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Effects of Diversity on Employee Performance and Organizational Success of International Oil CompaniesIntroductionProfitability is one of the major areas of focus in corporate organizations because of its relationship with aspects of sustainability. Organizations aim at making profits to ensure positive cash flows necessary to meet such obligations as salaries, payments to suppliers and repayment of debt.Human resources in any organization are responsible for the execution of organization’s strategy and realization of many of its objectives, including profitability. Therefore, effective management of human resources in an organization is essential to secure optimal output which will then guarantee organizational success.The ability to recruit and hire and manage employees from different cultural backgrounds, are some of the ways of ensuring competent human resource base that can contribute to the organization’s success. The geocentric approach to global staffing appreciates the need for organizations to be diverse and suggests that employee diversity could be related to organizational outcomes.High employee turnover rate creates a gap left by the departing employees even if the organization could recruit and hire professionals to replace them. Similarly, highs costs of recruitment, hiring, and training to fill the gaps left by departing employees add to the time and cost needed for organizational synchronization which in turn would have negative effects on incoming cash, partly through affected operations. This suggests the need for effective human resource management.International oil companies may rely on successful and effective human resource management to achieve a competitive edge and realize organizational goals, financial objectives and sustainability. In the recent past, the gender diversity issue in the oil companies of the world has attracted considerable attention from interested parties as women seek to increase their representation in the sector. Important to note, the embracement of diversity in the organizational setting is identified as a a strategy that goes a long way in fostering the performance of employees and thus, bolster organizational success. In this respect, this study seeks to investigate the effects of diversity on employee performance and organizational success in international oil companies, using a case study of BP Oil Company.Literature ReviewThe geocentric approach to global staffing that focuses on the employees’ competencies instead of their countries of origin (Mathis, et al., 2016) is one of the available options for international companies. The global staffing approach has the advantage of developing a pool of competent and motivated personnel that can spearhead organizational goals (Mathis, et al., 2016). Diversity of the workforce is one of the outcomes of the staffing approach, and its effects can moderate the competence and motivation of the developed workforce. In this respect, the inclusion of employees from different ethnic, religious, and gender backgrounds is integral towards promoting the development of the workforce in a way that improves the organization’s competitive edge.The geocentric approach to staffing can develop a workforce with culturally competent employees to ensure cost effectiveness (Pride, Hunges, & Kapoor, 2013). Diversity that emerges from the geocentric approach to staffing also develops a positive image of an entity that can attract, retain, and motivate competent personnel. A culturally competent workforce, which the geocentric staffing approach strives to achieve, also has the benefits of flexibility, creativity, multi-linguistic competencies, and problem-solving abilities (Pride, Hunges, & Kapoor, 2013) that are expected to have positive effects on an organization’s dynamics and performance. Important to note the diversity of the workforce enhances the element of productivity in an organization and thus, bolster the effectiveness and efficiency of human resources management.The advantages of diverse human resource bases, however, relies on the individual competencies of the employees that moderate the economic measures such as cost, flexibility, creativity, and problem-solving abilities. Hiring of experts with poor cultural competencies is likely to undermine the advantages. Highly performing employees who lack cultural awareness and sensitivity, for example, may force the employers to incur training cost for competence development. Culture-based conflict that can spill to the relationship between an organization and its external stakeholder is another example of challenges that can emerge when an organization has a diverse workforce that lacks the necessary competencies (Pride, Hunges, & Kapoor, 2013). For instance, the notion that women are less competent than men in performing duties and tasks is a cultural-based conflict that undermines the realization of gender diversity in the organizational settings. Furthermore, adaptability challenges in a diverse workforce may also undermine employees’ output and motivation (Pree, 2016).Cultural shock is likely to occur among employees with poor cross-cultural competence and the time and energy that such employees may need to take to absorb the shock is likely to be reflected in their performance. Focus on adjustment is likely to reduce output energy and time into reduced performance that translates to organizational output and profitability. Similarly, effects of cultural differences in communication are likely to affect organizational dynamics and undermine operations (Pree, 2016).The Resource-Based Theory offers a basis for understanding the possible effects of diversity on a workforce. Organizations that can attract and retain scarce but valuable resources, per the theory, can realize a competitive advantage over other organization and can experience higher levels of performance (Gomez-Mejia, Berrone, & Franco-Santos, 2014). Importantly, the resource-based theory underlines the need for organizations to put in place strategic resource. Essentially, strategic resources go a long way in enhancing the competitive