The Impact Of Employees’ Perceptions Of Diversity Management Practices On Psychological Capital: A Case Of Bed And Breakfast Establishments In Matjhabeng Local Municipality In The Free State Province

Abstract

Several studies have been conducted on diversity management practices and psychological capital as separate independent studies in the hospitality sector. These studies, however, have focused more on large establishments and in the developed economies context, thus making the insights from such studies inadequate regarding small establishments, such as B&Bs in developing contexts, such as South Africa. This gap creates an avenue for further research, therefore, this study attempted at closing this gap by focusing, in one single study, how diversity management practices and psychological capital concepts correlate among employees within the B&B establishments in a developing context. The objective of the study was, therefore, to determine how employees’ perceived diversity management practices influence their psychological capital. Drawing on a cross-sectional case study design, data was conveniently collected from 100 employees employed in seventy-seven (77) bed and breakfast establishments within the Matjhabeng Local Municipality in the Free State Province of South Africa, using a structured 6-point Likert scale questionnaire. Data was analysed using descriptive statistics, exploratory factor analysis, Cronbach Alpha Coefficient, Kolmogorov-Smirnov (K-S) test, Shapiro-Wilk test and the Spearman Correlations. The key findings from the empirical study are: employees know and understand diversity; bed and breakfast establishments utilize diversity management practices; employees’ perceptions of diversity management practices are all positive and that these perceived diversity management practices have a positive effect on the psychological capital of the bed and breakfast establishment employees. From the study, it is recommended that for bed and breakfast establishments to have a sustainable future, they should learn and understand diversity as this will help them value cultural differences and effectively manage a diverse workforce.