Abstract:
In this study, the relationship between diversity management and institutional performance in local governments in Uganda’s Teso sub region was investigated, with a focus on the mediating effect of job satisfaction. To be more precise, the study evaluated the impact of diversity management on job satisfaction, assessed the impact of diversity management on institutional performance, and investigated the mediating role of job satisfaction in the relationship between diversity management and institutional performance. Based on the social exchange theory, the study was conducted. The study adopted a cross-sectional, correlational survey design that employed a quantitative approach. The study targeted a population of 157 local governments in Teso sub region. 113 local governments were sampled while 82 local governments effectively responded representing a response rate of 73%. The questionnaire was used to collect primary data which was analyzed using SPSS software version 23. The study tested for validity of the research instrument using content validity index while reliability was tested using the Cronbanchalpha coefficient on data collected from a pilot study and the instrument was found to be both valid and reliable piositing values above the 0.7 threshold. The study found that job satisfaction and diversity management had a significant effect on institutional performance. The study’s also showed that job satisfaction is strongly impacted by diversity management. The study’s findings also suggest that the association between diversity management and institutional performance is partially mediated by job satisfaction. The findings of this study indicate that diversity management significantly affects job satisfaction and performance in an organisation, and that job satisfaction partially mediates the relationship between diversity management and institutional performance. Organizations need to establish effective diversity policies, fostering leadership commitment, creating an inclusive culture and providing diversity training, as well as improving the drivers of job satisfaction to enhance institutional performance. The study used a questionnaire instrument and a cross-sectional research methodology, both of which have serious drawbacks. As a result, it is recommended that future research use a mixed methods approach and conduct longitudinal investigations.
