Management of Diversity in Organization

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Management of Diversity in Organization
Organizations have been becoming increasingly diverse in terms of gender, race, ethnicity, and nationality. This diversity brings substantial potential benefits such as better decision making, greater creativity and innovation, and more successful marketing to different types of customers. But, increasing cultural differences within a workforce also bring potential costs in higher turnovers, interpersonal conflicts, and communicational breakdowns. The utilities of diversity training and the essential managerial skills required for effectively managing diversity will also be discussed.

Diversity Management vs. Organizational Performance
Diversity of skills among individual members will
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Research tends to support this relationship. Kanter's study of innovation in organizations revealed that the most innovative companies deliberately establish heterogeneous teams to "create a marketplace of ideas, recognizing that a multiplicity of points of view needs to be brought to bear on a problem". Kanter also specifically noted that companies high on innovation had done a better job than most on eradicating racism, sexism, and classism, in addition, tended to employ more women and racioethnic minorities than less innovative companies.

Research by Charlene J. Nemeth found that minority views can stimulate consideration of non-obvious alternatives in task groups. Nemeth found that the "minority" groups adopted multiple strategies and identified more solutions than the "majority" groups. She concluded that the groups exposed to minority views were more creative than the more homogeneous, majority groups. She further concluded that persistent exposure to minority viewpoints stimulates creative thought processes. Another experiment compared the creativity of teams that were homogeneous on a series of attitude measures against teams with heterogeneous attitudes. Problem solution creativity was judged on originality and practicality. Results indicated that as long as the team members had similar ability levels, the heterogeneous teams were more creative than the homogeneous ones. If
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