The Diversity management is the planned

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Management

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Diversity: benefits and issues of diversity in the
workplace
Workplace diversity is a complex and wide topic. Every organisation faces problems
to manage diversified people in organisation. Management of the workforce diversity proved
to be the essential tool to maximise the effectiveness of the organisation. Diversity
management in organisation has become significant issues for both organisation as well as
government. Diversity management is the planned and systematic commitment by the
organisation to retain, recruit, reward, as well as promote the heterogeneous mix of the
employees. Several theories of diversity management have also evolved over time. Business
organisations are also required to have the diverse workforce in order to effectively meet the
needs of the rapidly growing demand of customers. Valuable and unique information also
supports the group performance and processes. Creation of diversity is all about creating the
balance workforce. In the recent business environment, the major challenge faced by business
organisation is the increasing importance of diversity. It directly or indirectly impact the
organisation productivity also.
In the words of Davis, Frolova & Callahan (2016) policies related to diversity
management is essential in order to create a better working environment. In the recent time,
corporate culture is the essential element that helps in recruiting the best and talented
employees for the organisation. In every organisation, several aspects such as company
rituals and individual performances see culture. Author has stated that the diversity is directly
linked to the equal opportunity among the organisational employees. It has rightly stated that
the organisational diversity put the direct impact on the workplace that causes categorization
and self categorization. Several researchers have stated that the diversity in workplace can be
enhance and improve in the overall functioning of the group. As compare to this, it is
analysed that when diversity is not recognised or appreciated in organisation, it tends to
create the hindrance in the cohesiveness of the group. Therefore, when there will be proper
corporate culture, it will serves the inclusion and diversity needs of workplace. IN this way, it
is clear that the workforce inclusion and diversity is the major factor that helps in improving
the performance of organisation.
Lozano & Escrich (2017) has stated that diversity is the existence of employees from
varied cultural and background. It includes several cultural factors such as gender, race,
colour, age, ethnicity, as well as physical ability. Diversity management means enabling the

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entire diversified employees to perform their duty with the full potential. It also provides the
competitive advantage to organisation if managed successfully. The major benefit that an
organisation achieves from the diversity management is the higher innovation, creativity, as
well as greater success in the market. Rao & Tilt (2016) as also identified that the
organisation having diverse workforce can better understand the needs of the customers. In
the current time, every organisation requires the diversified employees so that it can work as
per the needs of different customers. However, it is not possible for every organisation to
effective manage the diversified employees at the organisation.
From the report, it is found that the several Australian workforces are taking the
wrong approach regarding diversity across each level of the organisation. It is also stated that
when gender element is taken into account, Australia has invested lots of effort and time in
order to create the diverse workforce. In spite of this, they have failed to achieve the desired
outcome. Besides this, discrimination is also seen as the major issue that is admitted by very
few employers. In Australian organisations, still a gap is seen between the Indigenous as well
as non-indigenous employment. According to the Diversity Council Australia, several
organisations stuck in several ways by acting on the personal preference. It is because
organisations do not enough knowledge regarding diversity.
Guillaume, Dawson, Otaye‐Ebede, Woods & West (2017) identified that workforce
diversity offers various disadvantages. The major disadvantage is the increase in cost of
training. for providing training related to diversity, organisation is required to come across
high cost that is incurred in programs, seminars, as well as lectures. These types of training
programmes teach employees how to accept the different thoughts, ideas as well as
personalities of others. Another disadvantage of the workplace diversity is the increment in
conflict. When different cultural background works in the organisation, it is obvious that
conflict occurs. It also tends to produce the negative dynamics such as stereotyping,
ethnocentrism and cultural clashes. In this regard, Markey, Gollan, Hodkinson, Chouraqua &
Veersma (2018) stated that if conflict will be managed properly in the organisation, it will
lead to improvement in the productivity as well as enhance the performance. Increment in the
absenteeism and labour turnover also proved to be major disadvantage by having diversified
workforce. Employees who see themselves as the valued members in the organisation are
involved, hard working as well as creative. In spite of this, there are organisations who tend
to ignore the importance and existence of the workforce diversity. Due to this, sometimes
conflict occurs.