This paper shows that what are the positive points of diversity management and how diversity management enhances the performance of the individuals as well as the organization. It will develop the skills which are essential to managing a workforce team. In this article, we will study how a diversified work team enhances the productivity of an organization and how we can mitigate the hazards of diversity. .Organizations are formed with a major aim to earn profits but to earn profits, dedication and hard work is required, apart from compelling the employees to do the work. Management or the managers are supposed to manage their employees and their work in a professional manner which is ethical and appreciable as well. Proper management will ultimately increase the performance and motivate the employees because according to Steven Kopin self-motivated employees are more productive and dedicated rather than the unmotivated ones. The most important human activity is managing. Ever since people began forming groups to accomplish aims they could not achieve as individuals, managing has been essential to ensure the coordination of individual efforts. As society has come to rely increasingly on group effort, and as many organized groups have become large, the task of managers has been rising in importance. The aim of all managers is the same: "to create a surplus". Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected items. Management is essential for any organization for creating its value in the long run. Managers are charged with the responsibility of taking actions that will enable individuals to make their best contribution to groups’ objectives. Management thus applies to small and large organizations, to profit and for a not-for-profit enterprise to manufacture as well as service industries. The term enterprise refers to a business, government agency, hospital, university, and any other type of organization.