In order to live for a positive economic development in work places, diversification is always necessary. Many organizations are responding to changes by embracing the principal of diversity. This is due to an assumption that diversity has a positive notion towards development. Diversity can therefore be looked at in different perspectives. It can equip one with legal, cultural and ethical knowledge which can be helpful in an organization.
The legal issues focuses by diversity are the some requirements for affirmative action. This was an initiative designed to afford equal employment opportunities to everyone regardless of religion, race, sex, or national origin. Individuals gained knowledge in matters concerning the legal guidelines for recruitment, selection the procedure of employment discrimination lawsuits. Although it was not without opposition, the affirmative action was consideres to have been a mechanism to empower the minorities. This made the powerful ones feel threatened (Coil and Rice, 1993).
In response to negativity of the affirmative action, the ethical perceptive came to place. This emphasized recognition, awareness, appreciation and understanding of human differences. This created an environment where each and everyone in the organizations felt valued and accepted. Diversity in the social perspective emphasizes on appreciation of differences in a proper, just and decent manner in the organization. Management education and training contribute so much in attempts to change the staff and the general public perceptions. This improves the employees’ relationships and reduces the blatant expressions of racism and sexism.
Cultural diversity brings a sustainable competitive advantage and hence the most superior performance. Modern companies are increasingly striving for racial, sexual and ethnic workforce balances, as a matter of economic and self-interest but not only for ethical and legal reasons.
For business requirement, this perspective on diversity is usually a threefold. The first one involves changing the national demographics. This requires companies’ to fill continuously the management posts with diverse candidates. These should be those who can both communicate with potential customers and effectively manage the workforce composed of staff from diverse backgrounds. Secondly, more companies in the United States are entering the global marketplace thus create the need for staff at all levels of management with different skills with dealing with the culture of each of the customer at any place. Lastly, organizations have realized that individuals with diversified backgrounds bring to the company valuable perspectives and experiences to many aspects of corporate decision making areas. This ranges from operations to marketing, human resource, communication among many others.
Organizations effectiveness benefits a great deal with diversity of the workforce. Research shows that whenever diversity of the top management team exists, there are better results in term of financial returns than a team of homogenous persons. Difference in education and training for top managers bring positive improvement on sales growth, returns on investments and adaptability (Cox and Blake, 1991). Another set of results show that diverse group members make high quality ideas, engage in problem have improved solving more suggest that companies that strive to embrace diversity in the workforce financial performance as a result. Creatively and have a high potential increased productivity. Having a heterogeneous group of employees can facilitate organizations’ future recruitment of a more talented group of minority applicants. Other researchers suggest that other companies embrace diversity for improvement in financial performance.
Depending on the organizations’ culture, diversity can hinder or help the organization’s performance depending on the existing organization culture, strategies and human resource practices. For example, in the United States banks, it was evident that racial diversity improved bank performance was experienced when innovation was key in the organization, but stalled performance when innovation was de-emphasized.