Diversity is generally defined as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status (Esty, et al., 1995). Diversity issues are now considered important and are projected to become even more important in the future due to increasing differences in the U.S. population. Companies need to focus on diversity and look for ways to become totally inclusive organizations because diversity has the potential of yielding greater productivity and competitive advantages (SHRM, 1995). Stephen G. Butler, co-chair of the Business-Higher Education Forum, believes that diversity is an invaluable competitive Archival copy: for current recommendations see http://edis.ifas.ufl.edu or your local extension office. Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools 2 asset that America cannot afford to ignore (Robinson, 2002). Managing and valuing diversity is a key component of effective people management, which can improve workplace productivity (Black Enterprise, 2001). Demographic changes (women in the workplace, organizational restructurings, and equal opportunity legislation) will require organizations to review their management practices and develop new and creative approaches to managing people. Changes will increase work performance and customer service. summarize only