Diversity in Organizations

Abstract

Abstract Many organizations declare that diversity is a top priority, aiming to capitalize on individual differences. However, increasing diversity does not inherently boost organizational performance. Instead, active management is required to unleash the favorable and prevent the unfavorable effects diversity can elicit. This chapter builds on management, organizational behavior, and organizational psychology literature to present different perspectives on diversity and theoretical explanations for its effects. It further highlights diversity-related strategies, climates, and beliefs, diversity training, and leadership as relevant factors for effective diversity management. The chapter summarizes empirical findings for each factor, derives practical implications for organizational decision-makers, and outlines topics for future diversity research.