There is no doubt that the business world is changing rapidly and many factors are interacting simultaneously. These factors are perhaps created by cultural diversity. The online dictionary http://en.wiktionary.org defines diversity in the social context as a business strategy encouraging differences in order to compete in a market with a heterogeneous customer base. Diversity in the general population, workforce, and marketplace provides many benefits to organizations. Global managers are gaining more knowledge about internal diversity to maximize the efficiency of their workforce and increase their company's profit margins. The diversification of the American workforce has changed the way managers interact with their employees. This diversification is partly due to tightening labor markets, increased immigration and the entry of women into the workforce. Cultural factors, never before present, have led managers to develop new methods of assigning tasks, motivating and educating these diverse employees. These new methods have essentially consisted of a change in interpersonal behavior or in the way a manager acts and reacts towards his employees. This behavioral change was necessary to increase productivity and maintain a competitive advantage in the market. Culture is an organized system of learned patterns of behavior, always manifested in a group, making that group distinct from other groups. This definition contains the key element of what culture is; a system of behavior distinctive of a particular group of people. These behaviors range from cultural norms to religious beliefs. In business, an organization's effectiveness relies on management's ability to interact with its employees and motivate the world...... middle of paper ...... such as accurate interpretations, expectations Formal interactions and positive reinforcement can improve the relationship between manager and employee. Diversity in business today is inevitable. Due to labor markets, immigration and the increase in the number of women in the workforce, managers must develop new strategies and behaviors to effectively manage these diverse workers. As people from different cultures enter the workforce, organizations must take advantage of this labor pool. Not only does this resource address declining workforce growth, but it also gives the organization a different perspective in the industry and will potentially attract new, diverse clients. Managers who change their interpersonal behavior towards diverse employees and learn to understand the cultural differences among them will undoubtedly increase their productivity and gain a competitive advantage in the marketplace..