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International Journal of Manpower 20,8 530

Human resource practices and workforce diversity: an empirical assessment

Brian D'Netto and Amrik S. Sohal
Monash University, Victoria, Australia
Keywords Equal opportunities, Multicultural society, Human resource management, Australia Abstract Workforce diversity has become an important issue in Australia. This study examined the extent to which human resource management practices were being used by organisations in Australia to manage workforce diversity. The study also assessed the perceived challenges and benefits of diversity in the workforce. The findings of this study indicated that overall, management of workforce diversity is only ``mediocre''. In particular, inadequate diversity management practices were found in the areas of recruitment and selection and training and development. As migrant employees do not create any problems and are very compliant, the challenges that workforce diversity presents does not receive adequate attention by organisations in Australia. However, these organisations seek several benefits from their multicultural workforce. The implications of these findings are discussed.

International Journal of Manpower, Vol. 20 No. 8, 1999, pp. 530-547. # MCB University Press, 0143-7720

Introduction Diversity may be defined as the presence of differences among members of a social unit (Jackson et al., 1995). Diversity is an increasingly important factor in organisational life as organisations worldwide become more diverse in terms of the gender, race, ethnicity, age, national origin and other personal characteristics of their members (Shaw and Barrett-Power, 1998). Today, the workforce comprises people who are different and share different attitudes, needs, desires, values and work behaviours (Deluca and McDowell, 1992; Morrison, 1992; Rosen and Lovelace, 1991). In Australia, current demographic trends indicate that the composition of the workforce is changing. Australians now comprise people from more than 130 different language backgrounds. More than 220 nationalities are represented in the population. Over 42 per cent of Australia's population were either born overseas or have at least one parent who was born overseas. About 17 per cent of the population in Australia speak a language other than English at home. About 21 per cent of Australia's small businesses are operated by people of non-English speaking background. In addition, it is expected that 20 per cent to 25 per cent of the Australian population will be of Asian origin by the year 2030 (Nankervis et al., 1999). In spite of the growing importance of workforce diversity, very little empirical research has been done to assess management of diversity in Australia. The need for better management and utilisation of diversity in the Australian workforce has been identified by the Industry Task Force on leadership and management skills as one of the challenges facing organisations in Australia and affecting their performance, development and effectiveness

(Industry Task Force, 1995). However, recent research into diversity Human resource management practices in the Australian manufacturing industry indicated that practices the performance of these manufacturing organisations was only mediocre (Dagher et al., 1998). The denial of people management problems creates an atmosphere that leads to inefficient utilisation of large numbers of employees, especially those who are different in terms of race, gender, age, religion, 531 lifestyle and appearance and leads to the inefficient functioning of the corporation with a resulting negative impact on the corporate bottom line (Fernandez, 1991). This paper focuses on ``multiculturalism'', one of the most important aspects of workforce diversity in the Australian workplace. This study sought to assess whether organisations in Australia are using effective human resource practices to manage workforce diversity. The results of this research will provide significant contribution to the effective management of workforce diversity in Australia. Human resource management practices and workforce diversity Managing diversity means establishing a heterogeneous workforce to perform to its potential in an equitable work environment where no member or group of members has an advantage or a disadvantage (Torres and Bruxelles, 1992). Managing diversity includes a process of creating and maintaining an environment that naturally allows all individuals to reach their full potential in pursuit of organisational objectives (Jenner, 1994; Thomas, 1994). Diversity management emphasises building specific skills, creating policies and drafting practices that get the best from every employee. It assumes a coherent environment in organisations and aims for effectiveness, productivity and ultimately competitive advantage. Through effective integration of diversity management principles in the key human resource functions of recruitment and selection, training and development, performance appraisal and remuneration, an organisation can effectively manage workforce diversity. Diversity practices in recruitment Successful organisations can benefit from workforce diversity by creating an organisational environment which attracts people from diverse labour markets. Managing diversity promotes competitive edge by recruiting the best people for the job, regardless of ethnicity, age, gender or other individual characteristics (Cornelius, 1999). Since organisations often resort to internal promotions to fill vacancies, recruiting a diverse workforce at critical entry points to the organisation also ensures that a diverse pool of talent is available for promotion. To achieve these objectives, recruitment and selection processes must be based on organisational and job-relevant criteria and managers who run these processes should be skilled in assessing the criteria (Kandola and Fullerton, 1994). Unfortunately, most of the research has indicated that steps and criteria followed by organisations to select and test candidates are inadequate or

