The world has been transformed into a global village as a result of fewer trade barriers between various countries. Further, there is a free flow of factors of production like capital, labor, etc. As a result, managers have to employ a workforce that is highly skilled and diversified with respect to culture, attitudes, behavior, etc. Managers should keep these diversities in mind and think of ways to deal with them. In fact, Organizational Behavior helps them in synchronizing their management style with unknown and unfamiliar cultures.
One of the major challenges those managers in contemporary organizations face is dealing with workforce diversity. Workforce diversity implies the heterogeneity of employees in an organization in terms of gender, race and ethnicity. A person who differs from the rest of the group in any form contributes to workforce diversity. Traditionally, it was believed that irrespective of their backgrounds, employees automatically adapted or adjusted to the organization they were associated with at some point of time. It was believed that employees did not carry their cultural values and lifestyle preferences to the workplace. However, it is now believed that employees do carry their culture to the workplace and that diversities in the workforce can have a positive impact on organizational performance. Hence, managers need to change their uniform approach and be more responsive to the differences in culture of the employees. For this, managers should be given special training. In the event of a failure on the part of a manager to adapt to the changing environment, an organization might experience high employee turnover, interpersonal conflicts, and ineffective communication.