diversity has become widespread within many organizations across the globe
today. Cultural diverse work groups present challenges to the organization and
to managers who did not receive training in diversity management. However, if
managed well it can yield many advantages, such as developing employee and
organizational potential to achieve the desired success of the organization. In
this paper the management of cultural diversity is discussed with the focus on
the main issues: people management and knowledge management. In order to
optimize the positive outcomes of the modern workforce, Information Technology
(IT) is the only relevant tool. Using appropriate technologies is shown to
break down cultural barriers and promote understanding and knowledge sharing
between employees of different language backgrounds and hence lead to
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