Managing Diversity Through Leadership and Emotional Intelligence in the Banking Sector of Pakistan: A Moderating Role of Organizational Culture

Main Article Content

Burhan Sami
Ahmed Saeed Minhas
Usman Ahmad
Kashif Akram

Abstract

The moderation effect of organizational culture has also been examined. The quantitative approach has been used in data collection, and 182 sample responses have been gathered from the banking industry employees of Pakistan. The data has been analyzed by employing PLS-SEM. The results have shown that transformational and transactional leadership positively and insignificant affect workplace diversity. However, emotional intelligence has a positive and significant effect on workplace diversity. Besides, organizational culture has a positive and significant moderation effect between transactional leadership and workplace diversity. The organizational culture has a negative but insignificant moderation effect between transformational leadership and workplace diversity. The organizational culture has a negative but insignificant moderation effect between emotional intelligence and diversity. Managers are recommended to ensure transparency when identifying roles and expectations of the task amongst employees. Secondly, establish reward systems upon effective outcomes. Thirdly, state the punishments with utmost clarity.

Article Details

How to Cite
Sami, B. ., Minhas, A. S. ., Ahmad, U. ., & Akram, K. . (2021). Managing Diversity Through Leadership and Emotional Intelligence in the Banking Sector of Pakistan: A Moderating Role of Organizational Culture. IRASD Journal of Management, 3(3), 268–284. https://doi.org/10.52131/jom.2021.0303.0044
Section
Articles
Author Biographies

Burhan Sami, DHA Suffa University, Karachi, Pakistan

PhD Scholar, Management Science Department

Ahmed Saeed Minhas, DHA Suffa University, Karachi, Pakistan

Pro-Vice Chancellor, Management Science Department

Usman Ahmad, DHA Suffa University, Karachi, Pakistan

Assistant Professor, Management Science Department

Kashif Akram, Islamia University Bahawalpur, Pakistan

Assistant Professor, Department of Leadership and Business Management, IBMAS

References

Ab Hamid, M., Sami, W., & Sidek, M. (2017). Discriminant validity assessment: Use of Fornell & Larcker criterion versus HTMT criterion. Paper presented at the Journal of Physics: Conference Series.

Ali, I. S. (2021). A Correlational Study of Organizational Culture and Workforce Diversity & Competitiveness in a Challenging Global Educational Environment. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 12(4), 1-15.

Andoh, J. S., Ghansah, B., Okogun-Odompley, J. N., & Benuwa, B.-B. (2019). Impact of Workplace Diversity on Employee Performance: A Case of Some Selected Private Universities in Ghana. International Journal of R&D Innovation Strategy (IJRDIS), 1(2), 31-43.

Anglim, J., Sojo, V., Ashford, L. J., Newman, A., & Marty, A. (2019). Predicting employee attitudes to workplace diversity from personality, values, and cognitive ability. Journal of Research in Personality, 83, 103865.

Arnold, S. (2019). A Quantitative Descriptive-Comparative Study: The Relationship between Emotional Intelligence and Workplace Diversity. University of Phoenix,

Aydin, B., & Ceylan, A. (2009). The effect of spiritual leadership on organizational learning capacity. African Journal of Business Management, 3(5), 184-190.

Bana, W. M. (2016). Effect of organizational culture on workplace diversity in public universities in Kenya. International Journal of Education and Research, 4(8), 241-256.

Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the vision. Organizational dynamics, 18(3), 19-31.

Bass, B. M., & Bass Bernard, M. (1985). Leadership and performance beyond expectations.

Bastari, A., Eliyana, A., & Wijayanti, T. (2020). Effects of transformational leadership styles on job performance with job motivation as mediation: A study in a state-owned enterprise. Management Science Letters, 10(12), 2883-2888.

Blau, P. M. (1968). Social exchange. International encyclopedia of the social sciences, 7, 452-457.

Blessing, L. T., & Chakrabarti, A. (2009). DRM, a design research methodology (1st ed.). Verlag London: Springer Science & Business Media.

Boruah, A. S. (2018). Emotional Intelligence of Higher Secondary Students of Sivasagar District of Assam: A Study of selected Associated Variables. Asian Journal of Research in Social Sciences and Humanities, 8(6), 213-227.

