Globalization as a process that requires interaction of individuals and organizations created a new environment for companies in a way that diverse populations demand intercultural dialogue and the commitment from top managers to create and manage diverse workforces in all areas of their businesses. With this phenomenon people became more open-minded in accepting differences in all its forms in everyday lives as well as in marketplace competition.It is well known fact that human capital is one of the most important factors for any organization since it forms the engine that drives that organization. Diversity can be defined as acknowledging, understanding, accepting, and valuing differences among people with respect to age, class, race, ethnicity, gender, disabilities, etc. (Esty et al., 1995)Diversity can be classified in two main dimensions: primary and secondary dimension. The primary dimension classifies individuals based on criteria such as age, gender, sexual orientation and so on. These differences are easy to notice and can serve as a filter how individuals see the world. Secondary dimension of diversity such as education, religion, geographical location or income represent those differences that are not noticeable on the first sight and they are only possible to be noticed when some interactions between individuals occur. (Ashton, 2010)Diversity on workplace can be a problem to organization but also a solution, it can be an advantage but yet again a disadvantage if not managed and understood properly. By managing and supporting diversity at the workplace, organizations create an inclusive and harmonious environment which enhances good reputation of the organization with people seeking jobs hence able to attract the best workers in the market. While working in an organization that manages diversity employees feel motivated, rewarded and valued. However, managing diversity is not a simple process. It requires understanding the value of differences, combating any kind of discrimination in workplace and promoting inclusiveness. (Green et al., 2015)Some of challenges that companies may face are: Communication – language is one of the common barriers for companies to overcome in order to avoid confusion, ineffective teams and low morale.Resistance to change – there are always employees who resist to change or accept the fact that work environment in company is changing. Implementation of diversity in the workplace policies – implementation of diversity strategy is significant challenge for companies but yet again a crucial obstacle to overcome in order to maximize benefits of diversity.Successful management of diversity in the workplace – an organization has to create culture of diversity that permeates every department and function of the organization (Greenberg, 2014)Company’s executives play a key role when it comes to taking advantage and benefit from diverse teams. They have to understand the consequences of discrimination on workplace as well as to recognize their own cultural biases and prejudices.Following seven steps are showing how diversity should be managed in workplace:Develop a recruiting strategy that emphasizes the need for diversification Provide employee trainingProvide training for management stuff Invest in cultural sensitivity training for all staffConduct periodic feedback from stuffEncourage open communication and teamwork across work functionsBrake down formal barriers and improve employee morale. (Wambui et al., 2013)Every company should take an advantage of diverse teams as they bring a high value to organization. Diversity management crates a safe and fair environment for employees where everyone has an access to opportunities and challenges. Diversity in workplace is reality and organizations need to learn how to adapt in order to create a value and be successful in areas such as problem solving, corporate image, and marketing.