This literature review is aimed to critically analyze the diversity management at multicultural organizations. Existing theories, studies and research regarding diversity management at workplaces are intended to be explored and their effectiveness evaluated. The implementation of various diversity management practices will be examined with the help of literature to determine; the significance of diversity management at both large and small scale organizations, its benefits, chief factors contributing to diversity management and the issues and challenges pertaining to successful diversity management implementation. A part of the review will be focused on how diversity management can be successfully implemented. Finally, a conclusion will be drawn from the literature review highlighting the key elements assessed and learned. In today’s dynamic, overly complex and ever changing societal structure, diversity has hit almost every small and large organization around the world. Constantly shrinking societies post-colonialism and the modernity being infused in such organizations have added to the complexity of how these diverse populations at workplace can be managed effectively. How diversity is perceived by various researchers differ to some extent. This difference is explained by their narrow and broad scope of diversity. To some, diversity deals with issues including but not limited to classism, racism and sexism (Cross, Katz, Miller, and Seashore, 1994) while for others it concerns more broader meanings like understanding, acknowledging and valuing age, gender, ethnicity, race and spiritual differences among people (Esty, Katharine, Richard G., Marcie S. (1995) and Black (2001). From an organization’s perspective, some authors have put it simply as recruitment, retaining and establishing suitable workplace relationships of people belonging from different backgrounds whilst putting all possible efforts in admonishing any anti-social behaviour at workplace (Thomas, 1991). Kelly and Dobbin (1998) as noted by Tatli (2011) were amongst the very first scholars to explain this long existing crucial discourse of diversity subsisting in different capacities. The study along with its assumptions according to modern society were based on the Litvin’s (1997) concerns over the aforementioned complexity of workplaces and how managers can effectively deal with them by adopting different approaches. Conventional study of managing diversity would be one approach to understand the complexity of different practices in existence (Lash, 1999) but there are limitations to what and how much theory and literature can be practically useful to manage this ever changing architecture of diversity. Bauman (2001) opposes Lash’s (1999) idea by bringing forth his findings on the uncertain and unpredictable nature of human and their actions under different capacities. According to Bauman (2001) conventional modes of studying human interaction would just not suffice. The rapidly changing demographics have been put forward by some authors as the primary reason for diversity related concerns and its management awareness in general including Foster and Harris (2005). On the other hand, the perception of diversity management and how much importance it is given can be country specific. This phenomenon can be proved by Miller and Rowney’s (1999) study on diversity initiatives in multicultural organizations in Canada where it was suggested that almost 50 percent of the organizations there do not even consider diversity management to be an issue.
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