. In other words, it has to do with a variety of personal traits that set each employee in the company apart from the others and make them all unique. In other words, employee diversity is not the same as workplace diversity. Instead, it includes both contrasts and parallels. Therefore, managing
workforce diversity necessitates addressing both issues at once (Thomas Jr, 2005).
Workforce diversity, then, refers to the workers' overall mix of differences and similarities. Managers must take into account both the group's differences and similarities in order to deal with workforce diversity. Both of them need to be thoroughly investigated, decided upon, and established.
Workforce diversity in Nigerian business organizations refers to the full range of differences and similarities in workers' behavior, attitudes toward their jobs, cultures, religions, and management philosophies. This includes both managers and non-managers. To determine how this difference affects organizational performance, it must be managed effectively and efficiently. Two dimensions of organizational performance are used in this essay. The first is how much the business organization succeeds in achieving its goals and objectives (Osaze & Anao, 2000). The degree to which the business organization keeps its commitments to its stakeholders is the second dimension of organizational performance. The internal and external stakeholders are among the two categories of stakeholders. Customers, suppliers, contractors, and the general public make up the external stakeholders in addition to employees, managers, board members, and shareholders who make up the internal stakeholders (Ogbo, Kifordu & Ukpere, 2014).
Diversity, in the words of Kreitner and Kinicki (2004), refers to both the many ways in which people differ from one another as well as the ways in which they are similar. In their definition, Kreitner and Kinicki place particular emphasis on three fundamental diversity management issues: Diversity applies to all employees and covers the full range of personal differences that make each person unique, not just a select few. As a result, diversity cannot be reduced to racial or religious distinctions alone; rather, it is the sum of all differences. The idea of diversity describes both the differences and the similarities between people. These two elements must be addressed and managed concurrently in order to effectively manage diversity. Therefore, managers are expected to incorporate the organization's overall mixture of employee differences and similarities. Since
there are four layers to diversity, it can be said to have four layers (Kreitner & Kinicki 2001):
1. Personality: This describes the constant collection of traits that determines a person's identity. An individual can exhibit many different kinds of personality traits.
These characteristics can be found in a person's action, their thought process, and their attitude. In addition, there are two categories into which personality traits can be divided: positive personality traits and negative personality traits. The following table provides a classification of some of these characteristics:
Table1: Personality Traits Positive traits Negative traits
Honesty Unfriendly Patience Obnoxious
Trusting Rude
Intelligent Laziness Reliable Self centered Source: Kreitner and Kinicki, 2004
2. Internal Dimensions: These qualities are traits that significantly affect how people perceive, anticipate, and behave toward one another. These include things like age, physical prowess, gender, sexual orientation, ethnicity, and race.
3. External Dimensions: These characteristics are aspects of ourselves over which we have some degree of control or influence. They include things like money, hobbies, religion, work experience, work experience, appearance, marital status, and ocation.
4. Organizational Dimensions: These factors have bearing on or importance for the organization as a whole. They comprise elements like management status, unit or division, work field, seniority, union membership, and status in management.
Affirmative action is currently used as a strategy to create a diverse and integrated workforce. According to Kreitner and Kinicki (2004), affirmative action is a manufactured intervention meant to give management a chance to rectify unfairness, an imbalance, a mistake, or outright discrimination. It does not create a need for leadership to change their perspective on diversity management.
According to Okolie (2019), while affirmative action and black economic empowerment are important, the private sector should be
allowed to concentrate on generating wealth and opening up new economic opportunities rather than just providing jobs for those who were previously under-employed. The term
"valuing diversity" refers to a higher degree of
"diversity awareness" resulting from affirmative action. In order to value diversity, it is important to be aware of, understand, respect, and value human differences.
Employees who feel valued and accepted are seen as valuable resources who directly contribute to an organization's success at large when diversity is valued. According to Donnelly (2015), in order for an organization to value diversity, it must first comprehend the distinctions between that value and employment equity. The primary distinction is that employment equity is governed by law.
Because it wants to use the talents of a diverse workforce to gain a competitive advantage, management values diversity.
The field of diversity management represents the highest level of diversity awareness. All employees can work to their full potential when organizational changes are made with intention and focus. Numerous immigrants have settled in Nigeria, bringing with them a variety of ethno-cultural traditions from their home countries. This put the country under pressure to use these differences as strength. Gaining a competitive advantage through the management of diversity has grown in importance among managers and, consequently, among leaders (Abidi, Zain, Youssef, Habibiniya & Baran, 2017).
