Why Is Diversity in the Workplace of High Importance to the Organization – Literature review Example

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The paper “ Why Is Diversity in the Workplace of High Importance to the Organization? ”   is a motivating version of a literature review on human resources. Because of globalization, the workforce is increasingly becoming diverse. This has led to the increased interaction of people from different cultures, beliefs and cultural backgrounds than before. People are no longer working in a skewed market place but are part of a global economy participating in every aspect of economic development competitively. Because of globalization, diversity is a prerequisite for every organization for it to be competitive and innovative in an ever-changing and competitive market.

This has become a vital tool for managers nowadays. According to Kelli et al (2000), managing diversity is a significant organizational challenge in which managers much learn managerial skills needed in the multicultural working environment. Every player in an organization should learn to appreciate multicultural differences in colleagues and customers so that everyone is treated with dignity and respect. According to Esty, et. al (1995), diversity is celebrating, understanding, accepting, valuing, and acknowledging diversity among people with respect to class, mental ability, ethnicity, gender, physical and, race, sexual orientation, spiritual practice, age, and public assistance status. Society for human resource management (SHRM), argues that organizations should focus on diversity, ways and means of becoming diverse this is because diversity has the ability and potential offering greater yields and competitive advantage in an organization.

On the other hand, Black Enterprise (2001), argues that managing and valuing diversity is an essential component of managing employees which can increase productivity in a given organization if managed well but also can spell disaster for an organization if mismanaged. Kelli et al (2000), argue that there are a number of ways in which diversity can increase the competitive advantage of an organization.

This includes increased productivity this is because people in a diverse environment feel valued, respected and included in the organization. They further argue that people working in a diverse environment helps in the retention of business. This is because many companies they do business with pay greater attention to demographics of companies, and many have taken a leading role in rejecting companies which are less diverse in nature. Esty, et al (1995) points out that an organization composed of diverse employee group provides an insight into the thoughts of a wider range of customers.

Also, diversity gives an organization an opportunity to employ energetic and smart people from a wide pool of employees as compared to an organization that employs less diverse employees. When an organization employs a diverse workforce, its public image improves. This is because where there are people, there is communication. During this exchange of information, potential employees may discuss any given company, how they treat their employees and the employee composition of that organization.

Kelli, et al (2000), argue that employees who work in a diverse environment have their moral increase due to an increase ambient working environment. They further point out that creativity is heightened in settings where employees come from different backgrounds and different life dimensions. Because of dissenting views, which diverse workforce hold, decision making is improved because they have to reach a consensus before moving forward. Valuing and managing diversity is a crucial factor in managing people effectively, this may improve workforce productivity.  

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