Effective management of a diverse workforce

Content

1.0 Introduction 1

2.0 The Importance of Effectively Managing a Diverse Workforce 2

2.1 Definition of Workforce Diversity 2

2.2 Business Reasons for Emphasizing Effective Management of a Diverse Workforce 2

2.2.1 Competitive Advantages 2

2.2.2 Creative Ideas 3

2.2.3 Synergy 4

3.0 The Relationship between Diversity and Business Performance 5

3.1 The Profile of the Relationship between Diversity and Business Performance 5

3.2 The issues which should be Considered by Companies 6

3.2.1 Matching people with Organizational Culture 6

3.2.2 Compensation for Employees 6

3.2.3 Democracy in the Process of Management 7

4.0 Focalizing Diversity and Response 8

4.1 Doubt of Diversity 8

4.2 Explanation of Diversity 8

4.2.1 Respond to What Diversity is 8

4.2.2 Respond to What Diversity Management is 8

5.0 Company’s Policy to Emphasize the Management of Diversity 9

5.1 The Importance of Management of Diversity 9

5.2 Activities to Emphasize Management of Diversity 10

5.2.1 Employment Policy 10

5.2.2 Training and Educational Programs 11

5.2.3 Performance Management 11

6.0 Control of Intergenerational Conflict 12

6.1 Overview of Intergenerational Conflict 12

6.2 Reasons cause Intergenerational Frictions 12

6.2.1 Gap of age 12

6.2.2 Amour-propre of individuals 13

6.2.3 Personality 13

6.3 How to Handle the Intergenerational Frictions 14

6.3.1 Effective Communication 14

6.3.2 Job Rotation System 14

6.3.3 Downsizing 15

7.0 Realities Oppose to Manage Workforce Diversity 15

7.1 Disadvantages of Workforce Diversity 15

7.1.1 Increase of Conflict 15

7.1.2 Increase of Cost 16

7.1.3 Increase of Labor Turnover and Absenteeism 17

8.0 Conclusion 17

Reference 19

List of Chart

Table 1………………………………………………………………………………….4

1.0 Introduction

Diversity” is a trend that is ever contemporary, historical, and futuristic. It touched people’s foremothers and forefathers, it touches the seventh generation that follows human beings, and it touches people now-at this moment. It is articulated by business terminology at executive retreats by designated leaders. “Diversity” is fiery and tame depending on one’s perspective, the context, the issue at hand, and one’s own energy flow for the day.

What diversity and how to effectively manage diversity become the hot spot issue among numerous companies. In order to get success, firms combine with diverse workforce and actively do R&D for their strategic plan to achieve the goals of them as far as possible. Every coin has two sides, even though diversity could bring success to companies, but it also might cause the trouble to companies, if the management of it is not appropriate. In the process of managing diversity, firms should be careful about the negative impact which is brought by diversity, because diversity may bring several problems to corporation, such as the amalgamation of culture, the increase of cost, and the increase of conflict. Thus, companies should pay attention to resolve these issues in the process of management.

In this paper, in order to understand the relevant questions about diversity, the following topics are addressed: (1) The key business reasons for emphasizing the effective management of a diverse workforce. (2) Companies should manage the issues which are brought by diversity, and then they can see the business performance. (3) The response of what diversity is and what diversity management is. (4) The policy of GE Company to emphasize the management of diversity. (5) What causes the formation of intergenerational conflict and how to handle it? (6) Oppose workforce diversity and what disadvantages are.

Lastly, through the discussion of overall topics, it could be more clearly understand the value of the diversity within business, and corporations can fully utilize the advantages of diversity to do development. Moreover, firms also should attention to the weakness of diversity, especially, the difficulty which might appear in the process of managing diversity.

2.0 The Importance of Effectively Managing a Diverse Workforce

2.1 Definition of Workforce Diversity

According to the description of business dictionary, workforce diversity is similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, sex, and sexual orientation. Moreover, Cummings and Worley (2008, P 473) mention that workforce diversity is more than a euphemism for cultural or racial differences. Such a definition is too narrow and focuses attention away from the broad range of issues that a diverse workforce poses. Diversity results from people who bring different resources and perspectives to workplace and who have distinctive needs, preferences, expectation, and lifestyle. Organization should design human resources systems that account for these differences if they are to attract and retain a productive workforce and if they turn diversity into a competitive advantage.

