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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; DNetto & 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. (DNetto & 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. (DNetto & 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