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inappropriate for a number of applicants including minorities (Loveman and Gabarro, 1991; Morrison, 1992; Rosen and Lovelace, 1991; Schreiber et al., 1993). Many organisations in Australia conduct blanket literacy and language testing in recruitment. These tests bear no relationship to the specific job requirements. In addition, interviewers have little or no understanding of techniques suitable for interviewing applicants from different ethnic backgrounds (Caudron, 1990; Morrison, 1992). Effective management of diversity recognises that people from different backgrounds, cultures and experiences can bring new ideas to the workplace. Several ``best practices'' have been recommended to improve management of workforce diversity in the area of recruitment and selection. These include the development of a job description and selection process that cover job relevant duties, qualifications, and experience and complies with anti-discrimination legislation. Other practices include attracting applicants by including advertisements in ethnic language press in addition to daily newspapers, presence of diverse managers on selection committees and implementing techniques that allow diverse people to answer questions to the best of their ability and potential (Morrison, 1992; Schreiber et al., 1993). Interviews constitute an important part of the selection process. However, researchers have found that interviewers have little or no understanding of special interviewing techniques that can be used when dealing with applicants from different ethnic backgrounds (Caudron, 1990; Morrison, 1992). Diversity practices in training and development The goal of training and development programs of all organisations should be to maintain or improve the performance of individuals and, in so doing, that of the organisation (Anthony et al., 1999). Effective management of workforce diversity involves not just recruiting diverse employees but also retaining them. One way of increasing retention rates is by providing adequate training and development opportunities to employees. In the case of multicultural employees, training may also assist in understanding special rules and regulations that apply to the Australian workplace. Diverse employees often feel neglected and do not perceive any career paths. Employee development programs can address this problem, by preparing employees for future promotions. Best practices recommended in the area of training include: identifying specific training needs which are linked to the organisation's goals and objectives; assessing individual worker's training needs (both traditional and non traditional) to enable participation within a training program; developing individual annual training plans which cover knowledge, operational and interpersonal skills, facilitating individuals' entry into job/technical skills training; evaluating literacy, language and numeracy to assess ability to undertake job/technical training; linking training to award restructuring, enterprise agreements, process improvement and pay scales; and identifying present skills of staff through an audit process which assesses language,

literacy, numeracy and skill competency levels (Adler, 1986; Grace, 1994; Human resource Morrison, 1992; Schreiber et al., 1993). In Australia, where 23 per cent of the practices population are from non-English speaking backgrounds, literacy training assumes significant importance. Training programs for diverse employees can help to eliminate group differences in career outcomes and generate respect for individual differences in attitudes, values and behaviour. Diversity practices in performance appraisal Effective performance management can make a major contribution towards the achievement of business objectives while maximizing the contribution of employees (Cornelius, 1999). A good performance appraisal system can help to enhance employee performance by evaluating how employees are doing on the job and giving them the chance to correct their mistakes and acquire new skills (Stewart, 1986). A performance appraisal system should be objective not subjective, relevant to the job and the company, and fair to all employees and offer no special treatment (Schuler et al., 1992). However, workplace diversity scholars point to the glass ceiling that is a barrier to promotion into management (Powell and Butterfield, 1994). Multicultural employees are often perceived as not having the ``right skills'' to move into management positions. Thus, the glass ceiling creates artificial barriers based on attitudinal or organisational bias that prevent qualified individuals from advancing upward in their organisation (US Department of Labour, 1991). Several steps can be taken to improve the effectiveness of performance appraisal practices in the area of diversity. Minorities can be regularly included on panels that evaluate, select, and promote managers. The problem of assessing candidates who are ``different'' can be reduced, if some of the decision makers are non-traditional managers. Migrant representation on such panels can help to create objective criteria and fair performance appraisal practices. Multicultural employees must have equal opportunities and adequate preparation to take on demanding assignments in the future (Loden and Rosener, 1991; Morrison, 1992; Schreiber et al., 1993). Performance appraisal techniques should focus on appraising the individual's performance, not personality. Fulkerson and Schuler (1992) argue that the appraisal process should be as culturally neutral as possible. Organisations can include effective management of workforce diversity as one of the criteria on which all managers will be assessed. For example, actions taken by the manager to hire and promote minorities and women can be used as performance criteria (Morrison, 1992; Sessa, 1992). Performance appraisal systems will improve employee performance only when these systems are seen as fair and unbiased. Diversity and remuneration Remuneration systems seek to improve employee performance by rewarding those who have made a contribution to the organisation's performance. Good remuneration systems ensure that there is a direct relationship between effort and reward. Thus, a performance-based pay system is viewed as being