edge of an organization. Thus, the uniqueness of an organization’s human resources has the potential of enhancing its competitive advantage amid the heightening rivalry in the in the various industrial sectors.A valuable resource, based on the theory, is one that benefits an organization’s efficiency and effectiveness and does not include a workforce that suffers from negative effects of cultural incompetency (Gomez-Mejia, Berrone, & Franco-Santos, 2014). Consequently, organizations should diversify their scopes of recruitment for the identification f outstanding personnel and the geocentric approach to staffing is appropriate for international organizations (Mathis, et al., 2016). The approach should also ensure the development of a culturally competent human resource base for the benefits of workforce diversity that defines employees’ satisfaction, individual output, and collective output (Pride, Hunges, & Kapoor, 2013). Diversity, therefore and based on its management, can have positive or negative effects on organizations’ employees and performance.Empirical literature supports the theoretical relationships among workforce diversity, employees’ satisfaction, and organizational performance. Perceptions of effective diversity training, which indicates developed competencies for operating in a diverse environment, has been associated with employee satisfaction and organizational commitment that indicates increased high levels of organizational performance (Yap, et al., 2010). Effective management of diversity has also been associated with employee empowerment that is incident to individual and organizational performance (Wolfson & Kraiger, 2011). Tang and Lee (2014) also identify positive effects of employee satisfaction on stakeholders’ returns.Problem Statement Aims, and ObjectivesThe theoretical and empirical literature identifies the need for diversity in the workplace and the benefits of diversity should it be managed effectively (Mathis, et al., 2016; Pride, Hunges, & Kapoor, 2013; Wolfson & Kraiger, 2011). The benefits of diversity to such aspects as employee satisfaction and organizational performance, therefore, are conditional. Dearth knowledge, especially empirical, also exists on the relationship between diversity and its possible effects on employee satisfaction and organizational performance in international oil companies. An understanding of the actual effects of the geocentric approach to employee satisfaction and organizational performance, therefore, is necessary to justify the cost of using the approach to develop a diverse and effective workforce.The study aims at bridging the knowledge gap by investigating the effects of diversity on employee satisfaction and organizational performance of international oil companies, using BP oil company as a subject for the research. The following are the specific objectives of the study.•To determine the dimensions and levels of diversity at BP oil company•To investigate the relationship between diversity and employee satisfaction at BP oil company•To investigate the relationship between diversity and organizational performance, measured through revenues and net profits, at BP Oil Company•To investigate the relationship between employee satisfaction and organizational performance at BP oil companyThe following research questions will be explored to pursue the objectives.•What are the dimensions of employee diversity at BP?•What is the level of diversity at BP?•Does a relationship exist between diversity and employee satisfaction at BP?•Does a relationship exist between diversity and both revenues and profits of BP?Research MethodologyThe study seeks to investigate the effects of employee diversity on employees’ performance and organizational success among international oil companies using BP Oil Company. This chapter will present the proposed research methodology and includes a discussion of the proposed research method, design, data collection tools, and rationale for their selection. The proposed data collection and analysis procedures are also discussed.Research Method and DesignThe post-positivist worldview of research that acknowledges causal effect relationships (Creswell, 2014), therefore, is consistent with the scope of the study and forms the basis of the study’s method. Research problems under the paradigm focus on the causes of observed features such as performance at individual and group levels with organizations. The paradigm also involves the reduction of ideas to narrow concepts whose frameworks can be investigated through addressing specific research questions or hypotheses. The paradigm also provides for the reliance on objective measures that can be determined through observations (Creswell, 2014). Creswell’s association of the paradigm with the quantitative research method informs the decision to use the quantitative research method for the study (Creswell, 2014).Strengths of the quantitative research methods such as objectivity and ability (Houser, 2014) to infer research findings to a population also informs the study whose implications should be inferred to the larger population of the BP Oil Company as well as the population of oil companies. A higher level of control of the researcher, which can ensure focus of a study and accuracy of measures, is another advantage of the quantitative research method that justifies its proposed use in the study (Houser, 2014).The quantitative method’s survey design is proposed for the study. The design involves the collection of data in their natural forms, and its suitability for the study and advantages informs its selection. The survey design is a quantitative design, and this identifies its suitability as one of the applicable design for the post-positivist philosophy to the study (Creswell, 2014).Advantages of the design over other quantitative design, and based on the nature of the proposed study also informs the selection. In collecting data in their natural forms, due to its non-experimental scope than does not involve treatment of research participants, the design is simple and is not liable to legal and ethical implications of other quantitative designs. The