Diversity Management Challenges in the 21st Century: Opportunities and Implications for Managers

Abstract

Diversity management has become an increasingly important topic in the 21st century, as organizations are recognizing the benefits of having a diverse workforce. However, managers are also facing significant challenges in managing and valuing diversity, particularly in a globalized and interconnected world. This systematic literature review aims to provide insights into the benefits of diversity management, the role of managers in promoting diversity, and the challenges faced by managers in workforce diversity management. A total of 25 journal articles were analyzed, covering topics such as multicultural task environments, interfunctional coordination, complexity, and discrimination at work. The study finds that the biggest challenges in workforce diversity management are brought about by globalization, outsourcing, and the need to retain diverse and talented human capital in organizations. To address these challenges, managers need to adopt new perspectives and strategies to effectively manage and value diversity in the workplace. The study suggests a framework for creating a diverse workforce that is productive and performance-driven, which has significant implications for organizational policies and practices aimed at recruiting, retaining, and managing employees from diverse backgrounds and identities. Overall, this systematic literature review provides valuable insights into diversity management challenges in the 21st century, and highlights opportunities for managers to create a more inclusive and diverse workplace. The findings contribute to future research directions and underscore the importance of diversity management in organizations today.