Managing diversity aims to encourage productive interactions among employees from diverse backgrounds by providing an optimal work environment and business results. Diversity refers to differences in qualities beyond just ethnicity, race and gender, including work experience, education and more. Managing diversity means promoting inclusion and community despite these differences. Managers play a key role in guiding diversity to benefit innovation and inclusion through practices like diversity training. Strategies for managing diversity include developing inclusive recruitment and policies, cultural sensitivity training, and seeking employee feedback. Workplace diversity can provide benefits like improved morale if properly managed, and ignoring diversity issues risks costly consequences.