Globalization and Workforce Diversity

Workplace diversity is an offshoot of multiculturalism. The changing composition of the labor force influences the primary organizational activities in several ways. Rapid globalization and immigration of labor force has resulted in organizational workplace to become a global village.

The blurring of country boundaries in business activities has resulted in differences in race, ethnicity, culture, religion, language, nation of origin, gender, sexual orientation, age, physical abilities, occupation, and class. These differences influence working relationships among employees. Today’s labor pool is dramatically different than in the past. No longer dominated by a homogenous group of population, available talent is now overwhelmingly represented by people from a vast array of backgrounds and life experiences.

Hence, there is increased awareness that organizations must learn to value the different backgrounds and perspectives that a diverse workforce can bring to organizational performance. By directly addressing diversity issues, companies are more likely to capitalize on the many benefits associated with a diverse workforce.

Having a diverse workforce results in many benefit that affect improve the organizational performance. The degree of diversity can influence the way work is being done in a company providing variety in ideas, styles of working, vision, creativity, innovation, histories, and lifestyles.

An important benefit is that it strengthens the human and organizational capital, which can be used as a key unit to establishing competitive advantage. Companies who interact directly with the customers are finding it increasingly important to have the makeup of their workforces reflect the makeup of their customer base. Having a diverse workforce results in a wide range of talent, experience, knowledge, insight, and imagination available to the organization which can be utilized for superior profitability and enhanced reputation. A diverse workforce that feels comfortable communicating varying points of view provides a larger pool of ideas and experiences. The organization can draw from that pool to meet business strategy needs and the needs of customers more effectively.

There are, however, some challenges of diversity in the workplace. Perceptual, cultural and language barriers need to be overcome for garner the benefits of having a diverse workforce. Ineffective communication of key objectives results in confusion, lack of teamwork, and low morale. There are always employees who will refuse to accept the fact that the social and cultural makeup of their workplace is changing. This may even create a hostile environment with instances of racism, sexism, homophobia, and ageism. Implementation of diversity in the workplace policies is also a major challenge. Managers may also be challenged with losses in personnel and work productivity due to prejudice and discrimination and complaints and legal actions against the organization.


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