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effective when the process of providing measurable rewards is appropriately linked to the individual or group performance. This is achieved within an agreed framework of planned goals, objectives and standards (Armstrong and Murlis, 1994). An effective pay system is the backbone of all policies concerning the acquisition and utilisation of human resources. The key outcome of an effective performance-based pay system is to improve an organisation's overall performance. According to Lowery et al. (1996), the other key aim of a pay system is to retain the most valuable employees by distributing the rewards in such a way that these employees are left with a feeling of satisfaction. An effective performance-based pay system should sustain high levels of performance from the organisation's human resources, lead to employee satisfaction and increase organisational commitment. Thus, performance-based pay systems can help to reduce wage disparities for migrant employees, since there is a direct relationship between pay and performance. Another method of reducing inequalities in income for multicultural employees is by giving good performers challenging assignments (Rosen and Lovelace, 1991; Schreiber et al., 1993). Such assignments prepare these employees for promotion to more senior positions in the organisation (Loveman and Gerber, 1991; Schreiber et al., 1993; Kogod, 1992). Unfortunately, research indicates that the main problems that affect culturally diverse employees are inequality in income and bonuses, job recognition, promotions and assignment of responsibilities (Jackson et al., 1992; Grace, 1994). In addition, many traditional managers still prefer to give non-traditional employees responsibilities on a ``trial'' period before they become permanent (Morrison, 1992). This creates mistrust, lowers morale, and demotivates the non-traditional workforce. Cabezas and Kawaguchi (1988) found that an income gap exists between white managers and minority groups for the same amount of work and qualifications. This gap was attributed to barriers which created some discrepancies in recognition. Prejudice, for instance, contributes to an unwillingness to pay higher salaries, grant benefits, or give minorities freedom to do their jobs without constant monitoring. Studies by Goldin (1990) and Gerhart and Rynes (1991) revealed that there is still reluctance to give non-traditional managers the same authority and rewards that go to their white male counterparts. Differences in rewards for similar performance result in loss of motivation and lower job satisfaction. Challenges and benefits of workforce diversity Australian organisations face many challenges from workforce diversity. Meeting diversity challenges requires a strategic human resource plan that includes a number of different strategies to enhance diversity and promote the productivity and effectiveness of the twenty-first century workforce (Elmuti, 1993). Human resource managers must solicit a trainable population, check required skills and competencies against the job, market jobs sufficiently ahead

