Critically evaluate the argument that diversity management is good for Essay

Critically evaluate the argument that diversity management is good for organizations, but damaging for employees - Essay Example In forming this culture it is vital for the management to involve diversity initiatives in the business activities of the company. The top management should also promote diversity in the workplace as goal of the company. Diversity is about portraying a culture that recognizes personal needs and contributions. However diversity by nature is perceived to bring complexity in the workplace. This negatively affects the employees due the various cultures. According to Klarsfeld (2010, 126) Employees are bound to feel at ease when working with people from the same cultural background. Diversity management in the organization is good as it promotes maximum production compared to those organizations which do not employ diversity. Diversity as a practice starts and ends with the individual. Today diversity involves the all business practices driven towards creating trust and improving workplace. In order to maintain properly managed diversity in the organization it involves knowing workers ind ividually not as part of a particular culture. Organizations with multicultural diversity tend to portray high levels of engagement and the organization is able to outperform others. The outer-performance is in terms of stock price, turnover rate, stock price, revenue growth, net income and financial growth. According to Mor Barak (2010, 250), one of the important assumptions of diversity management is the strength of relationship between business assets. These include the business systems, practices, goals and the people involved. The compatibility of this interdependent relations as well as its well functioning affects the business operation. The effects are experienced in organizations image, profitability and stability which occur both in short-term or long-term. As suggested by Thomas (2006, 244), in diversity management, the organization needs to have an equal focus on all areas of management. Diversity in management has various benefits to the organization. They include: Easy entry to a changing market situation: Diversification in an organization implies incorporation of different practices. This means that the organization is less likely to have difficulties in adapting to changes. Working under diverse conditions enables the management to be able to handle various situations without fear. Diversity also means exploring various areas of the market therefore the management is aware of the market making its entrance easier. In diversity, employees are handled equally and this gives them the motivation to contribute the organizations development. High quality customer service: Diversification in an organization promotes enhanced customer services. The presence of individuals from different cultural background ensures that the organization can serve different customers and satisfy their needs. In diversity management since workers are used to working and relating with diverse cultural backgrounds, it becomes possible for them to handle different customers . Large-scale business transformation: transformation ensures business operation is more agile, rapid and lean. Diversity management ensures business operations are well transformed. It also ensure accountability in business transformation in large-scale. The diversity in the organization promotes modernization of business operations in business trans