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Homework 1 Diversity and its benefits.
As is known the most accelerating trend in the world, the globalization seems to tighten
any geographical gaps, in the sense that the outstanding development of technology have brought
people closer together (Kawar, 2012). This means that people from different parts of the world
with different cultures as well as ethnics are living, working and communicating together (2012).
And then, this creates the diversity in the workplace where people are similar or different form
each other regarding to gender, race, age, education, religion, physical abilities, especially
culture. However, the first question has arisen is whether having diverse workplace and
managing it effectively will offer the benefit for the company. To clarify, the page would like to
point out the importance of diversity and diversity management practices within the umbrella
organization in not only building up internal structure but also developing the performance.
According to the textbook of Organizational Behavior written by Bauer and Erdogan, the
diversity will bring out the myriad of benefits. In term of them, there are six main reasons to
foster the diverse workforce: higher creativity in decision-making, better understanding and
service of customer, more employees satisfaction, and higher stock prices, limiting litigation
expenses, and increasing the corporation performance. First of all, why is the diversity prevalent
in the workplace? The key word lies in the differences in the customs, race, gender, beliefs that
shapes the various ideas and perspectives the workforce can hold. In this sense, instead of being
approached the problem in the customary manner, the problem with various alternatives are
solved in many novel ways. Therefore, the diversity is essential to innovation and growth.
According to the study conducted by Forbes, 85 per cent of 321 companies with more than $500
million revenue agreed or strongly agreed that diversity is key to driving innovation in the

workplace (Tencer, 2011). Even more, according to the study of Hoffman & Maier (1961) and
Wood (1987), the sexual-balanced groups have more positive interactions then either
predominantly male or predominantly female. What is more, it emphasizes the different-culturebackgrounds employees are the significant factor helping the company to understand deeply the
customer needs. The multi-national company (MNCs) are the representative example for
focusing on the diversity management. In fact, the insights, skills, and experiences of employees
have developed as member of various culture identify are considered as potential valuable
resources. In terms of that, the company can exploit to define the markets, strategies, and
business methods (Kochan, et al., 2003). By way of that, the company would save the cost to
find out the custom and habit of the new market. Furthermore, using the knowledge from native
workforces can make the MNCs compete quickly and strongly with local firms. In addition,
managing diversity effectively contributes to the increase of employees satisfaction which
restricts the rate of turnover. Another point is that companies with a good alliances are often
overstated and the prerequisite for any investments. Besides, when the policy are increasingly
stricter to ensure the fairness and diminish the discrimination, the company are dealing with the
daunting task of managing diversity they have. Unless managing the diversity effectively, the
company could face the issue of paying costly for litigations, even the companys reputation is
suffered.
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For many reasons mentioned above, it is recommended that effective diversity
management will leverage the organizational benefits. However, the flowing-up question is
posed that how the company can manage the diversity effectively. According to the research of
Kochan, to be successful in working and gaining the benefits form the diversity requires a

sustained, systematic approach and long-term commitment. In the scale of business, the company
should reconsider the diversity as not issue to address, conversely, is the opportunity for both of
company and employees. In fact, emphasizing a learning and integration perspective in a manner
facilitate the companys out-performance. Moreover, ensure senior management commitment
and accountability is also a thing to manage the diversity effectively (Guidroz, Kotrba, &
Denison). In fact, senior manager need to reflect their commitment and responsibilities for the
fairness by implementing the strict policies about the diversity. Apart from those practices, they
should create the training program in which emphasize the importance of diversity in order to
help people understand the opportunities of diversity for not only the organization but also the
individual. Not only have that, the training program improved the skill as well as the employees
respect to the culture and cognition of each other. Another ideas is pointed out that the manager
should take more analytical approach in performing their roles. In this suggestion, survey data
and analyses is vital to understand the diversity within organization, and then to monitor it
effectively.
In conclusion, it is justifiable to believe that the diversity and managing the diverse
workforce is crucial for the improvement of organization. However, as mentioned above, it
requires the sustainable, long-term and accountable commitment for not only the manager but
also the employees to mitigate the individual conflicts or stereotypes.

References
Bauer, T. and Erdogan, B. Organizational Behavior. (2009). Version 1.1. New York, NY: Flat
World Knowledge.
Guidroz, A., Kotrba, L., & Denison, D. (n.d.). Workplace diverity: Is National or orgainzational
curlture predominat? Linkage: Linkage.
Hoffman, L., & Maier, N. (1961). Quality and acceptance of problem solution by members of
homogeneous and heterogeneous groups. Journal of abnormal and Social Psychology, 61,
401-407.
Kawar, T. I. (2012, March). Cros-cultural Differences in Mangament. International Journal of
Business and Social Science, 3, 105-111.
Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., . . . Thomas, D. (2003). The
effects of diveristy on business performance: Report of the diversity research network.
Wiley InterScience.
Tencer, D. (2011, September 28). Forbes survey: workplace diversity key to innovation. The
Huffington Post Canada. Retrieved from
http://www.huffingtonpost.ca/2011/07/29/workplace-diversityinnovation_n_913214.html
Wood, W. (1987). Meta-analytic review of sex differences in group performance. Psychological
Bulletin, 102, 53-71.
Yee, L., & Barsh, J. (2011). Unlocking the full potential of women in the US economy. Retrieved
from

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