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Today, human resource management is being renewed in organizations and is gradually affirming its strategic role. The need for highly qualified managers will increase as more organizations globalize their operations. The research presented in this paper highlights the need for management who are sensitive to the concerns of multicultural employees. The effects of cultural diversity on organizational behavior are complex and powerful. Within this perspective, the definition of diversity in the USA and the goals in achieving a more diverse workplace will be discussed. This paper will also examine the different facets involved in managing and developing a diverse human resource base. Organizations take into account their human resource base before hiring employees. One factor they look at is the possible advantages and disadvantages of a multicultural and diverse organization. This paper will examine ways by which managers and employees can learn about diversity, understand it, and respect it on a day‐to‐day basis when dealing with people from other diverse backgrounds.

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