"EMPLOYEES’ PERCEPTIONS TOWARDS WORKPLACEDIVERSITY IN A FINANCIAL INSTITUTION OPERATING    IN THE WESTERN CAPE.    ByKAREEMAH CARELSEMini-thesis submitted in partial fulfilment of the requirements for the degree ofMAGISTER BACCALAUREUS COMMERCIIin theFACULTY OF ECONOMIC AND MANAGEMENT SCIENCESDEPARTMENT OF INDUSTRIAL PSYCHOLOGYof theUNIVERSITY OF THE WESTERN CAPENOVEMBER 2013SUPERVISOR: Dr. LEON BOSMAN DECLARATION    I declare that this thesis, entitled: “Employees? perceptions towards workplace diversity in afinancial institution operating in the Western Cape   ” is my own work and that it has not beensubmitted before for any degree or any other module, course or examination in this  Department or other departments in this or any other University and that all sources I haveused or quoted have indicated and acknowledge as complete references.----------------------------Kareemah Carelseii ABSTRACT    Although South Africa is 18 years into creating a unique diversity management strategy,individuals - directly affected by diversity in org   anisation will differ completely from thoseindividuals that have not been affected by diversity in organisations at all.The subject of  diversity management has become a contentious issue causing disagreement and argument isin the last couple of years. Many organisations find it difficult to grasp the concept ofdiversity, thus creating an opportunity for organisational development consultants andmanagement to make substantial profit (Dombai & Verwey, 1999). In the current workingenvironment and the continuous change of the organisation?s employees, the workforce hasbecome more diverse. This resulted in wider employee knowledge, skills, experience andattitude which will allow the organisation to become more competitive globally. It is ofutmost importance for organisations attract and retain staff from different cultural and diversegroup of order to improve the employee performance and the competitive advantage of theorganisation (Ferreira & Coetzee, 2010). Cumming and Worley (2009, p. 506-509) postulate that “organisational transformation – andmore specifically diversity management - is impacting on the bottom line results of theorganisation”. Organisational transformation implies radical changes in how membersperceive, think, and behave at work. They are concerned with fundamentality altering theprevailing assumptions about how the organisation function and relates to its environment.The study aimed at determining the employees? perception towards workplace diversity in afinancial institution operating in the Western Cape.More specifically, the followingquestions will be investigated in this study: What are employees? perceptions of workplacediversity? Do employees differ in their views/perception of workplace diversity based ontheir age, race, job categories, gender, job status and qualification? To what extent isworkplace diversity understood by employees? What challenges are being faced toeffectively implement workplace diversity?iii Information was gathered from both secondary and primary resources. All relevantinformation that was not obtained from publications was gathered through the use of  questionnaires that were completed by employees in the financial institution. The primary  resources in this research study used are questionnaires that were distributed to employees ina financial institution to complete. Permission  was obtained from executive management,provincial management, junior management and the human resources department to  distribute the research study questionnaire to the staff in the financial institution.Data was analysed by using structural, methodical and clear reasoning. Data analysis, involving a descriptive study in order to determine the relationship between the employees?perception towards workplace diversity in a financial institution operating in the WesternCape The descriptive study created an understanding of the relationship between theemployees? perception towards workplace diversity, for the researcher and the organisation.The Pearson method was used to determine whether there is a relationship between