It is obvious that changing existing attitudes about diversity in the workplace requires more than just strong leadership; it also requires everyone's cooperation because it affects how they interact with one another.
Managers must therefore demonstrate leadership qualities and go beyond the typical tasks of organizing, planning, and controlling.
Managing diversity is a necessity for competition, a strategic priority, and a business imperative (Okolie, 2019). Donnelly (2015) concurs with this point of view and adds that if diversity is not used as a tool, it may lead to the demise of businesses.
Required Tools for Managing a Diverse Workforce
In order to effectively manage diversity, managers must be aware of the skills required to build a diverse workforce that is both productive and successful. In order to succeed in the organization, leaders and managers must understand discrimination and its effects.
Managers need to be aware of their cultural preferences. They must understand that individual differences make up diversity and support the idea that every person is special in their own way. In order to succeed in the future, managers must also be prepared to alter the organizational culture when necessary and learn how to manage a diverse workforce effectively (Bana, 2019).
Unfortunately, there isn't a single formula that a business can use to be successful, so it depends on the manager's ability to determine what is best for the business based on teamwork and workplace dynamics. According to Okolie (2019), diversity management entails a comprehensive procedure necessary for establishing an inclusive workplace. Managers must, first and foremost, concentrate on personal awareness when fostering a successful and diverse workforce. It's important for both employers and employees to disclose any biases they may have.
Organizations must constantly develop, implement, and maintain ongoing training and awareness creation because a single training session is insufficient to alter people's attitudes and behaviors.
More than just offering equal employment opportunities is involved in diversity management. Despite the fact that change often happens slowly, managers should still support it. Dealing with diversity also requires creating a safe space for managers and employees to interact. Examples of such spaces include social gatherings and business meetings where everyone feels at ease and fosters a welcoming environment where people can speak openly and listen to others.
Implementing mentoring programs will help employees learn how to access information.
After employees have learned from their mistakes and successfully applied the lessons learned to achieve success, they should receive constructive feedback (Okolie, 2019).
Cultural mentoring as a Tool for Managing Workforce Diversity
Culture can be defined as a person's way of life and the characteristics they exhibit, such as their behaviors, beliefs, values, and symbols, that they generally accept from generation to generation. Each business has its own in a business sense. Company culture is a general guide to the organization that includes various forms of activities for various working positions. Older employees and new hires alike can benefit from a cultural mentor's assistance in understanding culture in a novel setting.
The cultural mentor has a special responsibility to explain to the mentee how things are done in the organization and how behavior should be interpreted. Some businesses typically view the human resources division or the human resources manager as the organization's mentor (Okolie, 2019).
While other businesses occasionally ask a person or group to serve as a mentor for them, or even hire them in some cases. The ultimate objective of a mentor is to be able to assist participants or employees in realizing their own potential and maximizing it. To be a successful cultural mentor, one must identify the areas in which they are knowledgeable, at ease, and have the potential to excel. These places would both incorporate and represent the individual. According to the aforementioned perspectives and justifications, a cultural mentor is a person or a group of people who acts as an example for developing a goal (Okolie, 2019).
Reasons for Diversity Management in Organizations
Globalization: The process of organizations or businesses beginning to operate on a global scale is known as globalization. Businesses are more willing to expand their operations internationally and choose productive locations. Worldwide differences in input costs entice businesses to move some of their production to regions where labor, for example, is less expensive, but these moves are typically restricted to developing nations. Workforce diversity is an important factor for businesses looking to establish themselves (Kreitz, 2008).
Talent Shortage: Lack of talent is one justification for workforce diversification.
Organizations are learning that in a time of
severe talent shortages, they must successfully recruit, inspire, retain, and use their valuable employees if they want to remain competitive.
Management of diversity can lower absenteeism and unwelcome turnover.
Companies should not discriminate against any group on the basis of gender, race, or religion in order to maximize the potential of their workforce. By doing so, they risk missing out on the person who will create the next well-known and lucrative product or who will make another valuable contribution in marketing, computing, engineering, or another field (Kreitz, 2008).