Brown, M., Brown, R. S., & Nandedkar, A. (2019). Transformational Leadership Theory and Exploring the Perceptions of Diversity Management in Higher Education. Journal of Higher Education Theory & Practice, 19(7).

Burns, J. M. (1995). The crisis of leadership. The leader’s companion: Insights on leadership through the ages, 8-10.

Campbell, D. T., & Fiske, D. W. (1959). Convergent and discriminant validation by the multitrait-multimethod matrix. Psychological bulletin, 56(2), 81-105.

Canagasuriam, D., & Roulin, N. (2021). The Effect of Organizational Culture on Faking in the Job Interview. Personnel Assessment and Decisions, 7(1), 8.

Çelik, S. (2018). Transformational leadership and organizational culture: Keys to binding employees to the Dutch Public Sector. Vveinhardt, J. Organizational Culture, 145-165.

Chen, Y., Ning, R., Yang, T., Feng, S., & Yang, C. (2018). Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships. Frontiers of Business Research in China, 12(1), 1-28.

Chitra, K. (2017). Dr. Chandra Mohan A, Organizational Culture and Its Influence On Workplace Diversity and Inclusion. International Journal of Civil Engineering and Technology, 8(8).

Chuang, Y. T., Church, R., & Zikic, J. (2004). Organizational culture, group diversity and intra?group conflict. Team Performance Management: An International Journal.

Clark, J. M., & Polesello, D. (2017). Emotional and cultural intelligence in diverse workplaces: Getting out of the box. Industrial and commercial training.

Cletus, H. E., Mahmood, N. A., Umar, A., & Ibrahim, A. D. (2018). Prospects and challenges of workplace diversity in modern day organizations: A critical review. HOLISTICA–Journal of Business and Public Administration, 9(2), 35-52.

Cote, R. (2017). Vision of effective leadership. International Journal of Business Administration, 8(6), 1-10.

Creswell, J. W. (2002). Educational research: Planning, conducting, and evaluating quantitative. NJ: Merrill Prentice Hall.: Upper Saddle River.

De Meuse, K. P., & Hostager, T. J. (2001). Developing an instrument for measuring attitudes toward and perceptions of workplace diversity: An initial report. Human Resource Development Quarterly, 12(1), 33-51.

Elramalli, O. M. (2020). Leadership Theories and its Styles: A Review Study. Paper presented at the Econder 2020 3rd. International Economics, Business and Social Sciences Congress.

Farashah, A., & Blomqusit, T. (2021). Organizational culture and cultural diversity: an explorative study of international skilled migrants in Swedish firms. Journal of Global Mobility: The Home of Expatriate Management Research.

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of marketing research, 18(3), 382-388.

Gardenswartz, L., Cherbosque, J., & Rowe, A. (2010). Emotional intelligence and diversity: A model for differences in the workplace. Journal of Psychological Issues in Organizational Culture, 1(1), 74-84.

Geisser, S. (1975). The predictive sample reuse method with applications. Journal of the American statistical Association, 70(350), 320-328.

Gouldner, A. W. (1960). The norm of reciprocity: A preliminary statement. American sociological review, 161-178.

Guillaume, Y. R., Dawson, J. F., Otaye?Ebede, L., Woods, S. A., & West, M. A. (2017). Harnessing demographic differences in organizations: What moderates the effects of workplace diversity? Journal of Organizational Behavior, 38(2), 276-303.

Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand Oaks,USA: SAGE Publications.

Hair, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139–152.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long range planning, 46(1-2), 1-12.

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.

Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106-121.

Henseler, J., & Fassott, G. (2010). Testing moderating effects in PLS path models: An illustration of available procedures. In Handbook of partial least squares (pp. 713-735). Berlin, Germany: Springer.

Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial management & data systems, 116(1), 2-20.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.

Hermans, C. (2021). Discernment as predictor for transformational leadership: a study of school leaders in Catholic schools in India. Journal of Beliefs & Values, 1-16.

Hersing, W. S. (2017). Managing cognitive bias in safety decision making: Application of emotional intelligence competencies. Journal of Space Safety Engineering, 4(3-4), 124-128.

