All members of organizations take part in creating a climate in which all people are treated fairly and can achieve and contribute to their full potential, and where diversity, as an organizational resource, can be fully leveraged to enhance organizational performance. This book was designed to assist individuals and work teams in developing personal and organizational competency to manage diversity. Following the introduction, the book is organized into three major parts: (1) foundations for competency; (2) developing individual competency; and (3) developing organizational competency. Part 1 presents readings and activities to develop an understanding of the meaning of diversity and the importance of managing diversity for organizational effectiveness. Part 2 offers readings, cases, and activities to develop individual competency by understanding and changing behaviors related to stereotyping and prejudice. The third part offers readings, cases, and activities to promote an understanding of organizational culture, organizational change, and continuous development. Twelve exhibits, 11 tables, and 17 figures are included. (Contains 212 references.) (LMI)