Top Management Team Diversity, Involvement Culture and Performance of Commercial Banks in Kenya

The study of the effect of Top Management Team (TMT) diversity on organization performance produces mixed results. This study investigated the effect of involvement culture on the relationship between TMT diversity and organization performance. The target respondents were the Heads of Human Resources in all the commercial banks in Kenya and out of the 43 targeted banks, 33 responded. The questionnaire was the maintool of data collection and the data was analyzed using regression analyses. Past studies have shown that the question as to whether diversity leads to organization performance depends of the performance measures used. Since past studies have shown mixed results on the effect of TMT diversity on organization performance, the study usedinvolvement culture as a moderating variable and found that it had a significant effect on the relationship between TMT diversity and organization performance. As a result, since most organizations have diversity at the TMT, they need to make deliberate efforts and invest in good management practices which enhance organization performance. Future studies can find out which other moderating variables have apositive effect on the relationship between TMT diversity and organizationperformance.Key Words: Top Management Team (TMT) Diversity, Involvement culture, Organization Performanc

Top Management Team, Diversity Management Strategies and Performance Of Commercial Banks In Kenya

Diversity is an increasingly important factor in organizational life as organizations worldwide become more diverse in terms of gender, race, ethnicity, age and other characteristics. There have been different findings as to whether Top Management Team (TMT) diversity affects the performance of organizations. Some researchers argue that diverse TMT have the potential to result in strategic decision making, greater creativity, more innovation and the ability to reach more and different types of customers. Others however arge that demographic variation signals variations in underlying and invisible cognitive processes which can be a source of strive. Effective human resources strategies recognize that organizations can benefit from Top Management Team diversity by creating an environment that attracts people from diverse background and recruits the best staff regardless of ethnicity, gender or age. As a result, this study sought to find out the effect of Diversity Management Strategies on the relationship between TMT diversity and the performance of commercial banks in Kenya. All the Heads of Human Resources in the 43 commercial banks operating as at December 2010 were targeted and 33 responded. The main tool of data collection was the questionnaire while the data was analyzed using regression analyses. The study found that diversity management strategies had a significant effect on the relationship between TMT diversity and organization performance. Diversity Management strategies create and maintain an environment that naturally allows all individuals to reach their full potential in pursuit of organizational objectives for competitive advantage. Diversity management strategies will ensure that the interests of the minorities in commercial banks in Kenya are well taken care ofKey Words: Top Management Team (TMT) Diversity, Diversity Management Strategies, Organization Performanc

Top Management Team Diversity, Quality of Decisions and Performance of Commercial Banks in Kenya

ABSTRACT There have been different findings as to whether Top Management Tea