The development of the world economy and international business has brought challenges to managers they did not face while their business operations took place within the borders of their states. They deal with different legal political systems, economic climates and tax policies. Also, they need to learn how to work within different cultures, customs, and values that represent a particular country. Managers are faced with the question that is the topic of this thesis how to manage the diversity of the labor at the workplace? Man is an essential resource for an organization and that is why its importance is described at the beginning of this paper. The meaning of diversity is then explained in more detail, including diversity related to ethnic or national affiliation, gender, language, religion, lifestyle, culture and other abilities of the employees of an organization. This presents great challenges for the company that wants to work on increasing their competitiveness by introducing diversity as a standard at the workplace. The employees' motivation behind that decision is explained in the continuation of this paper. This paper also includes the explanation of the process of hiring people with diverse background and the importance of managers in that process. All of the above needs to be measured in the business world and that is why organizations make measurement plans. As theory is related to practice, the paper is concluded with an example of the performance achieved by increasing diversity in the workplace.