IMPACT OF WORKFORCE DIVERSITY ON ORGANIZATIONAL PERFORMANCE MEDIATED BY ORGANIZATIONAL COMMITMENT

Abstract

This study investigates the influence of Workforce Diversity (WFD) on Organizational Performance (OP) in Higher Education Institutions (HEIs) in Pakistan, with a particular emphasis on the mediating role of Organizational Commitment (OC). As universities face increasingly diverse faculty and administrative teams, understanding how workforce diversity contributes to institutional outcomes has become vital. Drawing upon theoretical frameworks such as the Resource-Based View (RBV) and Herzberg’s Two-Factor Theory, the study examines how demographic, cultural, and professional differences within the workforce shape employee commitment and ultimately affect institutional performance. Using a quantitative research design and data collected from academic and administrative staff across multiple HEIs, Structural Equation Modeling (SEM) via Smart PLS was employed to test the proposed relationships. The findings reveal that WFD positively impacts OC, which in turn significantly enhances OP. However, the direct relationship between WFD and OP is less proved, suggesting that OC plays a crucial mediating role. These perceptions contribute to the existing body of knowledge by highlighting the strategic value of managing diversity to foster commitment and improve organizational outcomes in the higher education sector of Pakistan. The study offers practical implications for institutional policymakers and leaders to implement inclusive diversity management strategies that strengthen commitment and drive performance.