Research Paper (undergraduate) from the year 2016 in the subject Business economics - Personnel and Organisation, grade: 1,3, AKAD University of Applied Sciences Stuttgart (BWL), course: FGI03 Leadership, language: English, abstract: This assignment will determine the effects of diversity on the performance of teams. First, "diversity" and "inclusion" will be defined, with an emphasis on the distinction between tolerance and affirmative action on the one hand and the appreciation of diversity as a potential benefit on the other hand. Afterwards, the opportunities and challenges that diversity brings to teams will be discussed. Since diversity tends to be a "double edged sword," this assignment will analyze under which circumstances diversity can improve the success of teams and on which terms it tends to be a hindrance. Afterwards, the example of the IBM will be used to show how diversity can be turned into a value to the company successfully. Over the past decades, the population in Germany and other Western European countries as well as North America has become more and more diverse. This is increasingly reflected in the workforce of most organizations. Moreover, the percentage of women entering the labor force has risen substantially. Greater diversity is also inevitable due to enhanced mobility, which is driven by both political developments such as the E.U. expansion and less restricted labor markets as well as by economic developments such as the internationalization of business practices and markets.