Diversity in Business

Diversity in Business

Background of the Proposed Study

            Business leaders need to consider the impact of diversity and ethics in the overall success of their businesses. Employees are more likely to perform better in a work environment that they feel safe and respected. Currently, the business environment is made up of a diverse workforce. As a result, organizations need to manage the diverse workforce effectively to continuously grow. According to Ulus and Hatipoglu (2016), the human element in businesses play an important role in the success and growth of an organization because they can influence the performance and structure of the business. Therefore, if managers understand the role of diversity in businesses, they are more likely to improve organizational performance and solve any problems. Diversity is a crucial aspect in businesses due to the increasing need to adapt to emerging issues.

With the increasing globalization of the modern economy, diversity and inclusion in businesses is vital since it facilitates creativity and innovation. These two elements when put together results in increased productivity. Research studies on the importance of diversity in businesses indicates that productivity within a diverse team is more compared to a normal team (Saxena, 2014). The reason is that a diverse team can understand all their customer needs and incorporate ideas to match those needs. Singapore is a perfect example when it comes to analyzing the importance of diversity in businesses. Singapore is a country made up of people from different ethnicities and people of different religious beliefs. Since its independence, the country promoted racial and ethnic integration among its citizens leaving no room for discrimination of any kind (Eswaran, 2019). As result, people from different ethnicities learned to live and work together making Singapore one of the most successful countries in the world.

I learned about the issue of diversity from my workplace. Initially I worked with a team that was not diverse and team collaboration was challenging. However, after the manager hired a more diverse workforce, things changed and the organization achieved more success. Diversity not only enhances work performance among employees but also increases employee morale. Hence, managers should care and implement strategies that promote diversity and inclusion at the workplace to enjoy the benefits of a diverse workforce.

Problem Statement

            Due to increased globalization in the current business environment, there has been an increase in interactions among people from different backgrounds. These interactions have resulted in increased challenges for businesses to manage a diverse workforce. As stated earlier, a diverse workforce presents businesses with a vast of benefits including creativity and innovation. It is upon organizations to implement strategies to manage diversity to increase their overall performance. In the coming years, diversity will play a significant part in the success and growth of business. As a result, there is the need for businesses to formulate programs to manage diversity and increase inclusiveness.

The purpose of the study is to understand the impact of diversity in businesses. The study aims to identify barriers that hinder workplace diversity. Also, the study aims to identify strategies that can be implemented by businesses to increase diversity at the workplace. The following research questions were considered in the study:

  1. What are the benefits of diversity in businesses?
  2. Does diversity in business improve employee morale?
  3. How can businesses address diversity-related issues?

Literature Review

Diversity Management

            According to Urbancová et al. (2020) diversity management refers to actions implemented by organizations to promote employee inclusiveness regardless of their backgrounds. The global structure of businesses is changing due to increased interactions among people. Businesses need to adapt diversity management strategies to appropriately meet the demands of growing workforce diversity worldwide. Business organization across the globe are incorporating various programs and policies to promote workforce diversity (Cletus et al., 2018). The main purpose of these programs and policies is to create an inclusive and welcoming work environment for all groups across countries.

There are two types of diversity management including intranational and cross-national diversity management. Intranational diversity management entails managing employees who are either citizens or immigrants. The primary purpose of intranational diversity programs is to provide employment opportunities to immigrants and minority groups (Urbancová et al., 2020). Cross-national diversity management entails creating a workforce comprised of people from different nations (Lauring, 2013). The workforce can also include immigrants from different nations looking for employment. The main issue with cross-national diversity management is that organizations must consider cultural and legislative laws of their host countries.

In the past, diversity management was seen as legal constraints instead of a means to achieve competitive advantages (Sharma, 2016). However, in the current world, businesses use diversity management techniques to create a diverse workforce to achieve a competitive niche in the industry. Diversity management allows employees to be more innovative and bring their skills to the organization regardless of race, ethnicity or religion. Cletus et al. (2018), outlines that workforce diversity can facilitate an organization’s growth if appropriately implemented by top management. Top executives within an organization are responsible for enacting policies and they can either promote or disregard workforce diversity depending on policies they enact. To promote workforce diversity in businesses, leaders need to embrace diversity and people from all backgrounds.

Strategies to Enhance Workplace Diversity

            Business need to celebrate employee differences to promote diversity in the workplace. Organizations need to ensure diversity is celebrated as a cultural value providing employees with an opportunity to share their backgrounds and cultures (Amaliyah, 2015). Employees need to be provided with the chance to work in areas they can advance. Freedom to work on specific tasks allows them to unleash their creativity and performance resulting in increased employee morale, retention and productivity (Cletus et al., 2018). Businesses need to implement more inclusive workplace policies. Another prevalent strategy to promote inclusiveness is to conduct diversity training.

Benefits of Workplace Diversity in Businesses

            Sharma (2016) found out that workplace diversity allows employees to feel valued and accepted. A business that promotes workplace diversity enhances employee happiness resulting in increased levels of job satisfaction and reduced employee turnover. Cletus et al. (2018), outlines that a diverse workforce leads to greater creativity and innovation, the most important ingredients of business success and growth. Increased creativity and innovation leads to increased employee performance and productivity. Diversity in the business allows employees to be more effective and motivated.

