This paper discusses the managerial challenges and opportunities resulting from the change in the U.S. workforce from one composed of predominately white males to one increasingly composed of females, minorities, and immigrants. It notes that managing people from different cultures whether at home or abroad is receiving a good deal of attention from business students, business educators, and directors of human resource development. Presented is a model that describes the development of intercultural sensitivity in an individual from the lowest stage, that of denial of any cultural differences among peoples, to the highest stage, that of the person who has fully internalized bicultural or multicultural frames of reference. Also examined is a model describing the five stages of multicultural organization development from complete monoculturalism (stage 1) to a position that is inclusive of and values diversity (stage 5). The paper concludes with the observation, based on the results of various studies, that heterogeneous groups perform significantly better on complex tasks requiring creativity, innovation, and problem solving; and that such mixed groups, when well-managed and prepared, consistently outperform homogeneous groups in terms of both quality and quantity. Contains nine references. (GLR)