Range of Consumer Need: Even though an organization's locality or home base may be situated in a culturally imaginable market, there may be significant customers who are situated in other more diverse communities, either in its home country or abroad. In recent years, organizations have recognized that they can best serve different customer groups in many different markets in a more diverse workforce. Employing people who speak the dominant languages is advantageous for businesses in areas where they are spoken by the majority. Additionally, they might use a diverse workforce to create goods that appeal to a variety of buyers (Kreitz, 2008).
Barriers to Effective Diversity Management Leaders and mentors may face difficulties when trying to manage a diverse workforce. (Kreitner & Kinicki, 2004) Some typical obstacles to implementing diversity management include:
1. The challenge of balancing career and family: This challenge is most likely to face women. Women are still expected to manage the household and care for young children in contemporary society. The majority of household duties still fall on women, despite changing attitudes.
2. A hostile and unwelcoming work environment for people of color: People of color aren't allowed to participate in social activities, which prevent them from forming networks with other workers.
3. Discrimination fears: People are hesitant to apply for jobs where there are people of nationalities other than their own out of fear of being discriminated against.
4. Diversity is not viewed as an organizational priority: Employees might
not see diversity initiatives as work that helps the company succeed.
5. Resistance to change: Fear of failure, mistrust, and peer pressure are a few factors that cause people to resist change.
It is the responsibility of leadership to meet these challenges by effectively educating the public and controlling perceptions when they become threatening.
Performance
Performance is the difference between an organization's actual output or results and its intended outputs (or goals and objectives).
Performance includes three distinct areas of firm outcomes, according to Subhash and Archana (2017): (a) financial performance (profits, return on assets, return on investment, etc.); (b) product market performance (sales, market share, etc.); and (c) shareholder return (total shareholder return, economic value added, etc). A good organizational performance results from good employee performance, which ultimately increases an organization's success and effectiveness. The opposite is also true.
Further research into these moderators revealed significant relationships between organizational commitment and work behavior when compared to self-reported and supervisory reports of performance. The issues for the organizations arise when they begin to believe that their organizations are already operating at their highest levels and with exceptional efficiency and that there is no need for further improvement (Ugwuzor, 2014). Therefore, keeping in mind that these barriers result in underdeveloped competencies and moreover lead to, ultimately, organizational ineffectiveness, they must be addressed. The performance of an organization's employees ultimately determines whether it succeeds or fails.
Six fundamental ideas are developed and connected by the theory of performance to create a framework that can be used to explain performance as well as performance enhancements. To perform is to deliver worthwhile outcomes. A performer may be a single person or a group of people working together. As a result, improving performance is a journey, and where you are on the journey is described by your level of performance. The
context, level of knowledge, level of skills and identity, personal factors, and fixed factors are the six components that make up the current level of performance holistically. To improve performance effectively, three axioms are put forth. They entail adopting a performance mindset, spending time in a stimulating environment, and practicing reflectively (Bransford, Brown & Cocking, 2000).
Diversity Management and Performance Effectively managing workforce diversity enhances competitive advantage. A strategy component called competitive advantage gives an organization a unique competence. This ability and advantage result from the way that effective diversity management influences organizational behavior and performance (Kreitner & Kinichi, 2004). Effectiveness, or doing things correctly, is a factor in organizational performance. Therefore, reducing costs and improving employee attitudes will be made possible by effectively managing workforce diversity. There are three ways to cut costs. First of all, it lowers health care costs. Additionally, it lowers absenteeism.
Thirdly, by managing workforce diversity effectively, employee recruitment and training costs can be minimized (Unyimadu, 2006).
Sales, market share, and corporate profits all benefit from effectively managed workforce diversity. This is due to the fact that consumer diversity is the major image of work force diversity. These result in increased sales, market share, and corporate profits (Kreitner
& Kinichi, 2004).