age, race,gender, job category and qualification and the perceptions of workplace diversity in afinancial institution. The Health Professional Council of South Africa (HPCSA)?s ethical code of ProfessionalConduct for Psychologists was strictly adhered to. Voluntary participation was critical to thestudy because of the participants? time and energy required as well as asking participants toreveal personal information to the researcher. Permission to conduct the research wasobtained from the financial institution where study was undertaken. Informed consent wasobtained from participants before starting the data gathering process.Three hundred and nine(309) respondents completed a biographical questionnaire as well as the workplace diversitysurvey in order to understand their perception and understanding of workplace diversity. Toascertain the perception of workplace diversity, respondents completed a workplace diversitysurvey. While the results of the current study reveals interesting findings, the results shouldbe interpreted with caution due to the size of the sample used which impacts thegeneralizability of the findings. iv KEY WORDSPerceptions, Workplace Diversity, Diversity Management, Employment Equity, Affirmative  Action, Culture, Reasons for Diversity Management, Occupational Level, Financial  Institution, Age, Race, Gender, Job Category, Qualifications, Challenges.     v ACKNOWLEDGEMENT    In the name of God, the Most Gracious, the Most Merciful    All thanks and praise is due to the almighty Allah, the most Beneficent, the most Merciful forgiving me the health, strength and determination to complete this thesis. It is He that I givethanks to, above all.I would like to extend my gratitude and sincere appreciation to the following people andorganisations that has supported, assisted and facilitated the completions of this research: ? To my late father and mother, Mogamat and Asa Carelse, shukran for allowing me togrow in my own shoes and your continuous love, guidance and light. I dedicate thisthesis to you. ? To my beautiful, inspirational and supportive brothers and sisters, shukran for youcontinuous love and support. Your patience and understanding throughout my studieshas not gone unnoticed. Your positivity and words of encouragement inspiredandkept me going. ? My family and friends, shukran/thank you for the understanding, love and support. ? A special thank you to Crystal Witten, Bronwen Weppernaar and Julian Goliath, youremain my strength and support, thank you for the continuous motivational talks andunderstanding and love. ? To my supervisor, Dr Leon Bosman for the assistance with the completion of mythesis. Your astute insight and guidance throughout the writing and completion of thisthesis was inspiring, invaluable and encouraging. vi ? A special thank you to Mr Karl Heslop and Ms Marieta du Plessis for the assistanceand guiding with SPSS.    ? To the organisation who permitted me to conduct the research, and to the participantsfor their cooperation.     ? Mrs Glenda and Heindrich Steyn. Thank you for offering up time to read through mythesis.vii TABLE OF CONTENT    CHAPTER 1  INTRODUCTION  CONTENT PAGE NO1.1 Introduction11.2 Statement of the problem51.3 Research Objectives 61.4 Research Hypothesis 61.5 Significance ofthe study71.6 Definition of Important concepts 8 1.6.1 Perception 81.6.2 Diversity81.6.3 Workplace diversity 81.6.4 Diversity Management91.6.5 Employment Equity Act91.6.6 Affirmative Action 91.6.7 Broad Based Black Economic Empowerment Act 91.6.8 Cultural Diversity 101.7 Delimitation of the Study101.8 Plan of the Research11CHAPTER 2LITERATURE REVIEW2.1Introduction122.2Individual Perceptions142.3Defining the concept of Diversity 15viii CONTENT PAGE NO 2.3.1Categories of Diversity15    2.3.2Dimensions of Diversity16  2.3.3The Primary and Secondary dimensions of Diversity18  2.4Background of Diversity and Diversity Management in 18South Africa2.4.1Labour Relation Act192.4.2Basic Condition of Employment Act 202.4.3The Skills Development Act202.4.4Affirmative Action212.4.5Employment Equity Act222.4.6Broad Based Black Economic Empowerment Act 232.5Necessity for Managing