The Effect of Diversity on an Company’s Structure and Performance

677 Words 3 Pages
The recent business trends of globalization and increasing inter-group differences has turned scholarly attention to the management of demographic differences. These diversities exist in today’s modern company where demographics, cultural and personal differences among the workers and customers who do business with the company, i.e. surface – level diversity and deep level diversity. The relationships between racial and gender diversity often affects the business organizational performance. However, regardless of these trends, research has revealed the diversity practice's impact on companies performances linger absent (lacking).
There are challenges businesses stumble upon with diversity in the workplace. Many companies have along
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This is a sensitive and difficult issue for companies to discuss, because of legal climate and the potential for litigation. Diversity, if unattended, is likely to have a distasteful result on groups’ processes communications, conflict, and cohesion in the work palace. This conflict can be beneficial if it avoids group discussion and brings additional points and views into the discussion where other forms may impair group performance. Diversity can have a positive and negative impact on the performance of a company structure depending on the corporation strategy, culture, and human resource practices enforced. These effects usually occur in group and team incidents under i.e., facilitating conditions and inhibiting conditions. Both have positive and negative effect on business performance.
The upshot of diversity on organizational performance may be more encouraging if group leaders and associates build on team members’ ingenuity and information. When the human resource hire individual (management) that is of diverse and don’t have the communications with coordinating skills of diverse to deal and turn diversity into an advantage for the company is more likely to lead negative performance. In other words, the practices human resource use in hiring, choosing, teaching, encouraging, and gratifying employees has a large impact on the performance. Nevertheless, gender diversity has amplified positive group process, while racial

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