Diversity and Its Impact on Companies

Read this article to explore the various impacts of diversity in the workplace. Be attentive to the graph showing the relationship between diversity and competitive advantage. The text assesses the advantages that diversity creates, such as cost advantages, resource acquisition, marketing, system flexibility, creativity, and problem-solving. It also introduces aligning strategy and human resource management using the resource-based view.

Introduction

  • How does diversity impact companies and the workforce?

Due to trends in globalization and increasing ethnic and gender diversity, it is imperative that employers learn how to manage cultural differences and individual work attitudes. As the labor force becomes more diverse there are both opportunities and challenges to managing employees in a diverse work climate. Opportunities include gaining a competitive edge by embracing change in the marketplace and the labor force. Challenges include effectively managing employees with different attitudes, values, and beliefs, in addition to avoiding liability when leadership handles various work situations improperly.

Source: OpenStax, https://openstax.org/books/organizational-behavior/pages/5-3-diversity-and-its-impact-on-companies
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