2.2 Business Reasons for Emphasizing Effective Management of a Diverse Workforce

2.2.1 Competitive Advantages

When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage. Porter (1985) identified two basic types of competitive advantage: (a) cost advantage (b) differentiation advantage. A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself.

As a result of diverse workforce could bring different areas of labors, so different labors from different places have the different requirement of salary. Thus, companies could have a lot of options and choose the economical labors and ensure the quality of products at the same time. In this situation, companies could reduce the cost of them to provide the same quality of products to consumers with a lower price and get the competitive advantage in the markets. Furthermore, due to different employees who have the different background, culture or ability involved in diverse workforce and combine with companies’ effective management of diverse workforce, so they might help companies better analyze the competitors in the markets and deliver the goods that exceed those of competing products, which may increase the competitiveness of companies.

2.2.2 Creative Ideas

As table 1 representation, it might seem obvious to state that the creative idea is an essential part of the development of a business project, but it is worth remembering that the idea is just one of the elements which offer the project coherence. There are two other elements which are just as important as the business idea: the entrepreneur and the market. The balance among the idea for the entrepreneur and the market is crucial to bringing the project to a successful conclusion. The idea not only has to be a viable one, but the entrepreneur also needs to be able to maintain the idea, and have the determination to invest the required time and effort to develop it, and turn it into a real venture (Barcelonanetactiva team, 2009).

Due to the creative ideas is one of the key elements in the process of deciding the business project, so whether companies may collect the creative from their employees will determine how the companies will design their business plan and whether companies can achieve their goals of business. Furthermore, because of diverse workforce of corporations, many different kinds of staffs, such as experienced employees, young employees with active motivation, and employees with different cultural background can support a lot of different ideas. When companies have the systematical management of diverse workforce, companies might have some creative ideas which are useful to the development.

Table 1: “The Three Balance” determine business project

table 1.0

Source: Barcelonanetactiva team, 2009, The Idea is only one Part of the project

2.2.3 Synergy

Synergy can be regarded as the interaction of two or more individuals so that their combined effect is greater than the sum of their individual effects. Think of synergy in terms of a bond, whether somebody thinks of a human relationship bond or a chemical bond, the desired result is a mutually beneficial bonding. When corporations bring their marketing and advertising divisions together to talk about the newest product rollout, corporations want to promote good communication and healthy attitudes. The reason being, when good communication is used to deliver a message coupled with a healthy attitude, the impact of the delivery is much more effective and residual. In turn, the receiver will respond with a genuine comment that directly relates to the topic being discussed, thereby good synergy is formed and an instant brainstorming session of productive ideas is created (Hoback, 2006).

Therefore, if companies have the appropriate management system of diverse workforce, the employees with different cultural background, ages, and personality may contribute their own value and the diverse workforce may facilitate the formation of synergy within the organization.

3.0 The Relationship between Diversity and Business Performance

3.1 The Profile of the Relationship between Diversity and Business Performance

The most frequently asked question by executives about workforce diversity is how it affects business performance (Carter, Simkins & Simpson, 2003). Whereas, extensive empirical research has examined the role of diversity as it relates to age, tenure and product mix (Chatman, Polzer, Barsade & Neale, 1998; Gomez-Mejia & Palich, 1999; Richard, 2000). Someone defines diversity management as maximizing the unique skills and abilities of each employee in an organization. In particular, diversity management is focused on how an organization recruits, trains, and promotes underrepresented groups in the corporate labor market.

The empirical research presents contradictory findings on the value of diversity. For example, Watson, Kumar and Michaelson (1993) report that homogeneous workgroups are better in the short-term, while heterogeneous workgroups outperform other groups over an extended period of time. However, Pelted, Eisenhardt and Xin (1999) found that diversity in groups resulted in emotional conflict that ultimately harmed task performance. Therefore, there is no simple relationship between diversity and business performance. And not only diversity determines the success of business, but many other issues also affect the performance of firms in the market. All in all, diversity should come with other activities, and then, corporations can see the business.

