Impact of Workforce Diversity on Organisational Effectiveness: A Case of Volta River Authority, Accra

Abstract

Workforce diversity has become a critical organisational issue in the era of globalisation, presenting both opportunities for innovation and challenges for management (Nyako, 2017; Sanyang & Othman, 2019). Effective management of a diverse workforce is essential for enhancing organisational effectiveness; however, its impact remains inconsistent and context-dependent, particularly in emerging economies such as Ghana. This study assessed the impact of workforce diversity on organisational effectiveness at the Volta River Authority (VRA) in Accra, Ghana. A descriptive, cross-sectional survey design was employed, using a structured questionnaire administered to 150 VRA employees in Accra, selected via purposive and convenience sampling. Data were analysed using descriptive statistics and regression analysis via SPSS version 20. The study found a significant positive relationship between workforce diversity and organisational effectiveness (R = .465, p < .05), with workforce diversity explaining 21.6% of the variance in organisational effectiveness. VRA demonstrated a commitment to diversity management, though challenges included difficulties in blending diverse cultures, an outmoded diversity policy, and ensuring equal treatment. Respondents agreed that management addresses diversity challenges and that people from different ethnic groups are treated with respect. Workforce diversity, when effectively managed, has a positive and significant impact on organisational effectiveness. Organisations should prioritise updating diversity policies, providing relevant training, and fostering an inclusive culture to harness the benefits of a diverse workforce and mitigate associated challenges.