Diversity 252.6Diversity and Diversity Management 262.6.1Causes and Reasons for Diversity Management 282.6.2Challenges of Diversity Management 282.6.3Benefits of Diversity Management 292.7Approaches to the Challenges of Diversity312.7.1Valuing Diversity312.7.2Affirmative Action332.7.3Managing Diversity342.8Pressures facing the Modern Organisation dealing with35issues of Diversity Managementix CONTENT PAGE NO 2.8.1Pressures for participation in Decision Making36    2.8.2Pressures for Alternative Work Schedules37  2.8.3Pressures for Equity in Earnings38  2.9Influence of biographical factors on Diversity Interventions402.9.1Gender402.9.2Race412.9.3Age422.9.4Job Grade/Job Category42 2.9.5 Qualification 432.9.6Sexual Orientation 432.9.7Disability 442.10Summary of the Chapter44CHAPTER 3RESEARCH DESIGN AND METHODOLOGY3.1Introduction 463.2Research Objectives 463.3Research Hypotheses473.4Research Design 473.4.1Population 483.4.2Sample and Sample Design493.5Sample Procedure 50x CONTENT PAGE NO 3.6Method of Data Collection50    3.6.1Description of Workplace Diversity Survey51  3.6.2Reliability of the Workplace Diversity Survey51  3.6.3Validity of the Workplace Diversity Survey523.7Data Analysis Technique533.7.1Descriptive Statistics533.7.2Inferential Statistics 543.7.2.1T-test543.7.2.2ANOVA 543.8Summary of the Chapter55Chapter 4Data Presentation, Analysis and Interpretation4.1Introduction 564.2Description Statistics564.2.1Results of the Biographical questionnaires574.2.1.1Age distribution of respondents584.2.1.2Qualification distribution of respondents594.2.1.3Gender distribution of respondents604.2.1.4Race distribution of respondents614.2.1.5Marital distribution of respondents624.2.1.6Language distribution of respondents 63xi CONTENT PAGE NO 4.2.1.7Tenure distribution of respondents64    4.2.1.8Salary distribution of respondents65  4.2.1.9Status distribution of respondents66  4.2.1.10 Job Grade/Job Category distribution of respondents674.3Inferential Statistics 684.4Reliability Analysis 754.5Summary of the Chapter75 CHAPTER 5DISCUSSION, CONCLUSION AND RECOMMENDATION5.1Introduction 765.2Descriptive Results 765.3Inferential Results 775.4Implications to the organisation and the employee825.4.1Organisational Programs and Policies835.4.1.1Human Resources Training and Development845.4.1.2Management Training and Development855.4.1.3Organisational Development 855.5Communication regarding the meaning of Diversity865.5.1The Value of Diversity865.5.2Unbiased hiring systems875.5.3Identification of Critical Diversity Issues88xii CONTENT PAGE NO 5.5.4Diversity Training 88    5.5.5Leadership and Accountability88  5.6Summary of the Chapter89  5.7Limitations of the Research Study895.8Recommendation for Future Research90Reference List 92Appendix 1Letter to participants106Appendix 2 Biographical Details 107Appendix 3 Workplace Diversity Survey109xiii LIST OF TABLESTABLE NUMBER PAGE NO    Table 4.1 Descriptive statistics of the Workplace Diversity57  Survey  Table 4.2 Gender difference in perception of Workplace Diversity68Table 4.3 ANOVA: Perception of Workplace Diversity based on Race69Table 4.4 Scheffe post hoc statistics for Race70Table 4.5 ANOVA: Perception of Workplace Diversity based on Age71 Table 4.6 ANOVA: Perception of Workplace Diversity based on72Job grade or Job categoryTable 4.7 Scheffe post hoc for Job grade or Job category73Table 4.8 ANOVA: Perception of Workplace Diversity based on74 QualificationTable 4.9 Reliability of Workplace Diversity Survey75xiv LIST OF FIGURESFIGURE NUMBER PAGE NO    Figure 1The Emmanditsh dimensional model for Diversity16  Figure 2 A General Framework for Managing Diversity26  Figure 4.1 Age distribution of respondents58Figure 4.2 Qualification distribution of respondents59Figures 4.3 Gender distribution of respondents60Figure 4.4 Race distribution of respondents61Figure 4.5 Marital Status distribution of respondents62Figure 4.6 Language distribution of respondents63Figure 4.7 Tenure distribution of respondents64Figure 4.8 Salary distribution of respondents65Figure 4.9 Status distribution of respondents66Figure 4.10 Job Grade/Job Category distribution of respondents67xv "