3.2 The issues which should be Considered by Companies

3.2.1 Matching people with Organizational Culture

Cultures can be viewed as an important element within organization and it might create barriers to diversity, create barriers to acquisitions and mergers, or barriers to change (Robbins, 2006). Matching individuals to organizations is a crucial part of success for any company. The match between people and the companies for which they work is determined by the kind of organizational culture that exists. The degree to which an organization’s values match the values of an individual who works for the company determines whether a person is a good match for a particular organization. If the employees of companies could not coordinate with the organizational culture and cannot adapt the environment of workplace, it will be the resistance of the formation of diversity and the companies could not see the performance at all. Thus, corporations should pay attention to understand the organizational culture first. And then, companies may match employees with organization as much as possible, which can promote the formation of diversity. After that, firms might see the positive business performance.

3.2.2 Compensation for Employees

Employees’ compensation is a state-mandated benefit designed to be a “no-fault” system. The purpose of employees’ compensation is to provide benefits and assistance to all employees who are either injured or develop a job-related illness as a result of their employment. Benefits may include: medical costs, temporary disability, permanent disability, supplemental job displacement voucher, and death benefits etc (Unknown, 2009). Moreover, compensation is a kind of welfare which employees can get from companies. On the other hand, if corporations focus on the establishment of employees’ compensation program, more and more employees will have the belongingness for corporations. Everyone who is hired by companies wants to have the basic compensation and a company which has a prefect compensation program will easy to manage the diverse employees and promote them to have the good performance.

3.2.3 Democracy in the Process of Management

A key element of the cooperative firms is that the organizational power is related to the individual but not to the capital. Cooperative firms also have a distinctive culture, based on certain principles and values, such as democracy and equity, which are shared and assumed freely by all their members. It could be possible to identify cooperative members as a part of the human capital of the corporation. A higher commitment from members and employees to the firm may improve the quality of the human capital, an effect that may constitute the basis for the construction of solid competitive advantages (Bruque, Moyano, Vargas & Hernandez, 2006). Therefore, enterprises may encourage employees to convey their own emotion, opinion, and suggestion, and raise the cohesion of company which is useful for the management of diversity. A diverse organization which has high cohesion could promote everyone to performance and the result might be amazing.

4.0 Focalizing Diversity and Response

4.1 Doubt of Diversity

With the development of economy, Cascio (2010, P117)) mentions that diversity is more just a passing blip on the corporation conscience. Over the past few years it has become a major competitive factor for many companies, and something they are proud of. Moreover, diversity becomes the hot issue which is concerned by many entrepreneurs who want to get success in their business. Some entrepreneurs hope to achieve the business of them through the effective management of diversity. But a lot of people will question that what diversity is and what the diversity management is.

4.2 Explanation of Diversity

4.2.1 Respond to What Diversity is

Diversity in this context covers gender, age, language, ethnicity, cultural background, sexual orientation, religious belief and family responsibilities. Diversity also refers to the other ways in which people are different, such as educational level, life experience, work experience, socio-economic background, personality and marital status (Williams, 2001).

4.2.2 Respond to What Diversity Management is

Diversity management is to use a number of activities to manage companies’ workforce. Through the long time study of diversity in the workplace, many specialists have consistently found that organizations that emphasize collectivism in the work environment could see more benefits of workplace diversity than organizations that emphasize individualism (Chatman & Spataro, 2005; Dwyer, Richard, & Chadwick, 2003). It has also been found that an emphasis on teamwork fosters better relationships within a department and can promote identity within the department or organization that moves beyond surface level differences (Jayne & Dipboye, 2004).Through the effective management of diversity to promote the amalgamation of culture, employees were empowered, encouraged, and developed to work as a team, which could let the whole organization have the high morale to ensure the success of company.

Moreover, the cultural background of employees, such as where employees from, and what employees’ religion would affect the relationship between the formation of organizational culture and diversity management perceptions. Furthermore, according to Hofstede (1980), the two dimensions of national culture that could impact diversity management are power distance and individualism. Countries high in power distance are characterized by a general understanding that power differentials are “normal and legitimate.” Someone reasoned that the effect of involvement culture on the perceived management of workplace diversity would be stronger in countries characterized as low power distance and high collectivism. Low power distance countries, such as Canada, Australia, New Zealand, Sweden, Germany, United States, or the United Kingdom, would see stronger effects of involvement on workplace diversity perceptions than high power distance countries, because there would be less barriers present in the workplace that would interfere with integrating diverse employees. Comparatively speaking, countries high in collectivism, such as Malaysia, Chile Ecuador, Brazil, Pakistan, South Korea, Thailand, or Hong Kong should see stronger effects of involvement on diversity perceptions than individualistic countries because of the emphasis on inclusion and team work (Hofstede, 1980).

