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Diversity Management

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In the past few decades, globalized markets, international competition and demographic changes in the workforce composition and consumer profiles has increased diversity within organizations. Consequently, organisations have to review their management practices and develop new approaches in managing its people in order to cope with these demographic changes. Such policies implemented have to be done with the consideration of maximising the reaping of potential advantages of diversity while minimising its potential disadvantages (Cox, 1994).

Studies have indicated that embracing diversity has a positive impact on individual productivity, organizational effectiveness and sustained competitiveness. It enables the creation of new and innovative ideas from employees equipped with a variety of different experiences and beliefs. These are vital to the growth of the organization as they provide for new business opportunities and allow for the recognition of potential areas of future growth. Furthermore, a diverse workforce has greater knowledge and understanding of the preference and consuming habits of a increasingly diversified marketplace.

For organisations to reap the benefits of diversity, people within the business has to change how they interact. As such, diversity management often falls under human resource management (HRM) as it deals with people management. It would, therefore, be imperative to incorporate diversity into the organisation's strategic HRM in order to achieve efficient diversity management and foster a inclusive working environment.

The report revolves around the case of IBM - which is a pioneer in valuing diversity within the workforce (Bauer, 2013). With a workforce of over 427,000 employees that operates in 172 countries, diversity management becomes a key business priority. A company that employs individuals and sells products worldwide

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