Understanding individual diversity is a difficult and challenging task. It has led to many researches, studies, arguments, and dialogues between philosophers and intellectuals. Unfortunately, an induced definition or understanding of individual diversity has not been presented and is still warranted. The demographic variations in the workforce, alterations in organizational structures, and competitive business landscape have all contributed to the element of diversity (both inherent and acquired) in the workforce and has made it customary in contemporary organizations. This paper is aimed to discuss the magnitude of individual diversity and how it has a direct impact on the organizational behavior by providing different examples. Moreover, after presenting a thorough understanding of diversity various organizational practices have been discussed, which could help to enhance business operations and organizational behavior. Individual diversity can be explained as the distinctiveness or the presence of characteristics that are different from each other. In any organizational setup, diversity is witnessed at every level from task groups / junior employees to board of directors. It is argued that individual diversity in any organizational setup affects the outcomes of organizations; it reduces employee turnover and increases the performance. Outlining the approach through which the distinctive orientation of individuals both in minority and majority affects groups’ working and operational outcome of companies. This activates the relational identity distinctiveness and can result in eithers benefits or disadvantages based on the management of issues (Kinicki, 2008). At times individuals encounter issues and challenges in group settings. Communication is an important aspect of managing diversity, which generates negative outcomes in case of poor communication within organizations. Individuals belonging to different cultures often encounter issues of language barriers and lack of interaction with their team members. Some of the issues related to communication diversity include differences in individual perspectives, cultural backgrounds and understanding, knowledge, and designation levels. All these issues are countered in a diversified organization (Tosi & Pilati, 2011). To deal with the issue of diversity, effective management is very essential. Some individuals add to inherent diversity, while others have acquired diversity. Factors such as age, ethnicity, race, sex and capabilities fall under inherent diversity, while on the other hand, location, income, education, seniority and marital statuses fall under acquired diversity. In order to diminish the issues of communication managers and leaders should hold different interactive sessions for the workforce so that they get to know each other and communicate with each other. The leaders should directly communicate and sort out issues of members, which will increase productivity and boost employees’ morale (Kinicki, 2008). It depends on managers and executives how they handle diversity and how they formulate effective strategies, which can yield positivity out of the diversity. In almost every organizati