Workforce diversity fosters innovation, creativity, and productivity, according to researchers like Schultz, Bagraim, Potgieter, Viegde, and Werner (2003). Sharing various viewpoints and ideas facilitates this. One of the first to look into this connection was Kanter (2006). She discovered that innovative businesses employed more women and people of color than less innovative businesses and purposefully assembled diverse teams to solve problems. This is due to the fact that diverse groups had a wider range of perspectives and experiences (Kreitner & Kinichi, 2004). Similar to this, quality education, whether it be full- time or part-time, improves exposure, training, and development. Managing workforce diversity encourages comprehension and amiable acceptance toward the achievement of
the organization's overall goals through performance. In a 2017 study, Edewor, Yetunde, and Onabanjo looked into diversity management, opportunities, and challenges in multicultural organizations. The study comes to the conclusion that it is critical for employers and policy makers to comprehend shifting workforce demographics and the effects of growing diversity on employee behavior. By using a few specific Breweries, Odita and Egbule (2015) sought to evaluate the effects of workforce diversity on organizational effectiveness in the brewery industry. The results demonstrate a significant positive relationship between workforce diversity and organizational effectiveness, with cultural diversity being found to be particularly beneficial.
The nature of the connection between Workforce Diversity Management and Corporate Performance of manufacturing firms in Nigeria was examined by Ugwuzor (2014). The results showed that poor management of surface and deep level diversity may be the cause of the Study firms' apparent low performance rate. The effects of workplace diversity on worker performance were studied by Akpakip (2017). The study's findings revealed that, with the exception of ethnic diversity, all aspects of workforce diversity have a significant impact on employee performance. The results showed that workers' attitudes toward workplace diversity were neutral. Culturally diverse workforce and performance in Nigerian public service: issues and challenges in the context of people's management were examined by Agbonifoh (2017). It examined the strategies used and initiatives made by succeeding governments to turn cultural diversity into an asset rather than a liability. Additionally, Zahradeen (2017) conducted research on the effects of workforce diversity on organizational performance in Nigeria's Cross River State. According to the study, there is a significant correlation between some of the organizational performance measures and both individual and collective diversity factors.
Coca-Cola Company and ON Workplace Diversity
The information gathered about the Coca-Cola Company is based on publicly accessible online resources. The majority of
the data was gathered from the business' website and articles that had been written. The information was gathered with the intention of learning more about the company's involvement in workplace diversity, the effects it has had on those activities and success, and to analyze other workplace diversity-related challenges the company has faced.
Figure 1: The Business Logo of Coca-Cola Company.
A multinational corporation, the Coca- Cola Company has operations in most countries around the world, including Nigeria.
The business produces non-alcoholic beverages and sells them both wholesale and retail. Atlanta, Georgia, in the United States of America, is where the company's headquarters are. John Stith Pemberton created Coca-Cola in 1886. The Coca-Cola Company was sold by its original creator to Asi Griggs Candler in 1889.
The company currently offers more than 500 brands, and it has operations spread across more than 200 nations worldwide.
Global Diversity Mission of the Coca-Cola Company
The Coca-Cola Company's global diversity mission is to be recognized for its leadership in promoting diversity, inclusion, and fairness in all facets of the workplace, including the workforce and the wider economy. The head of Diversity and Leadership, Muhtar Kent, explains that (The Coca-Cola Company No. 38 in the diversity and inclusion top 50). Everything the Coca-Cola Company does in terms of diversity is founded on the same straightforward, significant, and universal principle: Our diversity should be as inclusive as our brands. In order to "achieve true diversity" across our business, which is a key component of our 2020 Vision, we must first create a diverse and inclusive workforce.
Since diversity is at the core of their business, Coca-Cola constantly works to foster an environment at work where everyone has access to information and equal opportunities
(Coca-Coca Company, 2020). As a multinational corporation, the business welcomes diversity in the workplace and the marketplace and works tirelessly to advance its diversity journey. As a result, the company has won a number of catalyst awards to acknowledge their hard work. Coca-Cola was ranked as the 38th best company for inclusion and diversity out of 50 in 2013 (Coca-Coca Company, 2013).
Diversity Challenges at Coca-Cola Company Diversity in the workplace is weighed down with a variety of myths, misunderstandings, and baggage. Managers have been looking for different approaches to handle workplace diversity, which has presented some difficulties. Listed below are some of the difficulties Coca-Cola has faced and is still attempting to overcome (Coca-Coca Company, 2020). Every country has a different culture and history: Each nation has its own culture. In order to be competitive, Coca-Cola must take into account local cultural differences when designing the organizational structure of each country where it does business. Employees quitting their jobs because they are relocating to another region include:
1. Enabling workplace diversity for workers:
It can be challenging at times to help employees balance their personal and professional lives. Coca-Cola is now in a position where it must constantly search for the best answer to the problem. The main problem is that there are a lot of women and disabled workers. High cost of managing diversity.
