Assessing the relationship between diversified workforce and reward on employees' performance in the organisation: An exploratory study of private organisations in Bangladesh

Managers and scholars agree that proper financial reward systems and diversity in the workforce can play a positive influence on individual employee's performance. However, this assertion remains largely untested on the workforce in a country like Bangladesh. To examine this implied relationship under the developing country's workforce perspective, this study investigated the impact of financial rewards and diversified workforce on employees' performance in a sample of 300 male and female respondents from various private organisations in Dhaka city, capital of Bangladesh. This study formulated two hypotheses and analysed the data by using exploratory factor analysis, confirmatory factor analysis and structural equation modelling. Surprisingly results from this research indicated that the majority of employees believed that financial reward practices by the firms had a significant effect on their performance followed by diversified workforce culture in their workplace. The outcome of this research shows a comprehensively integrated framework for academics and mangers to understand the several dimensions that are influencing employees' performance in the organisation. The present study makes useful additions to the current knowledge of employee's performance which was tested through rewards and diversity variables under the workforce environment of a developing country.