Gender Diversity in Management Positions and Organizational Performance: A Review of Literature

Document Type : Research Paper


Department of Management, College of Business and Economics, Bahir Dar University, Bahir Dar, Ethiopia


In this term paper, diversity in management positions and organizational performance is analyzed using gender diversity as a mediating role. The analysis is done based on the review of related literature. An organization’s success and competitiveness depends upon its ability to embrace diversity and realize the benefits. The success and failure of an organization is also linked with its leadership compositions. Diversity provides organizations with the ability to compete in global markets. Simply recognizing diversity in an organization helps link the variety of talents within the organization. Diversity is a reality created by individuals and groups from a broad spectrum of demographic and philosophical differences. Gender diversity and organizational performance are positively related. Gender diversity provides the organization strong financial performance, intellectual capital, reputation and corporate governance, smooth communication and wider customer base, creativity and innovation, and effective leadership. While women play a vital role for the performance of an organization, their representation in management positions are hindered by global challenges, personal challenges, perception gaps, culture, lack of network and mentors, and scrutiny. To enhance the representation of women in the management positions; ensuring leadership commitment and transparency, formulating formal management position policies, selection quota, recruitment from outside, designing talent development and promotion program, mentoring and networking, providing infrastructure support service, creating awareness, etc are some of the remedies.