Problem: Organizational diversity, when managed effectively, has many benefits for organizations. In general, effectively managed diversity programs contribute to an organization's ability to achieve and maintain a competitive advantage. Diversity in teams at all levels can be helpful in solving complex problems because heterogeneous teams integrate multiple perspectives. This benefit applies to the upper-echelon management team as well as to project teams, such as new-product-development teams, much lower in the organization. Not only can the diversity help resolve complex problems, but it also better mirrors U.S. society. Thus, it signals to potential associates and potential customers that the organization understands and effectively uses diversity. As a result, the organization has a larger pool of candidates for potential associates from which it can select the best. In addition, the organization is likely to have a larger potential market because of its understanding of the products and services desired by a diverse marketplace. Having a diverse organization that reflects the demographic composition of U.S. society is smart business.
Critical Thinking Questions
1. How does organizational diversity contribute to an organization's competitive advantage?
2. What actions are required to create diversity in an organization, particularly in one that has homogeneous membership at present?
3. How does diversity in an organization affect its strategy.