2. To help employees understand diversity, Coca-Cola invests a lot of money in mentoring and training programs. Suits:
When employees believe they have been the victim of racial discrimination, they file lawsuits against Coca-Cola. 16 employees recently filed a lawsuit against the company after feeling discriminated against (Marzuli, 2012).
Coca-Cola Company Successful Diversity Implementation Measures
A company must put some measures in place before attempting to successfully implement diversity at the workplace so that it can monitor its progress. To combat diversity
issues, the Coca-Cola Company has established a number of platforms for employee diversity training and implementation:
Diversity Education and Training
To advance its ongoing workplace diversity journey, Coca-Cola has established ongoing diversity training. These various diversity education initiatives have been effective in reducing disputes and legal action while also assisting employees in resolving diversity-related issues. Over time, education and training have improved, strengthening managers' and employees' abilities to capitalize on value and respect individual
differences to steadily improve business results. Three main pillars make up the diversity education and training, including the Diversity Speaker Series, which involves inviting speakers and guests to speak to employees about diversity. Library for Diversity Where employees can easily access all diversity-related information so they can learn more about the company's diversity initiatives and successes as well as individuals' diversity. Finally, diversity education and training aims to train employees to put what they learn into practice and help drive their engagement while also educating them on how to deal with their differences.
Figure 2: The three Pillars in Diversity and Education at Coca-Cola Company By fostering a diverse workplace, the
three pillars of diversity training complement each other and work together to boost performance. The image above could serve as an illustration of the pillars (Coca-Coca Company, 2013).
Coca-Cola Diversity Management Tools Coca-Cola set up a number of mentoring and outreach groups to inform employees and serve as a tool to address diversity challenges as well as guide employees through the day-to- day activities at work and in their personal lives in order to successfully manage a diverse
workforce and continue to promote its diversity initiative. Some of the groups are described below, to name a few: (2013) The Coca-Cola Company Lesbian, Gay, Bisexual, Transgender, and Ally (LGBTA) at Coca-Cola:
The group wants to encourage a workplace where everyone feels included. It establishes a platform for communication where employees can express their diversity and contribute to the success of the business. The Coca-Cola African-American Business Resource Group is a proponent of an inclusive, winning culture that values the diversity of individuals and the
wealth of skills within the African American community.
The Coca-Cola Business Support Professionals Business Resource Group is a group that supports employees' professional growth and encourages excellence in the workplace. The Women's Business Resource Group, also known as Women's Link, aims to
encourage, develop, and involve women employees in the business in order to build a reputation as a place where women are respected. The business was honored with the 2013 Catalyst award in recognition of its efforts to advance women in the workforce (Coca-Coca Company, 2020).
Benin Plant - Edo State, Nigeria
Since 1970, the Benin Plant has been operational. It is situated in South-South Nigeria, precisely Eyaen in Edo State. The facility manufactures and distributes all product categories, including Coca-Cola, Fanta, Sprite, Schweppes, and Five Alive.CCHBC 2019 Best Plant of the Year,
1. NBC 2019 Best Plant of the Year,
2. NBC Most Engaged Manufacturing Team Plant of the Year - 2017, 2018 and 2019, 3. NBC Only Preform Production Plant, 4. NBC 2019 Best Plant in Transportation
Cost and Efficiency,
5. NBC Q1 2020 Winner of ICSC Champions League Award.
Investments made by the Coca-Cola Company in the South-South region of the nation demonstrate the company's dedication to providing value for all stakeholders while upholding high standards of ethics. In a company like the Coca-Cola Company, performance is a crucial concept. Boyne, Farrell, Law, Powell, and Walker (2003) assert that management of any organization places a high priority on performance data. In order to improve services for the sake of the organization's survival and growth, it aids management in determining whether their
organizations are advancing, regressing, or remaining static.
The Coca-Cola Benin Plant in Edo State established a number of meeting and outreach groups that aim to educate and serve as a tool to address diversity challenges as well as guide employees through the day-to-day activities at work and in their personal lives in order to successfully manage a diverse workforce and continue to promote its diversity initiative.
