Purpose The purpose of this study is to identify the causes and benefits of workforce diversity in a Swedish electrical engineering multinational corporation. Furthermore, to identify various challenges faced by the managers in diversity management and to find strategies adopted by them to minimize those challenges. Design/Methodology/Approach For this research qualitative method is undertaken. The research was undertaken in two stages. In stage one, an open-ended questionnaire was used to collect primary data from three line-managers and in stage two focused group discussion was conducted with three employees from HR department. The total sample size is six employees working in a Swedish Electrical Engineering MNC. Findings and Conclusions The nature of the business carried by the studied MNC requires continuous innovation and customization of products, which requires employees with diverse knowledge, skills and capabilities. The causes for diversity in the studied organization are because of encouraging internal movement of employees from various subsidiaries to the headquarters and by using various other staffing practises such as inpatriation, global virtual teams, permanent transfers etc. The company is also hiring employees from diverse jobmarkets. The findings from the primary data shows that the studied MNC is benefited from highly diversified work force. However, there are certain challenges faced by managers in managing diversity. The Diversity 360 policy of the company is helping the studied MNC to overcome the challenges in diversity management.