The 1990s saw the development of a new trend in the form of workforce diversity mainly because of the liberalisation and globalisation of markets (Henry and Evans, 2007). As the businesses are growing and the world is moving toward a concept of global village, the competition among the organisations and industries is rapidly increasing. Also, due to the global economy, the distance among people, different nations, races, sexes etc. are diminishing. In this scenario of high interaction, the existence of any business/economy is dominantly dependent upon not only the optimal utilisation of current available resources, but also on innovation and diversity (Sabeen, 2007). Significant changes in society and in the markets are responsible for the growing workforce diversity. The globalisation process compels organisations all over the world to deal with more international customers and suppliers (Cox and Blake, 1991; Milliken and Martins, 1996). Improvements in transportation and communication, and the change in lifestyles contribute to the growing mobility of people (Kossek and Lobel, 1996). The increased mobility and interaction of people from diverse backgrounds as a result of improved economic and political systems and the recognition of human rights by all nations has put most organisations under pressure to embrace diversity at the work place (Henry and Evans, 2007). The participation of social groups traditionally seen as minorities or disadvantaged groups in the workplace has increased in numbers, qualifications, and influence (Carr-Ruffino, 1996). Women, older people, individuals with disabilities, and people with different ethnic backgrounds, lifestyles, religious faiths, and sexual orientations, are becoming regular players in the labour market (Dass and Parker, 1996). As the economies are shifting from manufacturing to service economies, diversity issues will gain importance because in a service economy effective interactions and communications between people are essential to business success (Wentling and Palma-Rivas, 2000).