survey design is also fast and cost-cost effective, especially because of its ability to use readily available data or to collect data over a short period (Creswell, 2014). The limited time for completing the proposed research, about nine weeks, and financial constraints that require the use of readily available data, therefore, identify the feasibility of the survey design, unlike the alternative quantitative research designs.Data Collection ToolsExisting data, from, managements’ databases will be used for the study. The databases are expected to contain employees’ demographic factors, such as nationality, age, gender, the highest level of education, and the number of years of employees’ experience in their respective positions in the organization. Similarly, the databases are expected to contain data on employees’ performance indicators, such as input hours, output levels, effectiveness, and efficiency. In addition, the databases are expected to have data on performance indicators, such as profitability, revenue levels, and stakeholders’ satisfaction.The use of readily available data has the advantages of lower cost of data collection, shorter duration of data collection, and less energy in data collection because data can be obtained upon request. Collecting data, especially on a longitudinal basis, for example, requires longer periods, especially in cases of longitudinal studies.Validity and Reliability of the Data Collection ToolsThe proposed data that the targeted institutions will have collected identifies a high level of validity and reliability. Organizations record information for managerial and other purposes and organizational interests in the data guarantee accuracy. Data on employee performance, such as appraisal results, are generated for the understanding of employees’ ability to promote organizational objectives and are, therefore, expected to be accurate for informing managerial decisions. Data on demographic factors are also observable and verifiable, aspects that indicate their accuracy. Corporate organizations, however, have legal obligations to publish their audited accounts, including revenues and profitability, and such accounts, unless in cases of fraud, are accurate.The study will consider retrospective data. Data, therefore, will be free from performance and measurement bias due to the desire to meet pre-empted outcomes. The collected data, therefore, will represent the exact measures of diversity and performance of the investigated entities to establish reliability and replicability.Data Collection ProceduresThe BP Oil Company has been chosen at random among the largest global oil companies. Contact will be made with the company’s head office for permission to use the company for the study. The contact will communicate the scope of the study and its possible implications to the company, including the possible benefits of the developed knowledge to company’s management.A sample will be generated from the company’s production centres and communication, on the need for participation, will be made to the unit heads of the sampled units and the need to participate in the study. The researcher will make the communication that the obtained consent from the head office will support. The necessary data, including the time frame for inclusion, will also be communicated. Discussions will be made with the heads of the relevant centres for the necessary time for submission of the data.Proposed Data Analysis ApproachQuantitative data analysis methods, using statistical tools and software, will be used to analyse the data. Descriptive statistics, inferential statistics on the diversity measures across production centres, and regression analysis on the relationship between diversity measures and both performance and unit success will be used. Data will be analysed for each centre before a consideration of the entire data for the same descriptive and inferential analyses.Sampling (Population Profile, Sampling Theories, and Sample Size)Production centres of the BP oil company form the population of the study. The company has outlined its production centres all of which will be considered for the study. Each production centre is expected to have data on its employees’ demographic characteristics, its production levels, its revenues from production, and its net profit from operations. Productions centres that will not have data on the variables, for over a three-year period, will be excluded from the study.The stratified random sampling approach will be used for the study. The sampling strategy involves the segmentation of research participants into homogeneous groups from which random samples are generated. Geographical location of the production centres will be the basis for segmentation and aims at capturing cultural orientations and associated cultural diversity within each geographical area. The geographical location as a base for stratification is further consistent with the location of the company’s production centres across different countries.The stratified random sampling strategy has the advantages of ensuring a representative sample because of its ability to sample participants from each homogeneous segment of the target population (Houser, 2014). The sampling of centres across geographical areas ensures representativeness of host cultures from which foreign cultures will define diversity. Cultural differences across countries and regions, and their effects on cross cultural interactions could also moderate the effects of diversity, and the stratified sampling approach will ensure evaluation of different host cultures. The random scope of the sampling approach also has the advantage of representative samples within production centres, due to its ability to eliminate sampling bias (Houser, 2014).A sample size of seven will be used for the study and the focus on regions of location of production units informs this. Bop has about ten principal areas of production and selecting seven from these identifies a sufficient sample size.AccessibilityAccessibility of the targeted data, subject to the consent of the targeted organization, is guaranteed. The study targets