The Benin Plant offers a support network, supports networking, and promotes employee freedom of choice. It also ensures that disabled employees have flexible schedules and comfortable working conditions by giving them the necessary resources and networking opportunities, and it fosters leadership and development through counseling and discussions about diversity with top management. Additionally, the Benin Plant sponsors seminars and mentoring programs for staff members, works to advance religious tolerance and understanding, world peace, and respect for all people, and brings together staff members from various religious backgrounds to enable them to express their faith in a meaningful and respectful manner.
THEORETICAL FRAMEWORK Social Identity Theory
According to this theory, people tend to categorize themselves into precise groups based on traits that are important to them personally, such as demographic distinctiveness like ethnicity, gender, etc. As a result, they tended to favor their in-group peers at the expense of those from other groups. In order to explain staying outside at work, Tajfel (1978) first developed this theory.
Tajfel (1978) defined social identity theory as the aspect of an individual's self-concept that derives from his or her membership in one or more social groups, as well as the significance and the emotionally charged consequences associated with that membership. Social identity theory, according to Korte (2007), aims to explain group membership and behavior. Thus, the social identity theory predicts that when people identify as belonging to a particular ethnic group, as is typically the case (e.g., Yoruba to Yoruba, etc.), they will likely favor those who belong to the same ethnic group as them (in-group) over those of other ethnicities (out-groups).
Identity theory assists diverse organizations in managing diversity in a way that balances the positive and negative effects of diversity while still enabling them to reap the benefits of both. We believe that in order to accomplish this, it is essential to stop employees from grouping themselves into various cultural identities and to promote the inclusion of all cultural groups within the organization as a whole, without downplaying cultural differences. People's need to identify with and be a part of social groups is fundamental, even in a complex social setting like an organization. Therefore, there is a general tendency to think about and act in accordance with established group barriers.
The paradigm offered by social identity theory helps to explain these occurrences (Tajfel &
Turner, 1986). The characteristics of a social group that a person identifies with become an integral part of the self. When individuals identify with other group members, they experience a sense of security that enables them to anticipate and give meaning to their social environment. Additionally, a favorable evaluation of one's own group in comparison to out-groups can be a source of self-esteem, which can lessen the negative effects of
diversity and enhance organizational performance.
One could use the company as a whole as an illustration. Instead of classifying themselves as members of various cultural subgroups, employees might concentrate on being part of the same organization. This concept holds a lot of potential because it expands the advantages of group membership, such as commitment, performance, and cooperation (Dovidio, Gaertner, & Esses, 2008). Additionally, employees may feel accepted within the company regardless of their cultural background (reducing the unfavorable effects of diversity brought on by categorization), while still being able to maintain their cultural identities (thus opening the door for the possible benefits of diversity;
e.g., increased creativity). The following objective and null hypothesis were established for this study based on the literature review.
Objective of the study
To investigate the impact of workplace diversity on the performance of Coca-Cola Company, Benin City, Nigeria
Hypothesis of the Study
To achieve the objective of this study the null hypothesis stated in research form was tested:
H0: Workplace diversity has no significant influence on the performance of Coca-Cola Company, Benin City, Nigeria.
RESEARCH METHODS
The term "research method" refers to conducting an investigation to add to one's existing understanding and knowledge of a particular discipline by acquiring new information or ideas (Myers 2009).
Furthermore, he clarified that research could also be thought of as the act of developing a task that aids in the generation of a novel notion or piece of information. The theory employed in the findings and interpretation of the research may differ in some other ways from the body of existing knowledge or literature, which is why the knowledge is categorized as new. Both primary and secondary sources of information were used to create this work. The research design used in the study was survey. The study's sample size of 148 respondents served as its foundation.
The study used a method of systematic random sampling. This method's justification is based on the fact that it gives every subject in the sampling frame an equal opportunity to be chosen in a methodical, biased manner. The Coca-Cola Company Benin-Warri Road, Benin City - Business & Services staff list, which included 183 senior staff in grades 06–17 and 67 junior staff in grades 01–5, served as the basis for the sampling frame. In order to establish the study's reliability and validity using the Smart PLS Criterion, a preliminary pilot study of 20 workers without replacement was conducted. The questionnaire items were adapted from the literature.