5.0 Company’s Policy to Emphasize the Management of Diversity

5.1 The Importance of Management of Diversity

Perhaps the most appealing argument made to most businesses is the issue of cost. By managing a diverse workforce well, organizations are increasing their ability to address the needs of a more diverse customer base. Another benefit of having many different viewpoints in an organization is an increased level of creativity and problem-solving ability. Instead of every individual bringing the same backgrounds and perspectives to the table, organizations are able to come up with more innovative solutions and ideas to tackle various matters (Konrad, 2006). Lastly, not only does a diverse workforce appeal to top industry talent, but it also attracts customer patronage from those who prefer to buy goods and services from such organizations (Konrad, 2006; Robinson & Dechant, 1997).

The mismanagement of diversity in the workplace is also seen to have a number of effects on company costs. Robinson and Dechant (1997) have shown that there is a positive relationship between an employee’s attendance, dedication, and job performance and their perceptions of being valued and cared about by their organization. If management and team members fail to value women and minorities, company productivity will likely suffer as a consequence. Also, companies who do not support diversity within the workplace are more likely to be susceptible to costly lawsuits and out of court settlement, due to poor management of their diverse talent pool. The following shows the several institution of GE Company and how it manages diversity.

5.2 Activities to Emphasize Management of Diversity

5.2.1 Employment Policy

GE is an international company and it has its own policy about employment. GE Company minutely classifies the level of the employees who GE wants to hire. For instance, professionals, experienced applicants with high educational background, experienced applicants or normal labors have the different pay out and put them on the different position. Thus, it fully presents the idea of “what person does what matter” and it also represents the value of individuals. Moreover, when first time they are interviewed by GE, GE will have work out the different development plan in observing them. In the views of GE, it needs diverse staffs, but it will have the systemic development plan for most employees to manage the diverse workforce within the organization (GE Official Website, 2010).

5.2.2 Training and Educational Programs

Because of the employees from different educational background, in order to meet the needs of company’s development, GE Company encourages staffs to go for some training and educational programs to improve themselves and when they get higher certifications and abilities, they will have the chance to improve the position of them. For example, GE sometimes will send its employees for training programs due to the lack of technique. To analyze this action, firstly, GE could foster the professional knowledge of employees which is useful for the development of company, on the other hand, the employees will have the relevant skills which could convince other staffs and let company have more harmonious. As a result of the complicated which is brought by diversity, this benign competition may effectively avoid the appearance of conflict (GE Official Website, 2010).

5.2.3 Performance Management

Think of performance management as a kind of compass, on that indicated a person’s actual direction as well as a person’s desired direction. Like a compass, the job of the manager is to indicate where that person is now, and to help focus attention and effort on the desired direction (Cascio, 2010, P 330). Through the correct indication, GE encourage employees show themselves in the daily work, and promote them have the positive performance as far as possible. Because of the complex of diversity, GE’s high level management managers utilize the right indication to educate their subordinates could not use the methods which is illegal to perform within the organization. And the only way which someone wants to promotion is to show the performance in the daily work. The strict performance management system help GE smoothly manage diverse workforce (GE Official Website, 2010).

6.0 Control of Intergenerational Conflict

6.1 Overview of Intergenerational Conflict

Intergenerational conflict might compromise the performance of corporations. Organizational diversity poses challenges to traditional ways of managing (Dobbs, 1996; Kandola & Fullerton, 1994; Liff, 1997) and organizations that fail to deal with diversity in their workplaces face the likelihood of intergenerational conflict (Steane & Christie, 2001). In the case of intergenerational conflict, the concept of functional antagonism is an important one (Chatman & Flynn, 2001). It describes an inverse relationship between the salience of different social categories that as generational differences become more salient, and groups will focus more on their differences than on their similarities. They argue that when this occurs, groups will be less likely to acknowledge and act in accordance with factors that tie them together.

