Final answer:
Diversity management helps firms attract and retain top talent by fostering a positive work environment and broadening the range of perspectives and skills within the company, which can lead to improved financial performance and innovation.
Step-by-step explanation:
One of the main benefits of diversity management is that it helps firms attract and retain the best available human talent. This occurs because businesses recognize that a diverse workforce brings new perspectives, fosters a positive work environment, and encourages innovative solutions to problems. Additionally, having a diverse staff can improve a company's ability to understand and penetrate broader markets as it reflects a wider range of customers.
Professionalizing human resources functions is also essential, as it may reduce bias in the hiring process. Research shows that a diverse gender mix within teams can lead to improved performance outcomes like higher sales and profits. Consequently, having a diverse team can actually strengthen a company's bottom line by leveraging a variety of skills and perspectives.
Although diversity management may not necessarily eliminate communication barriers, it does create an environment where prejudice is mitigated through controlled and supportive group interactions promoting equality, common goals, and cooperation.