Diversity Management

Abstract

Although the advantage of managing diversity has been acknowledged by a number of

researches and most managers in organizations, the practices of diversity used to be ignored

or be inadequate. In Australia, the concepts of managing diversity have been introduced for

more than two decades, whereas the overall performance is just about "mediocre". This paper

attempted to research the challenges accompanied by the introduction of diversity programs

and to recommend solutions of those problems. The findings indicated that resistance both

from majority and minority, lack of commitment from senior management, immaturity of

diversity management application and lack of evaluation of diversity programs as the main

challenges accompanied by managing diversity. In addition, the recommendations were full

participation of all parties in organizations, finding indirect benefits of diversity programs

which may be critical to certain business and seeing diversity program as the advantages

which may benefit organizations in the long term.

Introduction

Diversity management has become one of the primary challenges for HRM as organizations

become diversity worldwide. (Benshchop, 2001: 1166; D'Netto & Sohal, 1999: 530)

According to the U.S. Census Bureau project, 40% of U.S. residents will be members of

racial or ethic minority groups in 2030, while the percentage of minority groups is 28% in

1999. (Dansky et. al., 2003 : 243) Other research which conducted by Opportunity Now

stated that only 20% of U.K. workforce will be white, male, able-bodied and under 45 years

old by the year 2010. (Willmott, 2003: 2) Likewise, with the changes of economic condition,

social and legal environment, diversity also becomes one of critical issues and resources that

are needed to be managed in Australian organizations. (D'Netto & Sohal, 1999: 530; Lewis,

2000: 5; Teicher et al., 2002: 320) A forecast predicted that 20% to 25% of Australian people

will be of Asian origin by the year 2030. (D'Netto & Sohal, 1999:530 sited in Nankervis et

al., 1999) Diversity workforce is generally believed as one of the critical vehicles which

bring corporations competitive advantage. A survey named Impact of Diversity Initiatives on

the Bottom Line in 2001 claimed that 79% of HRM experts at Fortune 1,000 companies in

U.S. believed that diversity improved corporate culture, 77% for employee recruitment and

52% for client relations. (Campbell, 2003: 152) With the confidence of diversity which can

benefit enterprises, a number of companies have engaged in managing diversity in Australia

for many years. At Westpac, for example, a diversity program which focused on the

advancement of female employees had been successfully implemented in 1990s. Other

example was Hewlett-Packard, the company which stated diversity, work/life balance and

development are their pillars of HRM policy. Ford Australia, similarly, used Natural Work

Groups which represented their ethnically-diverse workforce. (Barrile, 2003: 6) However,

two researchers argued that the overall performance of managing diversity is just about

"mediocre" in Australia. (D'Netto & Sohal, 1999: 541; D'Netto & Sohal, 1999: 530 sited in

Dagher et al., 1998) In other words, numerous challenges, difficulties and failures are still

taken place within the diversity programs in Australian organizations currently. This essay

will attempt to research on what kinds of challenges will accompany with the introduction of

a diversity program in organizations and particularly in the context of Australia. Then,

certain solutions will be recommended in order to overcome those challenges which are

justified in this paper.

This essay will highline the challenges which followed by diversity practices in organizations

and the challenges under the Australian context meanwhile. Firstly, in the session of

Concepts of Diversity Management, an integrated explanation of diversity management will

be presented by examining the definitions of diversity and diversity management, followed

by the framework of diversity management. After that, the benefits of introducing diversity

initiative to organizations will be justified by this paper. Secondly, this paper will examine

the social trends which are related to managing diversity in Australia. Finally, the challenges

and recommendations will be presented in the final session.

Definitions of Diversity Management

Diversity management assumes that organization aims for effectiveness, productivity and

competitive advantage through managing diversity. (D'Netto & Sohal, 1999:531) Unlike the

notion of traditional HRM, diversity management acknowledges the differences between

employees rather than seeing people as a generic category (Benshchop, 2001: 1167)

Diversity is a combination of people