data that are fundamental to the operations and management of organizations and their units. Organizations and their units, therefore, are expected to collect data on the variables and even consolidate them. Demographic data, data on employee performance and data on stakeholder satisfaction are important to human resource management and are expected to be updated, continuously for informing management. Data on revenues and profitability that are elements of financial statements, however, are also statutory requirements. BP Oil Company, therefore, is expected to be developing and keeping data on the variables at its production centres and possibly at its head office. Consent to the access of data on the variables, which will be obtained from the company’s head office, will guarantee accessibility.Ethical IssuesAutonomy, capacity, beneficence, and anonymity are the major ethical issues that are likely to emerge during the research process. The doctrine of autonomy requires researchers to respect participants’ rights to self-determination (Wiles, 2012). Participation in a study is supposed to be based on the informed consent of the research participants, and the study will ensure this by obtaining a written informed consent form from the head office of BP Oil Company.The responsible officers will be informed on the scope of the study and possible implications of participation. Once consent is offered, it will be reduced to writing, and the responsible BP officer will sign the written consent form. Heads of the sampled production centres will also be informed of their right and authority to decide on the delivery of the required data from their centre. The right to the authority over the data, however, will cease once the researcher receives the data unless the informed consent is withdrawn from the company’s head office. Research participants should also have the capacity to make legally binding decisions (Wiles, 2012) and the nature of BP as an incorporated company and the assumed capacity of its managers indicates its capacity to participate in the study.The ethical concept of beneficence requires the consideration of the welfare of research participants (Wiles, 2012) and the possible benefits that BP could derive from the results and recommendations of the study establish morality. BP will have access to the outcomes of the study whose implications could inform the company’s strategic approach to human resource management through diversity. Ethical research also requires anonymity, an ethical doctrine that prohibits non-disclosure of personally identifiable information on research participants (Wiles, 2012). The identity of the studies company is important to the authenticity of the study’s findings, and consultations will be made with relevant stakeholders, including BP Oil Company for the possibility of disclosing the company’s identity.SignificanceThe Study is significant to the management of BP Oil Company who may find the results and recommendations important to their staffing approach. The quantitative scope of the study and the established levels of validity and reliability that develop confidence in the generalizability of the study’s findings and recommendations for practice also establish the significance of the study to other international oil companies. The study also seeks to improve literature on the relationship between diversity and employee’s performance and organizational success and this identifies its significance to academicians and researchers in the field of management.DeliverablesA written report, is the deliverable of the study. The report will include the analysed data, a discussion of the analysis results, possible limitations of the study, recommendations for practice, and recommendations for future research. The data that will be used for the study will also be delivered separately and will include a copy of data set for each production centre and a copy of the integrated data for all of the sampled production centre. All data analysis results, as developed during the data analysis stage, will also be included in a separate document for authentication of the data analysis process.Required ResourcesThe study requires readily available resources and is likely to induce limited financial cost. Financial cost for communicating with the management of the BP Oil Company, at both the head office and the production centre levels, is the major resource needed for the data collection stage. The resource, however, is likely to limit if the communication is achieved through telephone or email communication channels. A computerized device and software for data analysis are the other major resources for the study, required for the data analysis stage, and their availability means that no cost will be incurred. Human resource for documentation and editing, and printing papers for publication are other resources that will be required, but they are also available at no extra cost.Implementation Time TableThe following timeline will be used to implement the study in the next nine weeks.Figure 1: Implementation timelineReference listCreswell, J 2014, Research design: Qualitative, quantitative, and mixed methods approaches, 4th Ed, SAGE, London.Gomez-Mejia, L, Berrone, P, & Franco-Santos, M 2014, Compensation and organizational performance: Theory, research, and practice, Routledge, New York.Houser, R 2014, Counseling and educational research: Evaluation and application, 3rd Ed, SAGE Publications, London.Mathis, R, Jackson, J, Valentine, S, & Meglich, P 2016, Human resource management, 15th Ed, Cengage Learning, Burlington.Pree, M 2016, ‘Appreciate diversity,’ In Rao, M (Ed), 21 success sutras for CEOs: How global CEOs overcome leadership challenges in turbulent times to build good to great organizations, n.p., Motivational Press, Carlsbad.Pride, W, Hunges, R, & Kapoor, J 2013, Business, 12th Ed, Cengage Learning, Burlington.Tang, C & Lee, J 2014, ‘Employee satisfaction and long-run shareholder returns,’ The service Industries Journal, Vol. 34, No. 11, pp. 1167-1183.Wiles, R 2012, What are qualitative research ethics? 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