Abstract
Diversity brings in different perspectives and helps to strengthen the quality of decision-making. Hence, diversity is of importance at all levels of organizations, and more so at the board level as the decisions made therein affect the long-term success of any organization. Hence, adopting a qualitative research approach in combination with a hybrid of exploratory and descriptive research methods the objective of the chapter is to enhance the understanding and deliberate on the significance of board-level diversity as a strategy to enhance organizational performance in the context of the public sector with a focus on Namibia. According to the study findings, there is moderate diversity management at the board level, which needs to be increased so as to aid in better quality decision-making to improve performance. Based on the analysis and findings there are recommendations to the Ministry of Public Enterprises (MPEs) which is the appointing authority.
TopIntroduction
Board diversity is defined as differences in the composition of boards of directors, and these differences can be clustered in two ways: directly visible differences, such as nationality, age, gender, and ethnic background, and less visible differences, such as educational, functional, and occupational background (Kang, 2007 cited, Jyoti, Teerooven & Vanisha, 2011). Moreover, earlier research has characterized Organizational performance in terms of financial and physical capital returns (such as profit on investments, and profit from share values). While the contrary, organizational performance, is defined as the efficiency with which the organization's intellectual capital resources add value (Rampling, 2019). As a result, the research focuses on the importance of board diversity and how leaders can make everyone aware of and attentive to the needs and differences of others, as well as how they may benefit from a diverse workforce. It will also involve an examination of how different enterprises handle board diversity as part of a strategic plan to meet the organization’s mission and objectives. In recent times, corporate board diversity has received much political and media coverage. Six nations have implemented binding quotas to encourage gender diversity on corporate boards since 2008, others, on the other hand, have non-binding quotas or are debating the legal terms (Smith, 2014 as cited by Kowalsky, 2020). With the new trends and new paradigms, there has been a shift from an undefined social Europe to more democracy at work.
Research has been conducted on the subject of the influence of men and women on company leadership. This is frequently promoted as a means of achieving greater social equity or diversifying the director skill pool. This research will look at diversity from both a similarities and differences standpoint. The study will use the social exchange theory to correlate the research objective with the theory. Interactions among individuals or members of certain organizations, communities, or networks that can be considered social exchanges make up a large component of social life (Cook, Cheshire, & Gerbasi, 2020) thus, the adoption of the social exchange theory by this study. The social exchange theory suggests that performance is likely to be effective in a diverse work group as long as the organization manages diversity efficiently (Avery & McKay, 2010). Hence the objective of this chapter is to examine the board diversity to enhance the organizational performance of Public Enterprises in Namibia.
Key Terms in this Chapter
Develop: Grow progress, unfold, or evolve through a process of evolution, natural growth, differentiation, or through an environment that is conducive.
Stakeholder: A person with an interest or concern in something, especially in an organization or institution. A stakeholder is a member of a type of organization or system in which a member or participant is seen as having an interest in its success.
Accountability: The fact or condition of being accountable. It is an obligation to accept responsibility. Management, for example, needs to care about using public money to the best possible advantage.
Management: Any act by an individual member on the behalf of a group, with the intent to get the group to better meet its goals. It includes acts or activities or processes of looking after and making decisions about something.
Public Sector: The business of supplying a commodity (electricity or gas) or service (such as education, banking, transportation) to any or all members of a community or a service rendered in the public interest, especially by governmental units.
Government: The organization, machinery, or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it. It is a political system by which a body of people is administered and regulated.
Impact: To affect, the effect of coming into contact with a thing or person; the force exerted by a new idea, concept, technology, or ideology, the impression made by an idea, cultural movement, or social group, it is to drive or press (an object) firmly into (another object, thing, etc.) to have an impact or strong effect (on).
Effectiveness: Effectiveness implies the skillful use of resources or energy or industry to accomplish desired results with little waste of effort.
Strategy: The science and art of employing, a careful plan or method, the art of devising or employing plans or stratagems toward a goal, an adaptation or complex of adaptations (as of behavior, metabolism, or structure) that serves or appears to serve an important function in achieving evolutionary success. It is methods or plans chosen to bring about a desired future, achievement of a goal, or solution to a problem.
Organization: A group of persons organized for some end or work; an organized structure or whole for a business or administrative concern united and constructed for a particular end or a body of administrative officials, as of a political party, a government department, etc. It is an act or process of organizing; a structure through which individuals cooperate systematically to conduct business and/or the administrative personnel of such a structure.
Challenges: Something that by its nature or character serves as a call to make a special effort, a demand to explain, justify, or difficulty in an undertaking that is stimulating to one engaged in it.
Competence: Refers to the capacity of individuals/ employees to act in a wide variety of situations. It’s their education, skills, experience, energy, and attitudes that will make or break the relationships with the customers and the products or services that are provided.
Decision-Making: A rational and logical process of choosing the best alternative or course of action among the available options.