of needs, and extend the workforce boundaries to include the nationals of other Human resource countries. Organisations which plan for the anticipated workforce and accept practices cultural diversity management as a progressive technique will benefit from better employee retention, increased productivity, less absenteeism, better morale, an expanded marketplace and improved customer service (Manning et al., 1996). 535 Human resource practices from top to bottom need to be re-examined to cope with the new strengths and challenges of diversity, so better approaches can be created by management to recruit new talent, retain them, and manage them more effectively (Denton, 1992; Rosen and Lovelace, 1991). Human resource managers are faced with the challenge of convincing their senior management that diversity programs are beneficial to the organisation. Some organisational leaders are concerned that implementing diversity initiatives is too expensive, upsets productivity and causes disruption in the workplace. Prejudice and hostile work environments also pose internal stumbling blocks to managing workforce diversity effectively (Robinson et al., 1994). An important barrier that affects full integration of ethnic employees in the Australian workforce is the issue of communication, mainly English literacy (Adler, 1986; Loden and Rosener, 1991). A number of steps might be taken by management to ensure effectiveness in communication. For example, translating summaries of the documents into the main workplace languages, providing English language and literacy training for migrants, training migrant staff on workplace cultural issues, and training all staff in crosscultural communication are examples of such activities (Adler, 1986; Morrison, 1992). Good workforce diversity practices in the area of human resources, are believed to enhance employee and organisational performance (Adler, 1986; Deluca and McDowell, 1992; Fernandez, 1993; Grace, 1994; Hall and Parker, 1993; Morrison, 1992; Schreiber et al., 1993). Managing diversity involves leveraging and using the cultural differences in people's skills, ideas and creativity to contribute to a common goal, and doing it in a way that gives the organisation a competitive edge (Deresky, 1994; Fernandez, 1993; Morrison, 1992). Recent studies have shown a strong correlation between good diversity practices and profits (Hayles and Mendez, 1997). Diversity allows increased creativity, a wider range of perspectives, better problem definition, more alternatives and better solutions (Adler, 1986 ). To reap these benefits, diversity must be managed effectively. Research questions While the literature reviewed has identified several effective diversity practices, there is little evidence that such practices are being adopted in Australia. Hence, this study seeks to assess the adequacy of the practices used by organisations in Australia to manage workforce diversity. Specifically, the following research questions were investigated in this study.

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Main research question Do organisations in Australia adequately use effective practices for managing workforce diversity? Related research questions
.

Do organisations in Australia adequately use effective recruitment practices for managing workforce diversity? Do organisations in Australia adequately use effective training and development practices for managing workforce diversity? Do organisations in Australia adequately use effective performance appraisal practices for managing workforce diversity? Do multicultural employees perceive a difference in the remuneration and rewards they receive compared to other employees in the organisation? To what extent is workforce diversity considered a problem/challenge by organisations in Australia? To what extent is workforce diversity considered to be beneficial to organisations in Australia?

Methodology Data collection The study included 500 large organisations in Australia. The sample was selected at random from the Australia On Disc database. Data were collected using a structured questionnaire. The total length of the questionnaire was four pages and took about 15 minutes to complete. The questionnaire used in this study consisted of three major sections: biographical data, challenges and benefits, and diversity management practices in the four human resources areas under study. The second and third sections of the questionnaire used seven-point Likert scales (1 = strongly disagree to 7 = strongly agree). Remuneration practices were measured using a 12-item scale (D'Netto, 1994; Newman and Krzystofiak, 1990). Cronbach's (1951) alpha coefficient was computed to test the internal consistency of the scales. The results were as follows: (challenges: eight-item scale a = 0.87, benefits of diversity: 11-item scale a = 0.93, recruitment: eight-item scale a = 0.77, training and development: 10-item scale a = 0.84, performance appraisal: eight-item scale a = 0.70, remuneration: 12-item scale a = 0.97). Nunnally (1978) has stated that a reliability of 0.70 or higher is acceptable. In the present study, reliability coefficients range from 0.70 to 0.97. The questionnaires were mailed to ``The Human Resource Managers'' of the companies included in the sample. Each questionnaire was accompanied by a covering letter which briefly explained the purpose of the study. A self-addressed prepaid envelope accompanied the

