Isaac Scientific Publishing

Frontiers in Management Research

Effect of Employee Diversity on Firm Performance in Bangladesh

Download PDF (434 KB) PP. 26 - 39 Pub. Date: January 10, 2019

DOI: 10.22606/fmr.2019.31004


  • Homayara L. Ahmed1, Tanisha Bukth2
    1 Assistant Professor, Institute of Business Administration, University of Dhaka, Bangladesh
    2 Lecturer, Institute of Business Administration, University of Dhaka, Bangladesh


In the changing world, diversity in workplace is the new reality not just for complying with equal employment opportunity but also for catering to their diverse customer base. There are theories that have spoken both for and against the proliferation of diversity. Theories such as Ashby’s Principle of Requisite Variety and Information / Decision-making Perspective suggest that certain diversity attributes heighten the benefit of heterogeneity in organizations that in effect, ameliorate the quality of decision-making. Moreover, many previous studies have shown that workplace diversity indeed affects firm performance positively. The current research has studied the relationship of core diversity factors (such as gender, religion and race) that are relevant in the context of Bangladesh with organizational performance; and the study was conducted with both primary and secondary data from 80 listed firms in the Dhaka Stock Exchange. Research findings show that there is a significant positive relationship between organization-wide gender diversity and firm performance.


Employee diversity, gender diversity, firm performance, Bangladesh.


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