Diversity is the term that describes the demographic and cultural characteristics of an organization's labor force, customers, competitors, or population at large. Such characteristics are usually noted when they have consequential outcomes and affect the ability of groups to work effectively together. Diversity creates positive outcomes for organizations when recognition and acceptance of differences among people lead to a larger pool of qualified workers, more creative problem solving, more productive use of human resources, and better understanding of markets and competitors. Negative outcomes, however, can result if diversity leads to misunderstanding, distorted communication, destructive competition, political maneuvering, favoritism, discrimination, and intolerance.(Baron, 2008) Which set of outcomes is most likely depends on the extent to which people in organizations welcome diversity, learn from it, and know how to manage it effectively.
Conceptual Overview
Several factors account for growing organizational diversity: (a) the increased importance of globalization for profitability and long-term survival in many organizations; (b) changes in the structure of how work gets done; and (c) the changing composition of the labor force in many countries due to an aging population, immigration, and the restructuring of the economy. There are many dimensions on which people meaningfully differ: race, ethnicity, citizenship, gender, class, family structure, sexual orientation, physical abilities, age, industry, occupation, function, education, and so on. In many cases, the intersectionality or combination of these characteristics has more effect on inter-group relations than any one characteristic by itself. Important differences are those that have consequential effects on access to and experiences in jobs and careers, and in life opportunities and rewards.(Jost, 2007) What constitutes a meaningful and important group distinction, however, varies a great deal across countries and time periods. In the United States, race/ethnicity and gender have dominated the discussions of diversity in organizations, although the trends in recent years have been to broaden the definitions and lens of diversity. In other developed countries, more attention has been given to gender issues, although concerns with citizenship and immigration have become more prevalent as policies regulating guest workers, refugees, and migration flows have increased in these countries. (Baron, 2008)In other parts of the world, class and caste, religion, differences in language, and even educational attainment have defined inter-group relations. In whatever context, the markers of difference create distinctions among groups that have consequences for access to jobs, status, and political power.
The existence of diversity among groups of people stems from differences in culture and structural relations that affect perceptions, feelings, and attitudes. Culture includes, among other things, language, custom, conventions, and norms of behavior. Structure refers to the relationships between groups of people, often defined in terms of class, status, and power.(Tajfel, 2006) People bring with them into organizations the patterns of behavior and thinking, the networks, the social pressures, the habits, and strategies of action that they learned before joining the organization. Furthermore, people are shaped by the perceptions, attitudes, and behaviors of others in regard to them. Although many organizations in the past have tried to homogenize behaviors and attitudes ...