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.

Conclusions: Organizational diversity, when managed strategically with inclusive leadership and comprehensive training, serves as a valuable asset that strengthens safety culture and enhances organizational performance.

Limitations: This study was limited to PT. UVW’s manufacturing site in Indonesia and relied on self-reported data, which may restrict the generalizability of results.

Contribution: The study provides practical insights for multinational companies on leveraging diversity to improve safety outcomes and theoretical contributions by applying CQ, Social Identity Theory, and RBV to workplace safety research.

Keywords:
1. Cultural Intelligence
2. Leadership
3. Organizational Diversity
4. Resource-Based View
5. Safety Culture
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), 245–260. 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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    Davis, J. J. (2023). Emotional Intelligence: A Missing Category in Discipleship Training and Spiritual Formation? Journal of Spiritual Formation and Soul Care, 16(2), 252-269. doi:https://doi.org/10.1177/19397909231188367

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    Schein, E. H. (1990). Organizational culture. American Psychologist. Cambridge: US: American Psycological Association.

    Shore, L. M., & Chung, B. G. (2022). Inclusive leadership: How leaders sustain or discourage work group inclusion. Group & organization management, 47(4), 723-754. doi:https://doi.org/10.1177/1059601121999580

    Van Knippenberg, D., Nishii, L. H., & Dwertmann, D. J. (2020). Synergy from diversity: Managing team diversity to enhance performance. Behavioral Science & Policy, 6(1), 75-92. doi:https://doi.org/10.1177/237946152000600108

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  1. Aririguzoh, S. (2022). Communication competencies, culture and SDGs: effective processes to cross-cultural communication. Humanities and Social Sciences Communications, 9(1), 96. doi:https://doi.org/10.1057/s41599-022-01109-4
  2. Casey, T., Griffin, M. A., Flatau Harrison, H., & Neal, A. (2017). Safety climate and culture: Integrating psychological and systems perspectives. Journal of occupational health psychology, 22(3), 341. doi:https://psycnet.apa.org/doi/10.1037/ocp0000072
  3. Cox, T. (1994). Cultural Diversity in Organizations: Theory, Research, and Practice. Retrieved from San Francisco:
  4. Curcuruto, M., Parker, S. K., & Griffin, M. A. (2019). Proactivity towards workplace safety improvement: An investigation of its motivational drivers and organizational outcomes. European Journal of Work and Organizational Psychology, 28(2), 221-238. doi:https://doi.org/10.1080/1359432X.2019.1572115
  5. Davis, J. J. (2023). Emotional Intelligence: A Missing Category in Discipleship Training and Spiritual Formation? Journal of Spiritual Formation and Soul Care, 16(2), 252-269. doi:https://doi.org/10.1177/19397909231188367
  6. Earley, C., & Mosakowski, E. (2004). Cultural Intelligence: Harvard Business Review.
  7. 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. doi:https://doi.org/10.35912/amor.v1i4.553
  8. Gomez, L. E., & Bernet, P. (2019). Diversity improves performance and outcomes. Journal of the National Medical Association, 111(4), 383-392. doi:https://doi.org/10.1016/j.jnma.2019.01.006
  9. 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. doi:https://doi.org/10.1002/job.2040
  10. Guttman, O. T., Lazzara, E. H., Keebler, J. R., Webster, K. L., Gisick, L. M., & Baker, A. L. (2021). Dissecting communication barriers in healthcare: a path to enhancing communication resiliency, reliability, and patient safety. 17(8), e1465-e1471. doi:https://DOI:10.1097/PTS.0000000000000541
  11. Hajro, A., Gibson, C. B., & Pudelko, M. (2017). Knowledge exchange processes in multicultural teams: Linking organizational diversity climates to teams’ effectiveness. Academy of Management Journal, 60(1), 345-372. doi:https://doi.org/10.5465/amj.2014.0442
  12. Hossain, A., Khatun, M., & Shanjabin, S. (2024). 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. doi:https://doi.org/10.35912/ahrmr.v3i2.1885
  13. Kaur Bagga, S., 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. doi:https://doi.org/10.1016/j.apmrv.2022.07.003
  14. Khan, I., & Usman, M. (2024). Unleashing innovative work behavior in the workplace through leader’s cultural intelligence: Mediating role of psychological safety. International Journal of Cross Cultural Management, 14705958251377283. doi:https://doi.org/10.1177/14705958251377283
  15. Maddux, W. W., Lu, J. G., Affinito, S. J., & Galinsky, A. D. (2021). Multicultural experiences: A systematic review and new theoretical framework. Academy of Management Annals, 15(2), 345-376. doi:https://doi.org/10.5465/annals.2019.0138
  16. Martins, F. J. M. L. L. (1996). Searching for common threads: Understanding the multiple effects of diversity in organizational groups.
  17. Mello, A. L., & Rentsch, J. R. (2015). Cognitive diversity in teams: A multidisciplinary review. Small Group Research, 46(6), 623-658. doi:https://doi.org/10.1177/1046496415602558
  18. 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. doi:https://doi.org/10.35912/amor.v3i2.1160
  19. Patel, T., & Salih, A. (2018). Cultural intelligence: A dynamic and interactional framework. International Studies of Management & Organization, 48(4), 358-385. doi:https://doi.org/10.1080/00208825.2018.1504474
  20. Saeeda, H., Ovais Ahmad, M., & Gustavsson, T. (2024). Navigating social debt and its link with technical debt in large-scale agile software development projects. Software Quality Journal, 32(4), 1581-1613. doi:https://doi.org/10.1007/s11219-024-09688-y
  21. Saefullah, A., Radjawane, L. E., Sutrisno, E., Santoso, A., & Kuraesin, A. D. (2023). Access through road in Pahing Hamlet, Sukadana Village, Kuningan Regency as a means of improving the community's economy. International Journal of Financial, Accounting, and Management, 5(3), 407-420. doi:https://doi.org/10.35912/ijfam.v5i3.1.1929
  22. Schein, E. H. (1990). Organizational culture. American Psychologist. Cambridge: US: American Psycological Association.
  23. Shore, L. M., & Chung, B. G. (2022). Inclusive leadership: How leaders sustain or discourage work group inclusion. Group & organization management, 47(4), 723-754. doi:https://doi.org/10.1177/1059601121999580
  24. Van Knippenberg, D., Nishii, L. H., & Dwertmann, D. J. (2020). Synergy from diversity: Managing team diversity to enhance performance. Behavioral Science & Policy, 6(1), 75-92. doi:https://doi.org/10.1177/237946152000600108
  25. Zarzycka, E., & Krasodomska, J. (2022). Non-financial key performance indicators: what determines the differences in the quality and quantity of the disclosures? Journal of Applied Accounting Research, 23(1), 139-162. doi:https://doi.org/10.1108/JAAR-02-2021-0036
  26. Zohar, D. (1980). Safety climate in industrial organizations: Theoritical and applied implications. Journal of Applied Psychology, 1(65), 96-102.