Diversity is an increasingly important factor in organizational life as organizations world-wide become more diverse in terms of the gender, race, ethnicity, age, national origin, and other personal characteristics of their members. By the year 2000, the American workforce is likely to be gender-balanced, with only 58% of the workforce comprised of White, native born Americans (Jackson et al., 1995). Due to the increasing globalization of business requires employees from different cultures to work together in cross-national teams. Firms are being forced to form cross-functional, inter-departmental, cross-divisional, and inter-organizational alliances in order to make maximum use of scarce resources and thus increase their competitive advantage.
People tend to think of diversity as simply demographic, a matter of color, gender, or age. However, groups can be disparate in many ways. Diversity is also based on informational differences, reflecting a person's education and ...