Homans, G. C. (1958). Social behavior as exchange. American journal of sociology, 63(6), 597-606.

Imran, R., Fatima, A., Zaheer, A., Yousaf, I., & Batool, I. (2012). How to boost employee performance: investigating the influence of transformational leadership and work environment in a Pakistani perspective. Middle-East Journal of Scientific Research, 11(10), 1455-1462.

Jackson, L., Heyns, M., & McCallaghan, S. (2019). Exploring organisational diversity climate with associated antecedents and employee outcomes. SA Journal of Industrial Psychology, 45(1), 1-10.

Kamales, N., & Knorr, H. (2019). Leaders with Managing Cultural Diversity and Communication. Asia Pacific Journal of Religions and Cultures, 3(1), 63-72.

Kittikunchotiwut, P. (2019). Role of Transformational Leadership and Transactional Leadership on Organization Innovation. Paper presented at the Proceedings of International Academic Conferences.

Kothari, C. R. (2004). Research methodology: Methods and techniques (2nd ed.). Delhi: New Age International.

Kumari, P., & Priya, B. (2017). Impact of emotional intelligence on job performance and organizational commitment among bank managers. International Journal of Interdisciplinary and Multidisciplinary Studies, 4(3), 300-311.

Kundu, S. C., & Mor, A. (2017). Workforce diversity and organizational performance: a study of IT industry in India. Employee Relations.

Li, Q., She, Z., & Yang, B. (2018). Promoting innovative performance in multidisciplinary teams: The roles of paradoxical leadership and team perspective taking. Frontiers in psychology, 9, 1083.

Libbrecht, N., Beuckelaer, A. D., Lievens, F., & Rockstuhl, T. (2014). Measurement invariance of the Wong and Law Emotional Intelligence Scale scores: Does the measurement structure hold across Far Eastern and European countries? Applied Psychology, 63(2), 223-237.

Manzoor, F., Wei, L., Nurunnabi, M., Subhan, Q. A., Shah, S. I. A., & Fallatah, S. (2019). The impact of transformational leadership on job performance and CSR as mediator in SMEs. Sustainability, 11(2), 436.

Marlina, L., Maifizar, A., Rahmadani, I., Maulina, R., Rahmazaniati, L., Husen, T. I., & Zulkarnain, M. (2021). The Role of Mediating Leadership Morality on the Influence of Organizational Culture on the Internal Control System. Paper presented at the First International Conference on Science, Technology, Engineering and Industrial Revolution (ICSTEIR 2020).

Martin, G. C. (2014). The effects of cultural diversity in the workplace. Journal of diversity management (JDM), 9(2), 89-92.

Masterson, S. S., Lewis, K., Goldman, B. M., & Taylor, M. S. (2000). Integrating justice and social exchange: The differing effects of fair procedures and treatment on work relationships. Academy of Management journal, 43(4), 738-748.

Mayer, J. D., & Cobb, C. D. (2000). Educational policy on emotional intelligence: Does it make sense? Educational psychology review, 12(2), 163-183.

Mazur, B. (2014). Building diverse and inclusive organizational culture-best practices: A case study of Cisco Co. Journal of Intercultural Management, 6(4.1), 169-179.

McCallaghan, S., Jackson, L. T., & Heyns, M. M. (2019). Transformational leadership, diversity climate, and job satisfaction in selected South African companies. Journal of Psychology in Africa, 29(3), 195-202.

Memon, S. B., Qureshi, J. A., & Jokhio, I. A. (2020). The role of organizational culture in knowledge sharing and transfer in Pakistani banks: A qualitative study. Global Business and Organizational Excellence, 39(3), 45-54.

Mickson, M. K., Anlesinya, A., & Malcalm, E. (2020). Mediation role of diversity climate on leadership and job satisfaction in the Ghanaian public sector. World Journal of Entrepreneurship, Management and Sustainable Development.

Miller, D. W., Ngunjiri, F. W., & LoRusso, J. D. (2017). Human resources perceptions of corporate chaplains: enhancing positive organizational culture. Journal of Management, Spirituality & Religion, 14(3), 196-215.

