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Diversity in the workplace encompasses a range of elements
Companies need to embrace diversity and look for ways to become inclusive organizations because diversity has the potential to yield greater work productivity and competitive advantages (SHRM 1995). Stephen Butler, co-chair of the Business-Higher Education Forum, believes diversity is an invaluable competitive asset (Robinson 2002). Managing diversity is a key component of effective people management in the workplace (Black Enterprise 2001).
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Diversity is beneficial to both associates and employers. Although associates are interdependent in the workplace, respecting individual differences can increase productivity. Diversity in the workplace can reduce lawsuits and increase marketing opportunities, recruitment, creativity, and business image (Esty et al. 1995). In an era when flexibility and creativity are keys to competitiveness, diversity is critical for an organization’s success. Also, the consequences (loss of time and money) should not be overlooked.
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The world's increasing globalization requires more interaction among people from diverse backgrounds. People no longer live and work in an insular environment; they are now part of a worldwide economy competing within a global framework. For this reason, profit and non-profit organizations need to become more diversified to remain competitive. Maximizing and capitalizing on workplace diversity is an important issue for management.
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Supervisors and managers need to recognize the ways in which the workplace is changing and evolving. Managing diversity is a significant organizational challenge, so managerial skills must adapt to accommodate a multicultural work environment.