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             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.


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