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Diversity in Teams Increases Organisational Performances Assessment Answer

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Diversity in teams increases organisational performances


Diversity in teams increases organisational performances


In the fast-changing work environment and globalization of the workforce, diversity and inclusion are two basic mantras of success in today's world. Due to increased awareness and standardization of processes and increased automation and education, more and more prospective employees are ready to join every year.  Such a workforce is having diverse backgrounds with respect to their sex, ethnicity, culture, race, creed, and orientation (Nishii, 2018). Thus it is important to have proper policies and systems in place to make them feel normal employee and thus they would be able to work freely and benefit the organization (Ruiz-Jiménez, 2016).

Benefits of diversity

Businesses do benefit in more ways than one by promoting employee diversity and are also seen as an organization that is related to improving motivation, retention, and innovation.  Employee diversity also helps to improve the company’s bottom line and improve the balance of the workforce (Lauring, 2017). We have seen many top CEOs and businesswomen as being females and they have completely outshined their male counterparts. Diversity at the workplace is also seen as a modern form of innovation and a source of inspiration. Having a diverse workforce onboard brings different perspectives and thought and views on board and thus adds up to the organizational decisions and strategies. Such a workforce helps solve complex problems by application of different viewpoints and opinions (Jin, et al, 2017). Diversity has shown improved competitive edge and value addition to businesses.  It is a proven fact that companies that are open to diversity have a better brand image, lesser legal issues, and open to adapt to changing trends and being flexible and thus help create exciting products and solutions. Such a practice also helps organizations look towards problems about a particular sector region in a better way and help them allocate resources (Ruiz-Jiménez, 2016).

In any company, the board has a diverse workforce taking decisions that can take constructive decisions and also gives a positive signal to the society in which it belongs (Sanyang, 2019). The future workforces are all abutted the active organization’s commitment that would be based on the diverse workforce and equality factor. For example in McKinsey & Company adequate evidence has been found, that due to the strong gender diversity there have been executives that outperform by the 21 percent more and can attain higher profitability in comparison to the other companies. The teams with a diverse workforce have also shown a remarkable 33 percent of higher profitability as compared to the other peers. The reason is largely due to the ethnic and cultural diversity identified among executives.

With a diverse workforce, an organization can recruit, retain, and utilize workers from all socio-economic backgrounds. Such a practice also helps firms save themselves from any legal costs and meet regulatory targets as well. A firm also gains an advantage in making products suited to a large base of consumers with different orientations. A diverse team would be able to work better on a project related to a specific set of people.  Due to their different background and orientation, there is a lot of scope of creativity and problem-solving ability. Creativity ensures a rich flow of ideas and active participation in innovation and thus improves financial performance and product range. 

The different aptitude and mental developments help such a team to generate multiple ideas and look to a situation from a different and new perspective, thus, generating multiple solutions and possibilities. With a diverse team on board, the team learns to respect each other more, and thus there is a huge set of value creation in the workplace leading to such outlook towards clients and customers as well and be appreciated in the market (Andrejczuk, et al, 2019). With passing time, we see many MNC's having attached to certain such agendas that help develop the job market and increases the scope of diversity and inclusion. Such a practice has helped diverse people to feel important and relatable to the job market and they are motivated to move ahead in lives. Many remarkable products and campaigns have been successfully run by diverse people and borne success in the market (Andrejczuk, 2017).

It is also to be understood that there are regulations in many countries to employ a certain quota of employees form certain sect and also they have agendas to promote the participation of women at the workplace and thus it is important for companies to hire such a workforce and save themselves from any regulatory issues. It is also important to see such a law as a positive thing form organization's perspective and an effort needs to be made to find good talent and help then grow so that they prove to be an asset to the organization gradually. It is also important to see such a policy from various governments as a measure to improve the social aspect of society and contribute directly to the upliftment of people. Such an act of the company would also help them improve their market acceptability and be seen in a good spirit (Hoisl, 2017). The goodwill of the company would increase and ultimately help it register improved sales numbers and market share (Garcia Martinez, 2017)


To conclude,  diversity in teams has always increased a higher performance that comes from identifying the best talent. The prominent reasons are the work ethics while engaging the diverse workforce and also to choose the diversity to improve the performance. The diverse organization has always shown a higher engagement in the decision-making abilities and the leadership is seen as supportive to support the workforce.  Diversity within the teams helps to understand the code of conduct and ethics to be followed. Team performance can improve with consistent co-working with a diverse workforce, which aims to improve and provide a better product due to problem-solving abilities.

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