According to Table 2, the values for the two constructs' respective Cronbach's alpha
and composite reliability range from 0.757 to 0.773 and 0.865 to 0.879, respectively. Given that the values of the composite and Crombach's alpha coefficients are higher than the cutoff of 0.70, it implied that all the constructs are reliable (Hair, Hult, Ringle &
Sarstedt, 2017). The discriminant validity values of Average Variance Extract (AVE), which are also above the standard of 0.50, support the reliability findings (Hair et al., 2017). As a result, all the constructs used in this study demonstrated high internal consistency and reliability. Statistical Package for Social Sciences (SPSS) software version 23.0 was used to perform a linear regression analysis and a Spearman's rank correlation coefficient on the collected data.
Table 2: Validity and Reliability Results
Construct Number
of items Composite
Reliability Cronbach’s
Alpha Average Variance
Extract Workplace diversity
Performance 7
9 .865
.879 .757
.773 .623
.597 Source: Field Survey, 2023
RESULTS AND DISCUSSION Hypothesis Testing
Workplace diversity and performance were found to be positively and significantly
correlated in Table 3 (r = 0.783, n = 148, p = 0.025); the more diverse an organization is, the better its employees’ performance, particularly at Coca-Cola Company in Nigeria.
Table 3: Correlation Results
Independent variable Value R Correlation with Performance Sig. (P)
Workplace diversity .783** .025
** Correlation is significant at the 0.05 levels (2-tailed) Influence of Workplace Diversity on Performance of Coca-Cola Company, Benin City, Nigeria
A linear regression analysis was conducted to confirm the impact of workplace diversity on performance because correlation does not imply causation. The effect of
workplace diversity on performance was calculated using a linear regression. The linear regression analysis, which was performed at the 5% level of significance, was used to test the study's original hypothesis once more. The test's summary results are shown below.
Model Summaryb
Model R R Square
Adjusted R Square
Std. Error of the Estimate
Change Statistics
Durbin- Watson R Square Change F Change df1 df2
Sig. F Change
1 .343
a .108 .096 .5282 .108 15.025 1 147 .000 1.955
a. Predictors: (Constant), Workplace diversity b. Dependent Variable: Performance
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1 Regression 13.782 1 8.232 15.025 .000b
Residual 60.824 147 .495
Total 74.606 148 a. Dependent Variable: Performance
b. Predictors: (Constant), Workplace diversity
Coefficientsa Model
Unstandardized Coefficients Standardized Coefficients
T Sig.
B Std. Error Beta
1 (Constant) 2.538 .307 6.785 .000
Workplace diversity .436 .095 .384 4.657 .000
a. Dependent Variable: Performance
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 2.2764 4.6773 3.5843 .22365 148
Residual 2.2331 4.1320 .00000 .63405 148
Std. Predicted Value 4.785 5.128 .000 1.000 148
Std. Residual 3.372 6.276 .000 .897 148
a. Dependent Variable: Performance Based on the model summary that the regression analysis provided, we deduced that the influence of workplace diversity on performance had an R-squared value of 0.108, which is the coefficient determination. This value indicates that workplace diversity causes or explains 10.8% of the increase in performance at the Coca-Cola Company, Benin City, Nigeria, while the remaining 89.2% of the causes of the change are other factors that are not accounted for by the model but are handled by the error terms. When the degree of freedom was taken into account, the coefficient of determination produced 0.096, or roughly 9.6%. This showed that after adjusting for degree of freedom, workplace diversity accounted for about 9.6% of the systematic (change) in performance. The regression analysis's Durbin-Watson statistic of 1.955 suggests that there was no serial autocorrelation, and the model can be trusted to be accurate when determining how to proceed with the relevant policies.
Overall, there are statistically significant linear relationships between workplace diversity and performance at the Coca-Cola Company, Benin City, Nigeria, according to the F-statistic test of 15.025 at prob (Sig) =.000b
performed at 5% level of significance. The results showed a significant relationship between workplace diversity and performance in Coca-Cola Company, Benin City, Nigeria, as indicated by the t-statistics of 4.657 at p-value (sig) of 0.000 from the model for performance, which is less than 5% level of significant.
According to the coefficient of 0.436, The Coca- Cola Company, Benin City, Nigeria, saw a 43.6 percent (%) increase in performance for every one percent greater workplace diversity.
DISCUSSION
This research was undertaken to know the impact that workplace diversity on the performance of Coca-Cola Company in Nigeria.
