Diversity in an Inclusive Environment

Posted: November 26th, 2013

Diversity in an Inclusive Environment

The advent of economic liberalization towards the achievement of trade diversity as encompassed by the globalization concept has ensured enhanced consumer satisfaction from the ability to have a highly differentiated product mix and product affordability due to the healthy competitive forces. As business organizations expand to international corporations, labor diversity is also achieved. Labor mobility has also been accelerated by these expansions as the workforce targets superior working environments for higher remunerations. The 2009 census conducted in America revealed that not more than one percent of the US workforce constitute to the native residents of America. The rest of the workforce comprises of immigrants from various cultures like Africans, Mexicans, Latin Americans, and Asians among others (Rice, 2010). Diversity within the working environment “defines protected classes, which includes a person’s race, color, religion, sex, national origin, age, disability, or genetic formulation,” (Agard, 2010, p. 872).

Diversity in the workplace was majorly noted in the late twentieth century in private sectors as a number of optimistic measures were noted amongst the practice. A diverse business culture embraces people from various backgrounds and nations enhancing a company’s ability to acquire a larger market. For instance, a company may have been instituted in America and only adopted domestic expansion until the whole American region is covered. This form of expansion is easily achievable as the nation’s workforce is encompassed by a similar working environment in terms of laws and cultural practices. Expansion to a new country like Japan proves to be challenging due to the practices upheld in the new region. However, having Japanese employees that have interacted with the target nation makes expansion easier based on the insight afforded by the employee to the company. Secondly, Fernandez and Barr in a study conducted in 1993 noted that, this form of expansion leads to an increased level of sales that translates to enhanced profitability and success levels in business organizations (Agard, 2010).

Increased profits are attributed to enhanced revenues as the costs of production are diminished by higher economies of scale. In a study conducted in the periods 2003 by Kochan et al, diversity has led to the creation of superior products and services attributed to the level of varied ideas presented by the mixed employees. For instance, cultural practices affect the manner and perspective individuals take towards problem solving. Analyzing these assorted ideas would lead to the creation of innovative solution fro the business entity and in turn create a higher competitive edge against business rivals. Mannix and Neale in a 2005 study asserted that high levels of diversity lead to a positive impact on stock prices (Agard, 2010). Global expansion imparts a level of credibility to a business organization from the common assumption that such a strategy requires a very strong asset base to support a trade to the global economy front. As the profits increase for the organization, so does the investment appeal as stock prices become more competitive. Consequently, the level of investments from existing and new entrants is also affected in a positive manner.

Demerits attached to organizational diversity include high levels of costs especially on the research component, as the proposed solutions have to be analyzed before the optimal one can be adopted. Closely related to the cost element is time factor that tends to be prolonged in a diverse business culture (Rice, 2010). This is explained by the fact that, diverse employees lead to the creation of diverse ideas that tend to require a longer level of analysis. Each solution has to be accorded equal treatment to ensure that each individual is acquires an equal sense of belonging within the organization. Impartiality leads to work conflicts that are very costly in nature since they affect the productive ability of the workforce. Lastly, managing diverse groups tends to be more complicated owing to the differences created. In conclusion, in today’s working culture, diversity is an inevitable business element in the private sector and a balance should be accorded within the need for expansion and the level of diversity to ensure that the demerits are reduced drastically by the benefits.









Agard, K. A. (2010). Leadership in Nonprofit Organizations: A Reference Handbook. Thousand Oaks, CA: SAGE.

Rice, M. F. (2010). Diversity and Public Administration: Theory, Issues, and Perspectives. Armonk, NY: M.E. Sharpe.
















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