The Influence of Diversity on Organizational Effectiveness

The study is conducted to investigate the diversity of personality’s effect on organizational effectiveness and why diversity is important to business results. It, moreover, examines how they deal with challenges that appeared with employees from myriads of personality for adding value, creating the competitive advantages for organizations, and finding the bottom-line impact of diversity in the organization.Design/methodology/approach: We relied on a variety of methods to obtain understanding through the sources that we encountered from qualitative and quantitative data of 80 respondents from Czech and Indonesia. The research applied snowball sampling method which data was gathered from 5 interviews of top management level. The prevalent complementary data sources included organizational records and journals.Findings: The result indicated that workplace diversity played an effective role in some companies. The ability to innovate for managing diversity is vital to the survival of modern organizations in building a potent internal capital foundation towards the business challenges. There must be a regular improvement in ways to effectively manage a diverse workforce as the world keeps advancing through to adequate mentoring and guidance. Small-scale companies perceived it as a prudent and evitable alternative when they experienced it an impediment or unsuccessfully manage it.Research/practical implications: The significance of teams in the successful functioning of the modern organization becomes a prominent capital for an organization to strive for the drawback of maintaining an impregnable competitive position in the business market. Originality/value: The paper fulfils an identified utility to study how the diversity of personalities in team composition contributes to innovation at the project level in the organization.