http://www.iaeme.com/IJMET/index.asp 398 editor@iaeme.com International Journal of Mechanical Engineering and Technology (IJMET) Volume 8, Issue 12, December 2017, pp. 398–406, Article ID: IJMET_08_12_039 Available online at http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=8&IType=12 ISSN Print: 0976-6340 and ISSN Online: 0976-6359 © IAEME Publication Scopus Indexed A SYSTEMATIC LITERATURE REVIEW OF MANAGING WORKPLACE DIVERSITY FOR SUSTAINING ORGANIZATIONAL COMPETITIVE ADVANTAGE Sri Handayani, Udin Ph.D Scholar, Diponegoro University Jl. Erlangga Tengah No. 17, 50241, Semarang, Indonesia Suharnomo, Ahyar Yuniawan, Sugeng Wahyudi Diponegoro University Jl. Erlangga Tengah No. 17, 50241, Semarang, Indonesia Tri Wikaningrum Universitas Islam Sultan Agung Jl. Kaligawe Raya Km. 4, Terboyo Kulon, Semarang, Indonesia ABSTRACT Objectives: The purpose of this study is to review workplace diversity at literature and to explore how workplace diversity improves employees’ performance and organizational effectiveness. Methods: A systematic literature review is conducted using electronic database searching to find articles that identify and describe the characteristics of workplace diversity and organizational performance. The final sample of 12 empirical and conceptual studies of last 8 years are scientifically identified and synthesized. Results: There are five different perspectives introduced on how workplace diversity benefits employees and supports organizational performance based on the extant literature: (a) workplace diversity promotes work and cost relationship effectively by using the better talent of employees; (b) workplace diversity enhances customer relationship; (c) workplace diversity improves creativity, flexibility, and innovation; (d) workplace diversity reduces the costs associated with turnover, absenteeism, and lawsuit; and (e) workplace diversity promotes development and sustainable business advantage. Conclusion: This systematic review study presents a comprehensive framework for delineating positive impact of workplace diversity for the benefit of practicing managers, academics, and researchers. Key words: Diversity management, benefits of diversity, organizational effectiveness. Cite this Article: Sri Handayani, Udin, Suharnomo, Ahyar Yuniawan, Sugeng Wahyudi, Tri Wikaningrum, A Systematic Literature Review of Managing Workplace Diversity for Sustaining Organizational Competitive Advantage, International Journal of Mechanical Engineering and Technology 8(12), 2017, pp. 398–406. http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=8&IType=12