Diversity of Demographic Characteristics and Work Performance in Nepalese Banking Industry

Nepal is ethnically heterogeneous and is characterized by several workplace-reflective diversities. This paper established the relationship between the diversity of demographic characteristics and the performance of employees in the Nepalese banking industry. A structured questionnaire was used as a tool of the survey among the employees of three commercial banks of Nepal and 61.11 percent of responses were received and use for data analysis purposes. The results indicate that diversity of demographic characteristics in terms of ethnic diversity, education diversity, age diversity, and gender diversity have a strong and positive relationship with work performance. The results of this study can be used to build strategies for optimizing the implementation of the diversity of demographic characteristics of employees in their work performance.

2 diversity offers many benefits to this industry. One of the key benefits would be the higher level of work performance. Hence, this study establishes the relationship between the diversity of demographic characteristics and work performance considering the banking industry of Nepal.

Conceptual Background and Hypothesis Formulation
Nepal is ethnically heterogeneous, like many other nations in the world, and is distinguished by a range of workplace-reflective diversities (SIAG, 2008). Diversity refers to the distribution among interdependent members of a work unit of personal attributes (Erhardt, 2003). It is constantly recognized and used as an important organizational resource to provide excellent customer support or to maintain a competitive advantage (Kyalo & Gachunga, 2015). According to Jackson, May, and Whitney (1995), the existence of differences between members of a social unit can be characterized as diversity. Shaw and Barrett-Power (1998) reported that as organizations around the world become more diverse in terms of their members' gender, race, ethnicity, age, national origin, and other personal characteristics, diversity is an increasingly significant factor in organizational life. Many previous studies (e.g., Rosen and Lovelace, 1991;Deluca & McDowell, 1992;Morrison, 1992) reported that the workforce today includes individuals that are distinct and share various attitudes, needs, expectations, beliefs, and behaviors of work. Emiko and Eunmi (2009) observed that workforce diversity increases the efficiency of employees and organizations. Among other variables, diversity based on some demographic characteristics such as ethnicity, education, gender, and age can affect positions, relationships, and performance of the employees (Omankhanlen & Ogaga-oghene (2011).

Relationship between Diversity of Demographic Characteristics and Work Performance
Diversity of demographic characteristics of the workforce as a resource seeks to identify, respect, and appreciate the advantages that heterogeneous workers can bring to improving company efficiency (Rasul & Rogger, 2015). It is important for enhancing work performance. Performance implies the action of doing; identifiable and observable duties, achievement, or accomplishment in the performance of duty. Work performance refers to the successful discharge of one's obligation to obtain results. It is nothing more than how well an employee meets the job's specifications (Rue and Byars, 1993). Workforce diversity is positively linked to creativity, growth, innovation, and critical thinking skills, according to Milliken andMartins (1996), Jehn, Northcraft, andNeale (1999). It is expected that good workforce diversity practices can enhance and increase employee and organizational efficiency (Adler, 1986). Since the performance of an individual employee is categorically influenced by organizational performance, the positive influences of workforce diversity at the employee level will help to improve employee cooperation (Kumar & Suresh, 2018). Fernandez (1993) argues that effective management of workforce diversity can increase the performance of employees. This is because diversity management means exploiting and using the discrepancies between the talents, concepts, and ingenuity of the employee to contribute to the accomplishment of the shared objective and to do so in a way that gives the company a competitive advantage. These kinds of literature support that there is a positive relationship between workforce diversity and work performance.

Diversity of Demographic Characteristics
Mainly, demographic characteristics such as ethnicity, education, gender, and age are considered in this study.

Ethnic Diversity
Ethnic diversity is a condition in which people from several cultural and national backgrounds are present in the area. Ethnicity is an ethnicity linked to a particular national or cultural tradition. Ethnic diversity, then, refers to various ethnic groups or cultures being present. In Nepal, many individuals identify with more than one ethnic group. This, too, is thrilling as well as difficult ways that will affect their psychological makeup and well-being. It also affects the performance of employees in the workplace. Some previous studies of Weiliang et al. (2011) and Early and Mosakowski (2000) have reported that there is a significant relationship between ethnic diversity and work performance. Based on these discussions, the following hypothesis emerged: H1. A strong and positive relationship exists between ethnic diversity and work performance.

