DOES ETHNO-RELIGION DIVERSITY INFLUENCE FIRMS PERFORMANCE? EVIDENCE FROM FEDERAL HEALTH INSTITUTIONS IN NIGERIA

Abstract

The purpose of this study is to investigate the effect of ethno-religion diversity on organizational
performance of Federal Health Institutions in Nigeria. It was carried out with a view to determine the
effect of ethnic diversity on team performance of healthcare workers; and as well ascertains the
relationship existing between religious diversity and employee retention. The descriptive and survey
research design was adopted for this study. With a population size of 6739, the sample size of 508 was
determined using Cochran’s formula. Data collection was through questionnaire structured in 5-point
likert scale. Data collected were presented and discussed descriptively using frequency and tables.
Hypotheses were tested using ordinal logistic regression and Product Moment Correlation Coefficient.
The study revealed that ethnic diversity has a significant negative effect on team performance (β = -
1.239, p = 0.001 < 0.05) ; there is a significant positive relationship existing between religious diversity
and employee retention (β = 0.786, p = 0.000 < 0.05). The study recommends that there should be
orientation, training and information on ethnic diversity and inclusivity at all levels by management to
help employees understand how they can take steps to create a more inclusive environment at work and to
co-operate with one another irrespective of ethnic affiliations or differences; employees should be given
an opportunity to practice their religion and engage in religious activities that both contribute positively
to the individual and the organization, this can be achieved by ensuring flexibility in job schedules and
designated areas for religious practices; and organizations should eliminate structures that engender
gender discrimination by formulating laws and policies that promote equity in recruitment, placement,
promotion and succession planning irrespective of ethic, religion or gender in other to encourage
creativity, innovation and competitiveness in the organization.