Importance of Diversity for a Business

Diversity in business is a situation whereby operations are set up in a manner that allows a balance in the workforce. The employees are usually pooled from various backgrounds without discriminating against sex, race or ethnicity amongst other backgrounds. The management is usually better placed to serve a wide range of customers while operating under diverse conditions. Diversity in business is better explained by the term inclusion (Judi 2003), whereby an organization makes use of a number of its appropriate diversities. It must be utilized effectively in order for the monetary benefits to be realized. It would be pointless for an organization to pursue the accomplishment of diversity if it will not be effectively utilized to for the purpose of contributing to the profitability of the business. In many states, the law prohibits employees from hiring on the basis of race or ethnicity. However, it is usually for the good of the organization due to the benefits derived from the practice.

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The accomplishment of business objectives largely depends on the ability of the business to integrate employees from diverse cultural backgrounds. It increases an organization’s strength especially since organizations in the contemporary global market usually deal with varying cultures and customers. The most significant reason for a business to embrace diversity is to ensure that creativity is maintained. People from diverse cultural backgrounds usually approach problems from different perspectives. A combination of creative ideas usually leads to the realization of a practical solution (Scott 2007). Diversity is also important in raising the productivity of an organization through bringing personnel from many cultures to work towards the accomplishment of a common goal. Different cultures have different skills. For example Chinese employees are known for their quantitative skills, while British and Germans are high performers in high ranking positions of organizations (Dessler 2004). Combining these cultural backgrounds therefore increases an organization’s productivity.

Attitude is paramount to effective performance in the workplace. People from different cultures have different attitudes towards work. Combining the best attitudes through diversity generates a strong workforce that is capable of achieving the organization’s targets (Pellet 2004). More over, globalization of business operations makes it necessary for organizations to engage people from different cultural backgrounds who have varying language skills. For example, an American multinational company offering services directly to the consumers may require employees who understand local languages in order to compete effectively with local organizations that offer similar products. It helps in marketing an organization’s products abroad, and in situations that need in-depth explanations regarding the use and application of products.

Diversity in a business enables it to understand the perceptions of people regarding its products. This understanding helps in marketing research and designing the most appropriate approach to use in establishing how and for whom to produce (Moore 1999). It helps in maintaining consumer oriented production through information acquired from different cultures. Under normal circumstances for example, certain products may be superior in the American market, but they could market better in another country if a little change could be made on them. Diversity therefore is important in helping the organization to determine the manner in which to differentiate products in order for them to fit in all markets. It also helps in the accomplishment of the desired transformation in a business in order to make it more competitive. This leads to flexibility in an organization. Conservative production methods are replaced with innovative methods that are more effective in meeting the needs of consumers. A business that sells its products to various cultures needs to adopt diversity.


  1. Dessler, G. 2004. Management principles and practices for tomorrow’s leaders. Upper Saddle River: Prentice Hall.
  2. Judi B. 2003. Developing Receiver-Centered Communication in Diverse Organizations. Listening Professional, 2, 1, 5-25
  3. Moore, S. 1999. Understanding and Managing Diversity among Groups at Work:  key issues for Organizational Training and Development. Journal of European Industrial Training, 23, 208-217
  4. Pellet, J. 2004. Driving diversity:  diverse work forces make for better companies. Chief Executive, 198, 48-55.
  5. Scott P. 2007. The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies. Princeton, N.J.: Princeton University Press.



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