6.2 Reasons cause Intergenerational Frictions

6.2.1 Gap of age

A big part of intergenerational frictions is caused by different age. The employees who work for firms for a long time with a biggish age will be given a name as “senior staff”. In contrast, if someone just graduates from university and devote to work, she or he will be given a name as “green hand”. Due to the gap of age, “senior staffs” usually do the task with the attitude of conservativeness that can ensure the safe of retirement, and “green hand” always handles issues with the active manner that might help them to represent themselves and get the chance to promote. Consequently, the different measures of dealing with task between these two groups of people may cause the conflict within organizations.

6.2.2 Amour-propre of individuals

Because everyone has own amour-propre and everyone has own end line, when individuals feel their amour-propre suffer damage, they will uncompromising recalcitrance. For example, “senior staffs” always recognize that they have rich experience about their jobs and always doubt the ability of “green hand”, “green hand” will consider that “senior staffs” are damaging their amour-propre and let them lose the confidence for their jobs. Through the long time accumulation, when the “green hand” feels they cannot endure the “senior staff” any more and the “senior staff” is already over the end line of him or her, he or she will erupt as volcano. In this situation, friction cannot be avoided.

6.2.3 Personality

Each person has own characteristics of personality, so someone easy to get angry and someone has favorable temper. For instance, an elder employee teaches a rookie how to deal with the daily work, and the elder employee has irascible temper. In such a case, if the rookie has a small mistake, the elder will be easy to get angry with him or her, sometimes excessively use some methods which could not let people accept, such as vituperation, and punishment. Firstly, the rookie will feel this teacher is so strict, but if the rookie receives the negative feedback from his or her mentor for a long time and with the accumulation of spleen, the rookie will fight with this elder staff. At the end, the “fierce fight” is unavoidable.

6.3 How to Handle the Intergenerational Frictions

6.3.1 Effective Communication

Communication is one of the effective methods of management in any organization and most of organizations are pay attention to establish the effective communication among the members of organization. It is a process of transmitting ideas, thoughts, information, plans and opinions between several parts of an organization (Thomson, 2009). Due to it is possible to get intergenerational frictions within the organization, so companies should encourage members within organization communicate with each. Once the effective communication is created among employees, they will be willing to comprehend others and corporations could efficaciously maintain the harmonious situation, which may reduce the frequency of intergenerational frictions.

6.3.2 Job Rotation System

There are many reasons for implementing a job rotation system including the potential for increased product quality, employee satisfaction and lower cumulative trauma disorder rates (MacLeod & Kennedy, 1993). In addition, job rotation system can effectively decrease the appearance of intergenerational conflict. As a result of the existence of job rotation system, the employees will not be arranged to an immovable workplace which could limit the formation of conflict in organization. Whereas, it still gets chance to have conflict in organization, but the conflict is normally snuffed by job rotation. Because employees do not have enough time, so they might not become enemies with each other such fast. Moreover, job rotation system could promote employees to learn a lot of extra knowledge and let companies have more competitiveness.

6.3.3 Downsizing

Many scholars mention that downsizing is the process of reducing the size of the organization, and downsizing is also something intentionally taken place by the organization, because of improvement of benefits and profits(Budros, 1999; Cascio, 1993; Mishra & Mishra, 1994). Several intervention of downsizing can be used within the organization, such as layoff, early retirement, outplacement, and so on. Even though downsizing is a part of companies’ strategy, when firms implement their plans of downsizing, a lot of resistance will appear in the organizations. But in case of emergency, conflict seriously affects the daily operation of companies, even the organization could not normally work, so the company has to implement downsizing to quench conflict because downsizing is the most directly measure to remove the frictions within organization. According to company’s strategy, company should remain the employee who is advantage to the development of company, and downsize another “murderer” of conflict to foundationally resolve the emergency of company. But downsizing is a measure which may face a lot of resistance, so companies should carefully deal with it.

7.0 Realities Oppose to Manage Workforce Diversity

7.1 Disadvantages of Workforce Diversity

7.1.1 Increase of Conflict

One of the disadvantages of workforce diversity within organization is the increase of conflict. Conflicts might appear when several people or groups want to protect their own benefits to fight with each other in some particular situation. In the process of management of diversity, the appearance of conflicts is due to ignorance. Derogatory comments or prejudice feelings may cause that employees within organizations could not accept each other. This might form the negative impact such as culture clashes, stereotyping, and ethnocentrism (White, 1999). If companies ignore such conflict in the process of management, the performance of companies may suffer (White, 1999). Moreover, the conflict might serious or slight. The slight conflict may cause that the relationship between companies and employees are not friendly, and employees are under-performance. The serious conflict might cause the complete burst of relationship between staffs and companies. In this situation, strike might appear in organizations which may damage the daily operation of companies. On the other hand, if the conflict can be properly managed and controlled, staffs are willing to contribute their own value in the organizations, and companies may get more benefits from them. In fact, diversity might increase the conflict within organizations if companies are not carefully managing it.

