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This paper takes the stance that there are two criteria for evaluation of diversity in organizations. These criteria are (a) competition with other organizations and (b) the maintenance of the organization across time. Organizations which seek diversity without considering its effects on competitive and maintenance goals place themselves at a disadvantage vis‐a‐vis their competitors. Two case examples, the Persian and Roman Empires, are used to show how different diversity management practices affect organizations. Differences between the two empires are related to the degree to which they allowed for inclusion of diverse cultural groups. The Persian Empire was exclusionary. The Roman Empire was inclusionary. Roman inclusionary practices were based on merit. Inclusion by merit is shown to lead to increased organizational effectiveness primarily in terms of increased organizational resiliency across time.

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