Impact of organizational diversity on safety culture and performance in PT. UVW Indonesia

https://doi.org/10.35912/jomabs.v1i4.2317
Published: Jul 30, 2024

Abstract:

Purpose: This study examined the influence of organizational diversity on safety culture and performance in PT. UVW is a global chemical company based in Indonesia. Utilizing the Cultural Intelligence (CQ) framework, Social Identity Theory, and Resource-Based View (RBV), this study investigates how different employee backgrounds affect safety outcomes.

Method: By employing an approach that integrates qualitative interviews with quantitative KPI analysis, this study demonstrates that diversity improves safety culture through various perspectives and innovative solutions.

Nonetheless, to maximize these benefits, it is essential to address challenges, such as communication barriers and conflicts.

Result: The findings highlight that effective diversity management, inclusive communication, comprehensive training, and strong leadership within a diverse organizational demography of gender, age, work tenure, and educational background are vital for cultivating a positive safety culture. The research emphasizes that when strategically managed, organizational diversity can be a significant asset, enhancing safety performance and creating a safer and more efficient workplace. This research offers practical insights for multinational companies seeking to leverage diversity while overcoming the associated challenges to boost safety culture and performance.

Keywords:
1. organizational diversity
2. safety culture
3. cultural intelligence
4. resource-based view
5. leadership
Authors:
Katami Nasarasiddi
Institut Teknologi Bandung, Indonesia
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How to Cite
Nasarasiddi, K. (2024). Impact of organizational diversity on safety culture and performance in PT. UVW Indonesia. Journal of Multidisciplinary Academic Business Studies, 1(4), 801–818. https://doi.org/10.35912/jomabs.v1i4.2317
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Issue & Section
Vol. 1 No. 4 (2024): August
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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  1. Afriyani, N., Indrayani, I., Indrawan, M. G., Wibisono, C., & Ngaliman, N. (2023). The influence of training, discipline, and innovation on the performance of members of the Regional National Crafts Council (Dekranasda) in Tanjungpinang City: A quantitative study. Journal of Multidisciplinary Academic Business Studies, 1(1), 53-70.
  2. Bagga, S. K., Gera, S., & Haque, S. N. (2023). The mediating role of organizational culture: Transformational leadership and change management in virtual teams. Asia Pacific Management Review, 28(2), 120-131.
  3. Cox, T. (1994). Cultural Diversity in Organizations: Theory, Research, and Practice. Retrieved from San Francisco:
  4. Earley, C., & Ang, S. (2003). Cultural Intelligence: Individual Interactions Across Cultures. Stanford: Stanford University Press.
  5. Earley, C., & Mosakowski, E. (2004). Cultural Intelligence: Harvard Business Review.
  6. Ghorbani, S., & Khanachah, S. N. (2020). Investigating the reasons for failures and delays in R&D projects with the project management approach. Annals of Management and Organization Research, 1(4), 319-334.
  7. Herring, C. (2009). Does diversity pay? Race, gender, and the business case for diversity. American Sociological Review, 2(74), 208-224.
  8. Hofmann, D. A., & Morgeson, F. P. (1999). Why differences make a difference: A field study of diversity, conflict, and performance in workgroups. Administrative Science Quarterly, 4(44), 741-763.
  9. Hossain, A., Khatun, M., & Shanjabin, S. (2023). Impact of person-job fit and person-organization fit on employee engagement: Moderating role of supervisor support. Annals of Human Resource Management Research, 3(2), 97-114.
  10. Jehn, K. A., Northcraft, G. B., & Neale, M. A. (1999). Why differences make a difference: A field study of diversity, conflict, and performance in workgroups. Administrative Science Quarterly, 4(44), 741-763.
  11. Kochan, T., Bezrukova, K., Ely, R., Jackson, S., & Joshi, A. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management, 1(42), 3-21.
  12. Kunze, F., Boehm, S. A., & Bruch, H. (2011). Age diversity, age discrimination climate and performance consequences—a cross organizational study. Journal of Organizational Behavior, 2(32), 264-290.
  13. Martins, F. J. M. L. L. (1996). Searching for common threads: Understanding the multiple effects of diversity in organizational groups.
  14. Maznevski, M. L. (1994). Understanding Our Differences: Performance in Decision-Making Groups with Diverse Members. Human Relations, 5(47), 531-552.
  15. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. Human Resources Management: Gaining a Competitive Advantage. New York: McGraw Hill LLC.
  16. Nosike, C., & Egbunike, C. (2021). Customers’ Loyalty and Sales Performance of Dangote Cement Product in Awka, Anambra State. Annals of Management and Organization Research, 3(2), 115-128.
  17. Page, S. E. (2007). The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies. Retrieved from
  18. Pless, N. M., & Maak, T. (2004). Building an inclusive diversity culture: Principles, processes and practice. Journal of Business Ethics, 2(54), 129-147.
  19. Richard, O. C., Barnett, T., Dwyer, S., & Chadwick, K. (2004). Cultural diversity in management, firm performance, and the moderating role of entrepreneurial orientation dimensions. Academy of Management Journal, 2(47), 255-266.
  20. Roberson, Q. M., & Park, H. J. (2007). Examining the link between diversity and firm performance: The effects of diversity reputation and leader racial diversity. Group & Organization Management, 5(32), 548-568.
  21. Schein, E. H. (1990). Organizational culture. American Psychologist. Cambridge: US: American Psycological Association.
  22. Schnippers, D. v. K. M. C. (2007). Work Group Diversity. Annual Review of Psychology, 1(58), 515-541.
  23. Shore, L. M., Randel, A. E., Chung, B. G., Dean, M. A., Ehrhart, K. H., & Singh, G. (2011). Inclusion and diversity in work groups: A review and model for future research. Journal of Management, 4(37), 1262-1289.
  24. Thomas, D. A., & Ely, R. J. (1996). Making Differences Matter: A New Paradigm for Managing Diversity. Harvard Business Review, 5(74), 79-90.
  25. Zahedy, M. R., Jafari, S. A., & Ramezan, M. (2021). Examining the quality of work life: empirical testing indicators in the public organisation. Annals of Human Resource Management Research, 1(2), 99-111.
  26. Zairina, S., Wibisono, C., Ngaliman, N., Indrayani, I., & Satriawan, B. (2023). The influence of product quality, prices, and promotions on buyer decisions in the Small and Medium industry handicrafts of Tanjungpinang City. Journal of Multidisciplinary Academic Business Studies, 1(1), 13-25.
  27. Zohar, D. (1980). Safety climate in industrial organizations: Theoritical and applied implications. Journal of Applied Psychology, 1(65), 96-102.