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The concept of diversity has been hailed as the necessity for the organizational prosperity and growth, the potential economical impacts of diversity include; greater access to different perspectives and sources of knowledge; the increased level of understanding of diverse groups of existing and prospective customers, the improved legitimacy in a wider business community, the increased cases of conflicts amongst the workforce, the poor internal communication and increased management costs, ethnic diversity is associated with better team outcomes on creative and problem solving tasks.
In the economic production sector, (Riordan & Shore, 1997) states that the impacts of ethnic diversity was significant and positively related to workgroup productivity which is a very good measure of the actual productivity, however, ( Zhuravlyov, 1985) states that ethnical diversity in groups mostly is associated with lower performance expectations than the homogeneous groups. Therefore, the available evidence suggests that ethnic diversity is beneficial to the business performance as compared to the homogeneous groups.
Ethnic diversity is always related to very slow economic growth; this is attributed to the fact that diversity is associated with numerous economical poor policies. Diversity, in some cases can make it very hard for the policymakers to reach cooperative solutions to problems instead of making engagement in a zero-sum games.
Ethnic diversity reduces the effectiveness of city government in the efforts of delivering a range of the public services. Diversity is described as the cause of an increase in rent seeking while decreasing lowering the expenditure on productive public services. If there are no restrictions, then the kin groups will function as the patronage systems. The ethnic diversity causes a reduction in the efficiency of the public service delivery and the inferior macroeconomic policies. Diversity causes the undermining of the economic performance through the inhibition of the development of the social capital and trust, there by raising the transactions costs. Diversity leads to ethnic fractionalization, which accelerate building of trust within the ethnic groups. However, the effects to the society as a whole have not been investigated (Barbara & Jossey, 1993).
Diversity Impact Political Considerations
The democratic aspect has the potential to fully discipline the governments into delivering of the reasonable economic policies and to provide a conceptual framework in which the groups can have mutual negotiation to benefit the outcomes. In summary, all the variables are significant; thereby democracy leads to higher growth while fractionalization and diversity leads to a lower growth. Ethnic diversity appears to be very detrimental; the most diverse society grows about 1.6 percent represents a lower figure to the homogenous society and ends up with a steady-state income about a fifth of the homogeneous society.
At higher risks of oversimplification, performance politics are differentiated from identity politics. The performance politics have the political system helping to improve the economic policies. The cooperation and the development of the social capital facilitated, and some of the governments that deliver poor economic performance are punished while those ones that deliver good performance are rewarded by the citizens who are the voters. The issue of the identity politics by great contrast will emphasize on the differences among the citizens, this limits the cooperation and the development of the social capital in the population. Most of the citizens in such a case opt to remain loyal to their party regardless of the economic performance, and the government will tend to deliver the patronage to those who tend to be the loyalists rather than give the services to the median voter.
Diversity leads to democracy which provides institutions in which potentially and costly disputes between the ethnic groups can be mediated. The cooperation is easily achieved in the homogenous societies that do not require any democratic institutions, whereas in the ethically diverse societies these types of the institutions may mean the difference between the zero-sum and the cooperative solutions. Thus an ethically diverse society might gain more from democracy than a homogenously composed society due to the fact that a homogenous society has less need for the dispute resolution (Murthy, 2009)
The diversity of the political decision-making is endogenous to the established political boundaries. The decentralization offers the possibility in the decision of shifting certain economic decisions into the different ethnic space. In most of the cases where a country has the identity politics as a result of diversity, this type of politics normally dominates the national level due to the presence of very little ethnic diversity at the local level. However, due to the largeness of the national boundaries compared to those of the ethnic groups, the local politics will be more likely to be the performance politics. In case of the ethnically undemocratic diverse society, there is a higher possibility for the project failure. Ethnic diversity is very important and has a characteristic quadratic relationship with the consistently significant results.
Behaviour in the same situations
The human beings are born in into different sociological and the cultural settings, In addition to these circumstances that people are born, they voluntarily and willingly join the groups based on the shared occupations, different beliefs, and the interests (Chibueze, 2003). The Membership that is established in these here influences the thinking and personal examination of one's self and the way others view them. These groups also impose some kind of expectations and the rules that always make the member's behavior to be more predictable and thus enabling each group to smoothly exist by retaining its identity. The rules set can be informally and conveyed through the examples, in such a way as how one should behave at any social gathering or their may also be laid down rules with strict enforcement. The Formal groupings always define the of behavior that they prefer by rewards and the punishments.
The affiliations with a social group, whether it is voluntarily done or one is born into it, leads to some type of advantages that are of larger numbers.
The potential to pool together the resources, the concerted efforts, the identity and the overall recognition. Within each of the groupings, the attitudes of the members, which in most cases include the image of the group serves as source of superiority to others; it helps to ensure the cohesion within a given group but also leads to a very serious conflict between the groups. The Attitudes towards the other groups involves the stereotyping and the treatment of all the other members of a group as if they are the same and the perception in the people's actual behavior. It is only those qualities which seem to fit with the observer's imagination and preconceptions. Such kind of the social prejudice include a blind kind of respect for some of the categories of people, such as the doctors, the clergy, as well as giving a blind disrespect to other categories of people who are mostly foreigners or women.
The behavior of a given group cannot be aggregated and solely understood as the type behavior of some individuals.
A person can behave in a very different manner while in a crowd, than when one is alone or with other family members The group kind of situation can provide the rewards for the companionship and the kind of acceptance following the shared action of the group and what makes it very difficult in the assignment or blame or credit to any one person. The Social organizations may be able to serve many purposes even beyond what formally exist. The Private clubs which exist for the recreational purposes that can be important places for the purposes of engaging in the business transactions.
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