Management of Diversity: Meaning and Significance

The capacity to hire and manage personnel in varied regions and time zone differences is a significant advantage of the technological advances of the last several decades. To recruit and keep bright individuals from many origins and cultures, many organizations are adopting internal programs and policies to enhance the inclusion, promotion, and engagement of all employees. These programs aim to make the labor force more accessible to individuals from disadvantaged minorities who have been historically excluded from higher-paying employment.

Explaining Management of Diversity

Diversification emerged in the United States and Canada in the 1980s and quickly caught on elsewhere. Ronald Reagan, the 40th president of the United States, made good on an early promise to repeal restrictive legislation guaranteeing gender and racial equality and affirmative action. In a presentation, workers advocating for equal rights and affirmative action argued that United States businesses would benefit more from seeing variety management as an asset than a legal requirement. The debate prompted several studies on variety and its advantages in management. A new dimension was added to the notion due to the globalization of the economy and the proliferation of multinational corporations: variety management now encompasses the variety of the workforce across nations.

Strategies for Managing Diversity

Variety management may be broken down into two distinct categories.

Interprovincial Diversity Management

Employees of a single country, whether native-born or foreign-born, are subject to intranational variety management. Various initiatives aim to increase the number of job openings available to members of underrepresented groups or new immigrants. To increase its awareness of and respect for France's many ethnic minorities and to help those communities find employment, a French firm, for instance, may establish new policies and initiatives.

International Diversity Management

Managing a workforce made up of people from various nations is what is meant by "cross-national" or "international" variety management. As well as locals, it might include foreign nationals looking for work in your area. One such organization is a US-based multinational with offices in Canada, Korea, and China. Company variety initiatives and policies will be implemented at all of the firm's locations, including its US headquarters.

Diversity Management's Defining Features

The fundamental difficulty in managing variety across national boundaries depends on where its workers reside. The parent firm must consider the legal and cultural laws of the host nations in which it operates.

Choosing to do so on one's own

Contrary to laws enforced by punishments, variety management is an opt-in practice inside organizations. Businesses that employ people from various backgrounds and cultures start the process independently. However, no regulation nor government incentives exist to compel businesses to adopt various management strategies.

It offers Real Advantages

Companies now utilize a variety strategy to maximize the talents of all workers and gain an edge in the marketplace, as compared to the days when variety was seen as a regulatory burden. Variety in the workplace encourages the contributions of all employees, regardless of their background, color, religion, or ethnicity. To better meet the demands of their global clientele, businesses need to hire a staff that reflects their consumers' cultural backgrounds.

A Generic Definition

Variety management, in contrast to affirmative action and legislation that seek to benefit a single group, adopts a more inclusive definition of variety since the available criteria for measuring it are almost limitless. The broader definition reduces the likelihood that the dominant group or the privileged sectors of society would oppose various initiatives.

Best Methods for Managing Diversity

Incorporating these methods may help businesses keep an edge in the market while also allowing them to use the talents of their increasingly diverse staff fully. These are the most effective procedures for a business to follow.

  • Leading-edge Management's Dedication − For workforce variety to be successful, it must be embraced by the company's upper management with a common vision. Policymaking rests squarely in the hands of an organization's upper management, and their decisions about variety in the workplace may either foster or stifle that value. However well-intentioned, the efficacy of any variety strategy will be greatly improved if top management actively supports its implementation.

  • Finding Untapped Sources of Talent − When more employees go than are employed, the company's leadership must immediately start bringing in new faces. Most businesses still rely on tried-and-true methods of finding new hires, such as reaching out to graduate schools and competing businesses.

Underrepresented Groups

When hiring new employees, businesses should not limit themselves to the typical job boards and online resources but broaden their search to include people from underrepresented groups, those leaving the military, and those from different parts of the world. Employing people from a wide range of backgrounds and experiences may improve a company's ability to serve its worldwide customer base.

  • Provide a comfortable space where people may talk about concerns about a variety.

  • Organizations should facilitate the formation of resource groups where workers from similar backgrounds may meet and discuss issues freely without fear of retaliation. Minority group members may experience higher employee turnover rates due to their perception of discrimination and social exclusion in the workplace.

  • To boost employee motivation and output, it is important to provide opportunities for employees to learn from and collaborate. Employees who have achieved success in their roles may share their insights and help guide others entering the workforce.

  • Incorporate variety into own business's overall goals.

  • No company that actively promotes variety in the workplace should be embarrassed to tell the public that it employs individuals from various walks of life. To begin, management should applaud and back employees who take the initiative to participate in voluntary activities.

  • It may help generate money by sponsoring fundraising events for marginalized and disadvantaged communities. For underrepresented populations, the organization may provide internships and financial aid.


Be Aware of the Variations on Affirmative Action and Diversification As a means of leveling the playing field and ensuring that women and others from marginalized groups have equal access to opportunities. Some nations have instituted affirmative action initiatives. Even if both affirmative action and variety have benefits, organizations must draw distinctions between them. Variety calls for a proactive rather than reactive shift in organizations' operations. Hiring people from different cultural origins and belief systems may provide firm access to various work approaches, attitudes, and perspectives.

Updated on: 10-Apr-2023


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