questionnaire. Respondents were asked to complete the questionnaire and mail Human resource it directly to the researchers. A reminder letter was sent to all respondents three practices weeks after the original mail out. Results A total of 105 completed and usable questionnaires were received, yielding an overall response rate of 21 per cent. The age group of the respondents ranged from 25 to 65 years. Of the respondents, 58 per cent were male and 42 per cent were female. Of the respondents, 37.4 per cent were below the age of 35 years, 46.5 per cent were between 36 and 50 years old and 16.1 per cent were above 50 years old. Of the organizations, 84 per cent were Australian owned and 88.4 per cent were public companies. Of the companies, 52.7 per cent had overseas operations. Of the respondent organisations, 32.1 per cent had less than 100 employees, 29.5 per cent had between 100 to 499 employees and 38.4 per cent had 500 or more employees. Thus, the sample included small, medium and large organisations; of the organisations, 35.7 per cent had less than 10 per cent migrant employees, 23.3 per cent had 10-20 per cent migrant employees and 41 per cent had more than 20 per cent migrant employees. Main research question The results of the study indicated that diversity management practices in Australian organisation is ``mediocre''. The overall variable (all HR diversity practices) had a mean of 3.83[1] (see Table I). The overall performance of organisations in each of the four human resources areas is also indicated in Table I. Related research questions Research question No. 1 In order to assess whether organisations in Australia have effective diversity practices in the area of recruitment, the mean score for the combined recruitment variable was calculated (see Table I). The mean scores for the individual diversity practices in recruitment were also calculated. The results are presented in Table II. The results of the mean scores in Table I for the overall recruitment function and in Table II for the individual diversity practices in recruitment revealed
Variable All HR diversity practices Recruitment Training and development Performance appraisal Remuneration Note: 1 = strongly disagree through 7 = strongly agree Mean 3.83 3.03 3.20 4.57 4.53

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Table I. Mean scores of the human resources combined variables

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that the overall use of diversity practices for the recruitment function in organisations is slightly below average. The mean score for the overall recruitment variable was 3.03. This indicates that the current recruitment practices do not adequately meet the needs of a more diverse population. In addition, the results in Table II indicate that organisations in Australia do not adequately advertise in ethnic newspapers, nor do they have adequate programs and policies for attracting migrant employees. Research question No. 2 The mean score in Table I for the overall training and development function was 3.20, indicating that the overall response is once again below the mid-point of the scale. Organizations in Australia do not appear to have adequate diversity policies and programs in the area of training and development. The results in Table III indicate that migrant career management programs, cultural sensitivity courses and education programs to reduce stereotyping are inadequate. However, assessment and analysis of training needs appears to be adequate.
Item Top management supports migrant recruitment Current job descriptions and selection processes reflect migrants' needs Migrant employees are present on selection committees The company has policies aimed at attracting migrant employees to deal with migrant customers Presence of migrant employees in HRM department Special programs that aim to recruit migrants each year Job advertisements appear in ethnic newspapers Note: 1 = strongly disagree through 7 = strongly agree Mean 4.77 3.71 3.05 2.91 2.86 2.01 1.88

Table II. Diversity practices used by organisations in the recruitment function

Item Employees' needs are assessed irrespective of their origin, to enable full participation Individual training plans are developed Present skills of staff are identified through an audit process Literacy, numeracy and language skills are evaluated Developing managerial skills for working in a multicultural environment Education programs to reduce stereotyping English courses for migrant employees Cultural sensitivity courses Managers having the title of diversity managers Migrant career management programs Note: 1 = strongly disagree through 7 = strongly agree

Mean 5.05 4.68 4.03 3.64 2.95 2.73 2.58 2.23 2.09 2.06

Table III. Diversity practices used by organisations in the training and development function

Research question No. 3 Human resource In the area of performance appraisal, organisations appear to have good practices diversity management practices. The overall mean score for performance appraisal was 4.57. Respondents stated that appraisal ratings were focused on the individual's performance and that objective criteria and fair practices were used for everyone. Yet, the same respondents stated that there was inadequate 539 inclusion of culturally diverse employees on appraisal panels and that more consideration for migrants needed to be introduced (Tables IV and V). Research question No. 4 The mean score in Table I for the overall remuneration function was 4.53, indicating that the use of diversity practices in this function is good. Respondent organisations were satisfied that the salary and benefits of multicultural employees was quite good, when compared to other employees in the organization.
Item Appraisal ratings are focused on the individual's performance, not personality Migrants do not have to be higher performers that Australians to get promoted Objective criteria and fair practices for everyone The cultural background of the appraiser does not influence the performance ratings of the appraisee Several multicultural employees are at the top of the organisation Culturally diverse employees are included on appraisal panels More consideration for migrants has been introduced Top management directly intervenes to ensure cultural diversity goals are met Note: 1 = strongly disagree through 7 = strongly agree Item Compensation Working conditions Work load Work importance Status/recognition Job security Advancement opportunity Feedback Social interaction Benefits Work variety Authority/control/autonomy Note: 1 = well below average through 7 = well above average Mean 4.79 4.65 4.58 4.56 4.56 4.55 4.49 4.49 4.44 4.43 4.41 4.41 Mean 6.19 5.91 5.86 5.71 3.56 3.31 3.29 2.73