7.1.2 Increase of Cost

Another negative effort which is brought by diversity is that companies should pay more on training their diverse employees. As a company which wants to achieve the diverse workforce in its organization, some training should be supported, such as programs, lectures, and seminars. Training may support every employee which could ensure him or her to sustain the performance in daily work. Training programs can help employees learn or improve their skills to meet the needs of the development of company. Because of employees from the different educational background or working experience, companies should classify the abilities of them and use some budget to train them and let them have enough skills to perform their jobs (White, 1999). For instance, companies have their own budget for some task, and they might not have enough funds which can support their employees to go for training. On the hand, due to workforce diversity, there are many staffs from different cultural background, and abilities, and need necessary training to coordinate with task. In this situation, corporations have to increase their budget to meet the needs of task, and this action might bring extra pressure to companies. In contrast, if companies do not have such diverse workforce, they might more easier to get success with the low cost, which they can be in accordance with their own conditions to choose the suitable task.

7.1.3 Increase of Labor Turnover and Absenteeism

Last but not least, diversity could also bring the increases in labor turnover and absenteeism. Data shows that the turnover rate for African Americans in the US workforce is 40 percent greater than whites. Another study by Corning Glass stated that between the years 1980 – 1987, the turnover rate for women in a professional job was two times higher than males. Women also have a 58 percent higher absentee rate than men. Yet, another study shows that a person, who is not a member of the “inner group”, will be one of the first to leave a company (White, 1999). Some research contradicts the idea that flextime reduces these rates. However, absenteeism and turnover can cost a company up to and over $3 million annually (White, 1999). Thus, personality determines whether they have the sense of responsibility to their jobs, but different people have different perspective for issues and high rate of the turnover and absenteeism usually appear in the organizations which have diverse workforce. To the position of companies, the suddenly turnover and absenteeism might cause the barriers of daily operation and the temporary chaos. All in all, workforce diversity increases labor turnover and absenteeism in organizations.

8.0 Conclusion

Diversity is the hot issue which is concerned by many companies all over the world. In today’s economic environment, most companies can survive because of the help of workforce diversity. A lot of entrepreneurs clearly recognize the benefit which is brought by diversity. On the other hand, even though diversity is the trend of development in today’s life, but many firms are defeated because of some fault in the process of managing diversity. Hence, in the case of diversity, the pressure and competition to companies are not only external, but also internal. Due to the process of diversification of organizations including six stages: denial, recognition, acceptance, appreciation, valuing, and utilization, many people believe that companies should follow these six stages in the implementation of their strategies to improve the effectiveness of managing workforce diversity. To sum up, it is not diversity itself to determine the success or positive consequence of firms, but how companies effectively manage diversity determines the results. Managing diversity in corporations is absolutely dependent upon the acceptance of some primary objectives to which employees are willing to commit, such as the survival of the firm. In today’s fast-paced work environment a successful organization is one where diversity is the norm and not the exception (Lawrence, 2001).

In terms of diversity, companies which want to utilize it should be careful to the negative parts which are caused by diversity. Due to the diversity could bring a number of advantages (competitive advantages, creative ideas, and synergy) which might help corporations get success, so firms always could not see the disadvantages of it, which may directly cause the difficulties to them. It is not simple that as long as the company has diversity, it will get success in the range of business. Furthermore, diversity need come with other activities, such as the matching between employees and organizational culture, the compensation of employees and democracy in the process of management. After that, the company could see the business performance. In addition, corporations should have relevant policy to emphasize the management of diversity, such as employment policy, training and educational programs, and performance management. Therefore, companies should predict every negative issue which may happen in the process of managing diversity, such as the intergenerational friction. Corporations should use some measures to avoid the appearance of internal friction, such as effective communication, job rotation, and downsizing (in the case of emergency) to ensure successful achievement of companies’ goals.

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