Diversity Management Strategies and Quality Decisions in the Banking Sector

Abstract

The Top Management Team diversity discussed in the study is the extent to which the executive team is heterogeneous with respect to gender, age, academic qualifications, tenure, professional qualifications and functional backgrounds and how this aids quality decisions in the banking sector. Furthermore the study suggests that top management characteristics, specifically their demographic configuration could impair decision making which is the main objective and focus. Other researchers have shown that workforce diversity can provide positive organizational outcomes such as increased morale, higher satisfaction, greater commitment and improved performance. The questionnaire was the main tool of data collection. Cross sectional survey was adapted as the methodology of research where the target respondents were Heads of Human Resources in 43 banks. The data was analyzed using descriptive statistics and regression analysis. The TMT diversity attributes under study were age, gender, academic qualifications, tenure in the bank and at the top, professional and functional background diversity. These variables were used to determine the existing gaps in knowledge, whether these attributes were crucial in making quality decisions. The study also used secondary data obtained from the Banking sector to measure performance in terms of increase in customer deposits, increase in average assets and profit before tax. The study established that tenure in the banking sector has a major implication in the quality of decisions made within the Top Management Teams of organizations.