Ng, E. S., & Sears, G. J. (2020). Walking the talk on diversity: CEO beliefs, moral values, and the implementation of workplace diversity practices. Journal of Business Ethics, 164(3), 437-450.

Obuma, G. E., & Worlu, G. O. (2017). Workplace diversity and employee engagement of banks in rivers state, Nigeria. pathology, 3(6).

Ogbor, J., & Orishede, F. (2018). Ethical Leadership and the Management of Workforce Diversity. LEADERSHIP, SECURITY AND NATIONAL DEVELOPMENT, 301.

Oyewunmi, A. E. (2018). Normalizing difference: Emotional intelligence and diversity management competence in healthcare managers. Intangible Capital, 14(3), 429-444.

Podsakoff, P. M., Bommer, W. H., Podsakoff, N. P., & MacKenzie, S. B. (2006). Relationships between leader reward and punishment behavior and subordinate attitudes, perceptions, and behaviors: A meta-analytic review of existing and new research. Organizational Behavior and Human Decision Processes, 99(2), 113-142.

Raad, G. (2019). The Relationship between Workgroup Diversity and Employees Work Performance in Lebanon.

Riaz, A., & Haider, M. H. (2010). Role of transformational and transactional leadership on job satisfaction and career satisfaction. Business and Economic horizons, 1(1), 29-38.

Sashkin, M., & Rosenbach, W. E. (1990). Organizational culture assessment questionnaire: Marshall Sashkin.

Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (6th ed.). england: Pearson education.

Scarborough, W. J., Lambouths III, D. L., & Holbrook, A. L. (2019). Support of workplace diversity policies: The role of race, gender, and beliefs about inequality. Social Science Research, 79, 194-210.

Schaffer, B. S. (2019). Examining reactions to workplace diversity: The role of dissimilarity–attraction in teams. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 36(1), 57-69.

Sekaran, U., & Bougie, R. (2010). Research for Business–A Skill Building Approach (5th ed.). New York, NY: John-Wiley and Sons.

Sethi, B., Vito, R., & Ongbanouekeni, V. (2021). Organizational Culture, Diversity, and Employees’ Health in Social/Human services: A Systematic Review. International Health Trends and Perspectives, 1(1), 74-95.

Setyaningrum, R. P. (2017). Relationship between servant leadership in organizational culture, organizational commitment, organizational citizenship behaviour and customer satisfaction.

Shapira-Lishchinsky, O. (2018). Ethical Aspects of Transactional, Transformational, and Authentic Leadership Styles. In International Aspects of Organizational Ethics in Educational Systems: Emerald Publishing Limited.

Shifnas, M., & Sutha, J. (2016). Impact of effective workforce diversity management on employees’ performance in construction sector.

Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions. Journal of the royal statistical society. Series B (Methodological), 36(2), 111-147.

Suharnomo, A. Y., Wahyudi, S., & Wikaningrum, T. (2017). A systematic literature review of managing workplace diversity for sustaining organizational competitive advantage. International Journal of Mechanical Engineering and Technology, 8(12), 398-406.

Tamunomiebi, M. D., & John-Eke, E. C. (2020). Workplace Diversity: Emerging Issues in Contemporary. International Journal of Academic Research in Business and Social Sciences, 10(2).

Taylor, A. S. (2015). Transformational leadership, diversity, and creativity at work: A moderated mediation model.

Uche, C. B., Onokala, U., Okundalaiye, H., George, B., & Oni, O. (2020). WORKPLACE DIVERSITY AND ORGANIZATIONAL CULTURE IN THE NIGERIA’S MARITIME INDUSTRY. UNILAG Journal of Business, 6(2), 120-138.

Walumbwa, F. O., Wu, C., & Ojode, L. A. (2004). Gender and instructional outcomes: The mediating role of leadership style. Journal of Management Development.

Whitfield, G., & Landeros, R. (2006). Supplier diversity effectiveness: does organizational culture really matter? Journal of Supply Chain Management, 42(4), 16-28.

Yang, Y.-F. (2014). Studies of transformational leadership: Evaluating two alternative models of trust and satisfaction. Psychological reports, 114(3), 740-757.