It also sought to tackle the systemic obstacles that impede building a diverse and an inclusive workforce that are generally represented by the citizens within the communities that the companies operate. The study also revealed that workplace diversity has positive and strong significant correlations with performance of Coca-Cola Company, Benin City, Nigeria. This finding is consistent with previous research by Schultz et al. (2003), Akpakip (2017), and Agbonifoh (2017). Also, the findings of the study showed that
workplace diversity had significant positive influence on performance of Coca-Cola Company, Benin City, Nigeria. The result was supported by the findings of Schultz et al.
(2003); Akpakip (2017); Agbonifoh, (2017) and Zahradeen (2017) which revealed the influence of workplace diversity on performance in the workplace. This finding also corroborates with the findings of Osibanjo, Adeniji, Falola, Salau, Ogueyungbo and Efe-Imafidon (2020) study which revealed that workplace diversity had significant positive effect on firm performance in South East Nigeria.
The decision to diversify the workforce, which is dependent on the kind of commitments and the willingness to devote time and resources crucial to safeguard the accomplishment of the implemented plan, was very relevant to the Coca-Cola Company. As a result, modern organizations succeed when they do so. This study also showed that workplace diversity is about providing employees at all levels with the resources and assistance necessary to foster an innovative workforce that helps to increase competitive advantage in a labor market that is becoming more viable. It was also discovered that diversity management tools and techniques that the company used have been successful even though there were some challenges such as discrimination or nepotism, communication problems and resistance to change by coworkers, racism etc., existed.
With the aim of effectively educating the workforce on workplace diversity and assisting them in both their personal and professional lives, Coca-Cola has established a variety of employee resource groups. The multinational corporation thinks that diversity is essential for surviving in a multicultural society in a more sustainable way. Most companies will prosper when they diversify their operations, but doing so also necessitates creating plans for how to best utilize and take advantage of workforce diversity. The strategy an organization uses to deal with diversity will determine whether it has a positive or negative impact. The Coca-Cola Company considers workplace diversity to be the norm for the company and, as such, cannot be disregarded. They are among the most prosperous and influential companies in the world as a result of this mindset. According to
The Coca-Cola Company, effective diversity management calls for a committed workforce that is persistent in achieving the goal of integrating diversity into an organization in a way that is highly sustainable.
CONCLUSION
For an organization to succeed, understanding the impact of workforce diversity on organizational performance is essential. Workforce diversity has been shown to enhance organizational performance because of its broad scope and the specialization it adds. Additionally, promoting employees' educational and professional development implied that workforce diversity could motivate them to work hard to meet organizational goals and objectives. Similar to personal profitability, corporate profitability is a function of performance linked to the synergy of the similarities and differences of the staff members that may result in higher revenue over cost. The study draws the conclusion that it is critical for employers and policymakers to comprehend shifting workforce demographics and the effects of growing diversity on employee behavior.
Tensions over cultural issues are likely to increase as the workforce becomes more diverse. People's energy can be severely depleted by cultural conflicts, especially minority workers who are more likely to feel oppressed by the differences. This shift in the workforce's demographics presents opportunities and challenges for employers and other leaders. Leaders who failed to consider the demographics of their workforce are at a competitive disadvantage. In order to facilitate effective succession planning and integration, the personnel department must make sure that members of different ethnic groups, ages, and genders are fairly represented when teams are formed in the workplace. This requires close coordination with top management. Consequently, this study suggests the following:
1. Cultural mentoring is a tried-and-true technique for introducing managers and staff members, both new and seasoned, to the workplace and their responsibilities.
Organizational leaders and managers should use it.
2. In order to promote innovation and creativity, organizational leaders and
managers should create policies that prohibit gender discrimination in their organizations.
3. To improve organizational performance, effectiveness, and corporate profitability, organizational leaders and managers should make an effort to develop policies on diversity management.
Management Implications
Given that workforce diversity may have both positive and negative effects on an organization, the organizational culture and business strategies of the company should be taken into consideration when deciding whether or not to completely diversify its workforce. However, it is up to the business to determine the best strategies that will successfully fit into its target market. The organization must put into practice its workforce diversification strategy if it determines that it is the best way to increase performance. This study suggests that managers should have a more positive and accurate perception regarding the implementation of workplace diversity in order to create a healthy working environment within the circles of workplace diversity. The study offers important advice in the form of suggestions and recommendations that can be used to enhance workforce diversity management practices generally. This study is helpful to businesses that want to develop inclusive cultures rather than exclusive ones.
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