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Business Textbooks Boundless Business Human Resource Management Diversity in Human Resources
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Concept Version 8
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How Businesses Benefit from Diversity

Diversity brings substantial potential benefits such as better decision making and problem solving, and greater creativity and innovation.

Learning Objective

  • Explain the benefits of diversity in an organization


Key Points

    • Diversity provides organizations with the ability to compete in global markets.
    • Simply recognizing diversity in a corporation helps link the variety of talents within the organization. The act of recognizing diversity also allows for those employees with these talents to feel needed and have a sense of belonging, which in turn increases their commitment to the company.
    • Standpoint theory suggests that marginalized groups bring a different perspective to an organization that challenges the status quo since their socially constructed world view will differ from that of the dominant group.

Term

  • Diversity

    A variety; the quality of being different


Example

    • An example of a company involved with creating diversity in the workplace is MentorNet, a nonprofit online mentoring organization that focuses on women and underrepresented minorities in the STEM (Science, Technology, Engineering, and Mathematics) fields. MentorNet has used an algorithm to match over 30,000 mentor relationships since 1997. The organization gives students, especially women and underrepresented minorities, the chance to seek mentors to discuss how to overcome obstacles in their fields and eventually their workplace.

Full Text

Diversity is beneficial to both the organization and its members. Diversity brings substantial potential benefits such as better decision making and improved problem solving; greater creativity and innovation, which leads to enhanced product development; and more successful marketing to different types of customers. Diversity provides organizations with the ability to compete in global markets.

Simply recognizing diversity in a corporation helps link the variety of talents within the organization. The act of recognizing diversity also allows for those employees with these talents to feel needed and have a sense of belonging, which in turn increases their commitment to the company and allows each of them to contribute in a unique way. Standpoint theory suggests that marginalized groups bring a different perspective to an organization that challenges the status quo since their socially constructed world view will differ from that of the dominant group.

Although the standpoint of the dominant group will often carry more weight, a transformational leader will encourage conflicting standpoints to coexist within an organization. This will create a forum for sanctioned conflict to ensue. Conflict stems from challenging the way things have always been done, and ideas and problems that have not been explored from multiple perspectives. Standpoint theory gives a voice to those in a position to see patterns of behavior that those immersed in the culture have difficulty acknowledging. These unique and varying standpoints help eradicate groupthink which can develop within a homogenous group. But there are still many challenges to fostering an inclusive environment in the workplace for diversity of thought and ideas.

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