Cultural Diversity Management - Challenges and Advantages of Culturally Diverse teams in the company

Seminar paper from the year 2021 in the subject Leadership and Human Resource Management - Miscellaneous, grade: 1,7, Heilbronn University of Applied Sciences, course: international human resources, language: English, abstract: Diversity management is indispensable for exploiting the potential of diversity in the field of organisation and teamwork. This paper shows the advantages that can result from diversity in the company or work groups. By describing the consequences that can arise, it is made clear how important it is to actively manage diversity. In addition, approaches are presented that will help to manage diversity effectively. According to a study by McKinsey, companies (worldwide) that have a high ethnic or cultural diversity have a 36% higher probability of being profitable. For this purpose, 1,000 companies from 15 different countries were examined. However, the study also shows that progress on the issue of diversity is slow. According to the study, 30% of the companies have not made any progress in the area of diversity despite being profitable. In 33% of the companies, there was even a deterioration, while in the other 33% of the companies there was success.