Education Diversity
The background of education is important to the level of employability of employees. Without proper educational history, employees cannot find a job and perform well (Kyalo & Gachunga, 2015). Generally, employers also employ employees whose education, training, and experience are sufficient for employment. Glaeser, Scheinkman, and Shleifer (1995) estimated that higher levels of education among employees would contribute to higher economic growth. Benschop (2001) argued that cities with a higher percentage of employees at the tertiary education level would encourage people at all levels of education to secure higher salaries. Similarly, Daniel (2009) stated that the increased level of education could increase employee mobility rates. Thus, the performance of the individual employee would be more due to their more qualification (Kumar & Suresh, 2018). Based on these discussions, the following hypothesis emerged:

H2. A strong and positive relationship exists between education diversity and work performance. Age Diversity
Growing age diversity has become one of a modern organization's key features. Some previous studies by Williams & O'Reilly III (1998) and Wegge et al. (2008) reported that age diversity has a positive influence on the organization and work performance. It is argued that a heterogeneous age group of workers will be more imaginative, diverse, and profitable than a homogeneous age group. Considering the above discussions, the following hypothesis is proposed: H3. A strong and positive relationship exists between age diversity and work performance. Gender Diversity One of the main factors affecting work performance positively or negatively is gender diversity. Gender can be either femininity or masculinity. In the workplace, gender-based diversity creates greater individual performance. Many research studies support this argument. From the resource-based view that gender diversity gives a company a competitive advantage, McMillan-Capehart (2003) observed. Besides, according to Kochan et al. (2003), it is important to provide women with equal employment opportunities to increase the performance of employees in an organization. Based on these discussions, the following hypothesis emerged: H4. A strong and positive relationship exists between gender diversity and work performance.

Methodology
This study adopts a descriptive research design that explains descriptions of the diversity of demographic characteristics and work performance in the Nepalese banking industry. A total of 180 structured questionnaires were distributed to employees of three commercial banks (namely, Nepal Bank Limited, Prabhu Bank Limited, and Sunrise Bank Limited). Only 61.11 percent of useful questionnaires were received and use for data analysis purposes. Demographic characteristics of the respondents are presented in the following table: 48.18 The questionnaire is measured using a 5-point Likert scale, ranging from one (strongly disagree) to five (strongly agree). Descriptive statistics are used, including mean and standard deviation (S.D.), as methods of data analysis. The correlation analysis is carried out to establish a relationship between the diversity of demographic characteristics and work performance. The relationship is presented in the following research framework.  Table (2) shows the level of agreement on various statements concerning ethnic diversity and work performance in their organization.

Data Analysis and Findings 4.1 Ethnic Diversity
The results show that employees cooperate well with their colleagues of different ethnicity. They feel that different languages used to communicate in the workplace do not create conflict among the employees. Additionally, they also agree that language differences among the employees affect group formation and cohesion. Further, results reveal that their ethnic background and their working with colleagues from different ethnic backgrounds influence their ability to carry out their tasks well. However, the employees feel that they develop low self-esteem in the workplace due to their ethnic background. Table (3) shows the level of agreement on various statements about education diversity and work performance in their organization.

Education Diversity
The findings reveal that employees feel that the recruitment plan of the organization is based on their education diversity. They also agree the qualification is a discriminatory factor in the organization. Additionally, the difference in the educational background does not encourage conflict. The results also reveal that employees' educational level affects their ability to perform their task responsibility. Besides, they experience a lack of confidence due to their educational background.

Age Diversity
Table (4) shows the level of agreement on various statements with age diversity and work performance in their organization.
These results show that the expertise of high-tech and knowledge-based workers helps senior workforces develop their knowledge of recent technologies and techniques. The mentoring by older employees get benefited young employees in getting job skills. Further, team-members of different ages support problem-solving and decision-making processes. Even though there is a possibility of conflict, but the employees did not experience stress in the last 12 months due to the age diversity in their workplace.