The Challenges of Diversity in Businesses

            According to Cletus et al. (2018), diversity can lead to workplace tensions resulting in decreased employee performance. Diversity results in various changes within an organization and some employees may be resistant to change. Top-management needs to be prepared to handle challenges that come with a diverse workforce. Discrimination is another barrier that hinders workplace diversity due to cultural misunderstandings (Cletus et al., 2018). Diversity in businesses can result in communication issues especially from language barriers. Businesses need to address these challenges before they prevent successful adaption of workplace diversity.


            It is important to study diversity in business because today’s economy is changing due to increased globalization. Due to these changes, every business needs to consider how diversity will affect their success and growth in their specific industries. The world economy is expanding and has presented businesses with multiple opportunities to venture into international markets. Hence, a diverse workforce is crucial to build strong teams. Teams that match changes in global economies by being innovative and creative to tackle problems from all perspectives. Therefore, it is important to study diversity because it yields many positive outcomes for a business.

The Research Design

Type of Study

The type of study used for this paper is descriptive research design. According to Sharma (2019), descriptive research design is a research method that entails learning the behavior of a subject without affecting its normal behavior. The method is appropriate for studies involving a large number of samples for both qualitative and quantitative analysis.

Data Collection Methods

            Based on the objectives of the study, the main data collection technique was questionnaires. Participants responded to the same set of questions providing the research with enough information for analysis. The questionnaire involved multiple sections. The first section outlined the respondent’s gender and age group. The second section gathered information on respondent’s perspective towards diversity. The third section used a ranking scale to collect information on how to improve workplace diversity and barriers for workplace diversity.

The Sampling Design

            The research used stratified random sampling method. The respondents were selected from diverse backgrounds and divided into smaller groups. A total of 100 respondents were involved in the study to achieve a degree of representativeness. Each of these respondents received the questionnaire and sent it back after answering all the questions.

Data Analysis

            The collected data from the participants was accurately analyzed by the use of appropriate statistical methods. For accurate data analysis, linear regression was used. After an extensive analysis of the questionnaire data, it was then entered into a computer to obtain descriptive statistics. Independent sample t tests were used to analyzed differences among groups. Differences among age groups were analyzed using one-way ANOVA test.

The majority of the participants were male. 62 males and 38 females took part in the study. In terms of age-group, most of the respondents were between the age of 30 to 45 years, followed by those between 22 to 29 years. 75% of the participants worked in international companies and 25% worked in local organizations.

The study has a 100% response rate since all the participants responded. According to the study findings, most of the participants appreciated workplace diversity and believed businesses need to implement diversity programs to increase inclusiveness. Responses provided by men differed from those provided by females. Hence, organizations need to implement strategies that match the needs of both gender based on their preferences.

Project Management Description

Time Frame

            The study took 10 days to complete. The participants were given 7 days to respond to the questionnaire and send it back. It took 2 days to analyze the data collected from the questionnaires. One day was set aside to double-check the information to ensure it was accurate before it was published. Experts in work diversity were approached on the last day to get their opinions on the analyzed data.


            The cost for the questionnaire forms was about $200. Office supplies’ cost was $500. Data access costs were about $1000. The total budget was $1700. The whole research did not include many costs since most of the communication was done via email.












Amaliyah, A. (2015). The importance of workplace diversity management. International Journal of Sciences: Basic and Applied Research17(2), 175-182. https://core.ac.uk/download/pdf/249334085.pdf

Cletus, H. E., Mahmood, N. A., Umar, A., & Ibrahim, A. D. (2018). Prospects and challenges of workplace diversity in modern day organizations: A critical review. HOLISTICA–Journal of Business and Public Administration9(2), 35-52. doi:10.2478/hjbpa-2018-0011

Eswaran, V. (2019). The business case for diversity is now overwhelming. here’s why. World Economic Forum. https://www.weforum.org/agenda/2019/04/business-case-for-diversity-in-the-workplace/.

Lauring, J. (2013). International diversity management: Global ideals and local responses. British Journal of Management24(2), 211-224.  https://doi.org/10.1111/j.1467-8551.2011.00798.x

Saxena, A. (2014). Workforce diversity: A key to improve productivity. Procedia Economics and Finance11, 76-85. https://doi.org/10.1016/S2212-5671(14)00178-6

Sharma, A. (2016). Managing diversity and equality in the workplace. Cogent Business & Management3(1), 1212682. https://doi.org/10.1080/23311975.2016.1212682

Sharma, S. (2019). Descriptive research designs. ResearchGate. https://www.researchgate.net/publication/333220662_Descriptive_Research_Designs.

Tamunomiebi, M. D., & Ehior, I. E. (2019). Diversity and ethical issues in the organizations. International Journal of Academic Research in Business and Social Sciences9(2), 839-864. http://dx.doi.org/10.6007/IJARBSS/v9-i2/5620

Ulus, M., & Hatipoglu, B. (2016). Human aspect as a critical factor for organization sustainability in the tourism industry. Sustainability8(3), 232. https://doi.org/10.3390/su8030232

Urbancová, H., Hudáková, M., & Fajčíková, A. (2020). Diversity management as a tool of sustainability of competitive advantage. Sustainability12(12), 5020. https://doi.org/10.3390/su12125020


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