Every company needs to embrace differences of people from various backgrounds. Everyone has strengths and weaknesses in their work ability and personalities. A manager that can pick out associates strengths and use them to benefit the rest of the workplace has taken a huge step in unifying their company. Using the diverse backgrounds of each associate properly will add tremendously to the challenge of a business. The different ideas and solutions that each persons brings to problem solving meeting, the better equipped the team will be to conquer tough opportunities with an array of different outlooks. This essay will attempt to clarify managers’ work that is beneficial or not in a diverse work environment and how the effective manager can cope with all the possible challenges using to examples. The diversity concentrates on the multiplicity of differences among people-on the variety of people as heterogeneous groupings. Nowadays, there is a greater attention to the concept of managing diversity that relates to many reasons such as demographic changes in the workplace, changing social attitudes, a more global environment and increasing internationalisation. (Mullins, 2011) If a manager creates a positive work environment, empowering all people to reach their full potential, he will gain possible benefits of this effective diversity management program. For instance, to improve organisational performance, problem solving and workplace relations and build more effective work teams can lead to beneficial results for the organisation. Team is a small number of interdependent people who are committed to a common purpose, performance goals and approach for which they hold themselves mutually accountable. (Knights and Willmott,2007) Manager should coordinate staff activities in order to accomplish organizational goals using effective teamwork. People’s behaviour and performance are the most significant factor for becoming an effective team. Empowerment, quality circles and total quality management and how groups manage change are the examples of an effective team in the modern management practice. There is a greater emphasis on working relations and effective team work, because increasing competitiveness, performing faster and more profitably than competitors are need in any organisation in which there is multicultural and diverse workforce.(Mullins,2011) Multiculturalism means the acceptance and promotion of people of different racial and ethnic backgrounds. However, diversity broadens this view to include promotion of people from different backgrounds and of various abilities, religions, sexuality. Having a multicultural and diverse workforce that reflects a company's values and customer base is smart business.(ehow,2013) Taking into account facts mentioned previously, managers should take several responsibilities to manage workers for creating right balance in the diverse workplace. From this point of view, improving productivity and quality, encouraging innovation and developing employee motivation and commitment can be the measurements of managers.Leadership skill is also one of the important