There are many factors that contribute to an organization’s success. One area of interest for organizational researchers and corporate managers alike that has been gaining popularity is the effect of racial-ethnic diversity on performance. Can multiculturalism in the workplace, if managed well, provide a competitive edge and be an asset to organizations? Or, as some have feared, will it prevent cooperation and be a corporate encumbrance? My research review will explore the nebulous relationship between multiculturalism and performance, and attempt to reconcile some of the varying points of views, in order to suggest practical implications for managers in the workplace. Keywords: Performance, Diversity, Immigration, Multiculturalism, Cultural diversity, Racial-ethnic diversity Paper type: Research Paper