The document discusses the importance of diversity and managing a global workforce for businesses. As globalization increases, companies must address diversity across cultures and geographies to succeed. Embracing diversity can provide strategic advantages by leveraging different perspectives. However, many businesses still see diversity as an obstacle rather than an asset. To fully benefit from diversity, companies need programs and training to understand different cultures and minimize communication issues. Managing a diverse workforce will be critical for organizations to adapt and thrive in an increasingly global marketplace.

1. Diversity and Global Business Environment
The emerging trend towards liberalized global policies coupled with suitable reform processes
throughout the globe have drastically changed the business environment for the firms. This leaves the
managers in organizations of all sizes and types around the world with the opportunities and
challenges of operating in the global market. The immediate issue to be addressed is configuration of
human resource that is diverse in culture and geographic proximity especially in global business
organizations. Businesses both large and small are increasing globally, whether businesses like it or
not professionals are increasingly required to deal not only with the plethora of domestic diversity
issues that arises in our work places and business environments, but also with cross-border and
multinational issues as well. Many organization see global diversity as obstacles to overcome rather
than as tool to be leveraged upon for business success. There is need for a conscious attempt for
businesses around the world to focus on diversity as a strategic advantage.
The term diversity need be defined in its context. However diversity is a challenge in any business
environment. Thus, with the immersion of global business, it is important to understand the nature of
diversity.Diversity is a mixture of society, custom and traditions; it is not a mannerism or
characteristic. It involves borrowing of best practices globally.
Diversity in business is a collection of individuals who differ from each other on one or any number
of dimensions including culture, values, education, gender, marital status and age. Diversity deals
with visible and invisible characteristics.
Diversity can be seen as a composition of a wide range of unlike elements or qualities. With the
immersion of global business and greater technology, domestic and international businesses have
come to experience diverse melting pots. Within these societies, diversity traits of culture,
occupation, socioeconomic status, nationality, and personality have been/become significant factors
that influence the 21st century’s global economics. Hence, understanding the nature of diversity will
help business to understand a culture’s needs and wants, and help to assisting merging international
products with domestic products within an ethical code.
Understanding the concept of diversity is the prelude to answering why diversity in our business
environment is significant. Many thought the concept of diversity to be a “fad” that would be
significant for a while then fade. Diversity is not based on one person’s ideas or on one interesting
way of looking at things. Instead, it is a concept that should matter to every single one of us, both
personally and professionally. For businesses and communities to survive and flourish, a society must

2. be aware and sensitive to all members within. When all society segments are respected and utilized it
is beneficial to the whole.
Understanding diversity involves a method of implementing an uncomplicated transition from culture
to culture teaching employees about international products (dependent on business) and traditions.
This should eliminate any communication error that employees may misinterpret with consumers.
Businesses need to familiarize themselves with different cultures and understand the worldwide
market to sustain a diverse and productive environment. In addition, an expansion of knowledge in
terms of diverse customs, training of employees of a foreign culture in business is required. This will
not merely provide an easier method to communicate (between employees and consumers, or
consumers with employees), but provide support and determines the best course of action to
intermingle a domestic tactic with international tactics.
Companies now face intense competition all around the globe. In this challenging environment
companies seek to adopt strategies that sustain their business growth. As a result organizations are
changing the way they conduct and operate their businesses, transforming themselves in order to cope
with these demanding circumstances. For today's business managers, the need to comprehend these
strategic drivers for change is imperative. In order to survive, managers need to be able to respond
appropriately, not just for today, but for the organization's future success. This means they must plan,
organize, direct, and control resources across time, distance, and cultures. Furthermore, in this ever-
changing environment the manager must now attract, retain, and promote a diverse workforce.
Diversity is a multi-faceted concept that will continue to evolve as more industries move toward a
global marketplace.
However, valuing diversity creates a business environment that respects and includes these
differences (in culture, background, opinions and ideas), recognizing the unique contributions that
individuals with many types of differences can make, and creating a work environment that
maximizes the potential of all employees and increases business productivity.
Diversity highlights our differences as individuals; however, the value of global diversity in our
businesses is that these differences create an entity that is far more powerful and greater than the sum
of its individual parts. Employers around the world must broaden their concept of what diversity is,
how it will impact their organization and what they need to do to prepare for the inevitable future.

3. Considering the global market today, diversity if allowed will permeate the workplace and become a
necessity to the success of organizations large and small. As businesses compete in a more global
arena, the value of different perspectives and talents will be vital to an organization’s survival and
growth. Managers will be expected to have a firm understanding of managing a diverse workforce to
be effective in positioning organizations for future business opportunities.
Promotions, advertising, and marketing are the sole communicators between a business and the
public; diversity in a business’ workforce can strengthen communication skills and amplifies the
insight of cultural influences.
As demographics continue to change, the importance of successfully managing a global diversity will
continue, however, not without overcoming barriers. Nobody ever really said or believed that
diversity was easy. Creating, sustaining and valuing a diverse workforce, is hard work, which
requires diligence, knowledge and a great deal of courage. Barriers to diversity consist of systemic
and emotional characteristics that can hinder diversity efforts globally. Fear, unrealistic objectives
and goals and the “like me” syndrome are the most pronounced challenges to diversity resolutions.
Fear generally exists when implementing a change. The key is not to let fear stifle efforts and
implementation.
As language barriers and communication are a prevalent when discussing diversity, when
communicating international products domestically, or vice versa, using gestures or languages that
another country doesn’t use or accept can pose as a fallacious effect, consequently impairing the
communication effort’s distinctive intention.
One of the biggest challenges to success of global diversity efforts within the corporate world has
been to set goals that are unobtainable and unrealistic. When the goals are not reached, critics are
fueled and people become discouraged. Err in the direction of setting goals that are short term,
conservative in scope and as measurable as possible. Goals and objectives must be appropriate for the
organization and not overly ambitious in their timeframe. Benchmarking with other organizations
across the globe will help set realistic objectives. There is much to learn in terms of strategies and
policies from trend-setting organizations. Just as diversity teaches us to be who we are and that
differences is to be valued; every organization that wants to remain in business on a global
perspective need to remember that it is unique and will be best served by learning from but not
imitating others.

4. Another challenge to diversity efforts is termed the “Like Me” syndrome. The “Like Me” syndrome
refers to the axiom of human nature that people prefer to associate with other people who are like
them. This syndrome can lead to cultivating a culture of bias and hinder willingness to give open and
honest feedback. The desire for social certainty causes decision makers to prefer to work with
individuals that they perceive to be similar to them. Recent studies indicate that there continues to be
a “desire for social certainty” in organizational settings. Should the notion of the “Like Me”
syndrome persist, resistance to diversity will continue to exist. Barriers to diversity will arise and can
create a hostile environment.
These challenges if however not detected and resolved via constructive leadership, will lead to loss of
innovative potential in diversity efforts and ultimately to failure in the undertakings of a business
organization.
Conclusively, the changing of demographics, globalization of business, and the pursuit of effective
competition makes it imperative for business around the globe to implement programmes for
diversity management. It is often said that variety is the spice of life; hence, the ability to effectively
manage a diverse workforce will be a major determinate of the continued survival and success in
becoming a global corporation. Many organizations have begun by initiating training programmes,
yet they have not explored the full scope of a diverse environment by introducing a complete
diversity programme. Global diversity is a very sensitive issue and if not handled properly it can be
detrimental to an organization. A cultural evolution is taking place in the worldwide workforce, and
those organizations that take immediate action will be in the forefront of the global business
environment in terms of wider market, innovations and business productivity.
Nane: Adelakun Oluwafemi Adeshola
Course: MBA+CFA