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Diversity may seem self-explanatory, yet it may have different meanings in organizations with respect to different contexts. The term is first defined, followed by a historical background, and contrasted with its definition in today's environment. Diversity issues from the management and employee perspectives are finally considered.

Until lately, diversity in the workplace has been implied as the ongoing interaction between employees and employers with different cultural, ethnic, and racial backgrounds that have significant influences on the operations and management of an organization. However, recently, diversity has broadly been redefined as the collective differences and similarities of different dimensions. For example, diversity issues related to demographic characteristics of employees are different from those related to diverse functional issues such as marketing, research, manufacturing, finances, and so on within an organization. Thus, employees' demography and organizational functions are two different dimensions of diversity. In other words, today's workplace diversity represents the complex multidimensional issues involving workers and management of similar and dissimilar nature.

The History of Diversity in the Workplace

Diversity and multiculturalism have gradually been a part of the workforce in the United States since the latter half of the 19th century. The melting pot and Americanization movements of the 1880s were directed toward removal of cultural and linguistic differences by assimilation. Throughout the history, politicians, educators, and industry leaders tried to eliminate the differences between new immigrants and contemporary American residents in society, as well as in the workplace. Their efforts were only partially successful, as it became obvious that blending into the American melting pot was not so easy for immigrants who had very different cultures and were visibly different from the early settlers from the European continent.

Policy makers started to recognize the issues related to diversity since migration from developing countries was growing faster than those from the developed nations. In 1940, more than 85% of immigrants were from Europe, whereas in 1995, 75% were from nonEuropean countries. By early 1990s, the organizations felt the hard reality of managing a workforce consisting of immigrants from developing countries with diverse and “unmeltable” social, cultural, physical, and racial backgrounds. Increasingly, studies have shown the growing concerns of managers about diversity issues in the workplace. The two most important concerns were how to communicate with their employees and how to motivate them.

Today's workforce is more diverse than ever. According to the U.S. Bureau of Labor Statistics, of the 26 million new workers who came into the workforce in the United States between 1990 and 2005, about 80% were minorities, including women. Sometime between 2055 and 2060, the total minority population is projected to surpass the nonminority population, which now consists of Euro-Americans. At the same time, the buying power of the minority groups are increasing at a fast pace. For example, in 2005, African Americans spent $630 billion a year in goods and services, while the Latin American market continues to grow even faster and is comprised of the largest minority group with a spending power of more than $700 billion.

Diversity and Characterizations of Employees in the Workforce

The most important reason for diversity to become a major issue in organizations is the significant change in workforce population since the later half of the 20th century. The steady growth of minority populations is projected to make them the domineering force in the workplace in the future.

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