Gender Diversity
Table (5) shows the level of agreement on various statements in terms of gender diversity and work performance in their organization. 3. Fair treatment is given to all employees, whether they are male or female 3.97 0.57 4. Opportunities for growth and advancement exist for the woman in the organization.
3.84 0.67 5. I did not experience stress in the last 12 months due to gender diversity issues in my workplace.
3.64 0.83 The results reveal that there is a fair treatment to all employees whether they are male or female. The employees agree that they have not been discriminated against by the employer while hiring and recruitment processes on a gender basis. There are opportunities and advancement possibilities for the woman in the organization. Additionally, gender diverse team has better problem solving and decision-making skills than gender homogeneous team. Further, the employees did not experience stress in the last 12 months due to the gender diversity issues in their workplace.

Work Performance
Table (6) shows the level of agreement on various statements in terms of work performance in their organization. 4.29 0.52 The results indicate that good employees' performance is important for the further growth of their organization. The employees enjoy their tasks and the division's work approach. Further, they feel that by learning more skills through courses or training, they can improve their task performance. They cooperate well with their colleagues from different ethnicity. They also perceive that the opposite gender can perform well and they enjoy working with them. The results indicate that workforce diversity affects work performance.

Correlation Analysis
The findings and discussions of the correlation analysis are presented in the following table. *Correlation is significant at the 0.05 level (2-tailed). The results show that work performance has a positive and significant correlation with all the diversity of demographic characteristics (in terms of ethnic diversity, education diversity, age diversity, and gender diversity). The results strongly suggest that this diversity of demographic characteristics is more consistent and correlated with the overall work performance in the Nepalese banking industry.

Hypotheses Testing
The coefficient of correlation between ethnic diversity and work performance is 0.72 and is significant at a level of significance of 1 percent (i.e. r = 0.72, p<0.01). It supports H1 as a result. The result indicates that the Nepalese banking industry has a substantial and positive relationship between ethnic diversity and work performance. Besides, the correlation coefficient between the diversity of education and the performance of employees is 0.81 and is significant at a 1 percent significance level ( i.e. r = 0.81, p<0.01). It supports H2 as a result. The result shows that the Nepalese banking industry has a significant and positive relationship between educational diversity 6 and work performance.
In addition, the correlation coefficient is 0.75 between age diversity and work performance and is significant at a significance level of 1 percent (i.e. r = 0.75, p<0.01). It supports H3 as a result. The result suggests that in the Nepalese banking industry, there is a strong and positive relationship between age diversity and work performance.
Finally, the coefficient of correlation between gender diversity and work performance is 0.79 and is significant at a significance level of 1 percent (i.e. r = 0.79, p<0.01). It supports H4 as a result. The outcome suggests that the Nepalese banking industry has a substantial and positive relationship between gender diversity and work performance. Accepted H2: A strong and positive relationship exists between education diversity and work performance.
Accepted H3: A strong and positive relationship exists between age diversity and work performance. Accepted H4: A strong and positive relationship exists between gender diversity and work performance. Accepted

Discussion and Conclusion
The present study established the relationship between the diversity of demographic characteristics and the performance of employees in the Nepalese banking industry. In terms of ethnicity, the study found that Nepal's banking industry has a diverse workforce. The results indicate that there is a significant relationship between ethnic diversity and the performance of employees. Therefore, the findings of Weiliang et al. (2011) and Early and Mosakowski (2000) are consistent with the results of this study. Most of the workers believe that they cooperate well with peers of various ethnic backgrounds. This suggests that, regardless of the language differences, having workers from different ethnicities does not generate conflict. Likewise, in terms of education, there is a diverse workforce in Nepal's banking industry.
The results indicate that there is a significant relationship between ethnic diversity and the performance of employees. Benschop (2001), Daniel (2009), Kyalo and Gachunga (2015), and Kumar and Suresh (2018) are consistent with the results of this study. The findings indicate that in terms of educational background, the banking industry supports diversity in its workforce composition, and this diversity does not promote conflict between workers but increases their performance as employees come into the organization bringing their various skills and experiences with them.
In addition, this research also confirms that a substantial positive relationship exists between age diversity and work performance. The results of Williams & O'Reilly III (1998) and Wegge et al. (2008) are consistent with this study's findings. The study shows that workers feel relaxed working with either older or younger staff of different ages as their performance increases. Finally, the results reveal that there is a strong positive relationship between gender diversity and work performance. The issue raised by McMillan-Capehart (2003) and Kochan et al. (2003) is confirmed by this study. A major gender equity relationship would suggest that employees would prefer to work with the opposite sex as long as they can do their tasks efficiently.