Table IV. Diversity practices used by organisations in the performance appraisal function

Table V. Comparison of the remuneration of multicultural employees with other employees

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Research question No. 5 The results shown in Tables VI and VII revealed that the mean score for the combined problems/challenges variable was 5.11 (see Table VI). The mean scores in Table VII indicate that workforce diversity is not seen as posing major problems/challenges to organisations. In fact, migrant employees do not have higher absenteeism rates and appear to work well within the organisation. Research question No. 6 The mean score for the benefits combined variable was 4.46. The results in Table VI and Table VIII indicate that organisations in Australia seek several

Table VI. Mean scores of the problems/challenges and benefits of workforce diversity (combined variables)

Variable Challenges Benefits Note: 1 = well below average through 7 = well above average

Mean 5.11 4.46

Item No increased absenteeism or higher turnover Migrant employees are given opportunities to improve technical and managerial skills Migrant employees adapt well to the organisation's culture No significant increase in conflicts No significant communication problems No significant cross-cultural problems Complying with equal opportunity legislation No significant increase in training costs Note: 1 = well below average through 7 = well above average

Mean 5.65 5.34 5.20 5.10 5.08 5.04 4.82 4.68

Table VII. Challenges facing organisations from workforce diversity

Item Managing cultural diversity can create competitive advantage Full participation of all individuals More innovative solutions Better customer service Highly motivated employees Higher productivity More diverse opinions in decision making Higher morale More satisfied employees Less internal conflict Lower turnover Note: 1 = well below average through 7 = well above average

Mean 4.85 4.72 4.62 4.56 4.54 4.46 4.40 4.35 4.33 4.17 4.03

Table VIII. Benefits sought by organisations from workforce diversity

benefits from a multicultural workforce. In particular, organisations believe Human resource that managing diversity can create competitive advantage and provide better practices customer service. They also believe that good management of diversity would result in highly motivated employees and increased productivity. Discussion Research on management of workforce diversity in Australia has been sparse and has not adequately assessed the extent to which diversity practices identified in the literature are being used by organisations in Australia. Hence this study sought to examine how effectively corporate Australia was using good human resource management practices to manage workforce diversity. The study also investigated the challenges and benefits of workforce diversity. The main research question sought to assess the use of diversity practices at the overall level by combining the four human resources functional areas together. The results revealed that, overall, the use of diversity practices in Australian organisations is ``mediocre''. This was indicated by the fact that the human resources combined variable had scored a mean of 3.83, slightly better than the mid-point of the scale. Several researchers have argued that such inadequate management of workforce diversity is not beneficial to the organisation. Employees are not able to reach their full potential and organisational performance is not enhanced (Jenner, 1994; Thomas and Gregory, 1994). There are a number of explanations for the absence of good diversity management practices in Australia. Firstly, workforce diversity has assumed the status of a key success factor in business and society only since the mid1980s. This concept is still new to many organisations in Australia. Thus, acceptance and integration of workforce diversity practices will take a considerable amount of time (Council for EEO, 1990; Industry Task Force, 1995). Secondly, it appears that Australian managers do not pay attention to workforce diversity because migrant employees do not create many problems and appear to comply willingly with organisational rules and regulations. Thirdly, for several decades Australia was sheltered from the world market. Hence, organisations did not really consider using their multicultural employees as a source of competitive advantage in global markets. Research question 1 examined the adequate use of effective recruitment practices for managing workforce diversity. The analysis of data revealed that diversity practices in recruitment had a mean of 3.03, indicating that diversity practices in this function were less likely to be applied by organisations. A number of researchers have indicated that Australian employers will be facing a shortage of skilled labour in the near future, while the number of migrants in the workforce will increase (Australian Bureau of Statistics, 1993; Castles and Miller, 1993; Council for EEO, 1990). Recruitment provides the entry point for this diverse pool of talent. The absence of good diversity practices in the recruitment process will result in the failure to benefit from a multicultural workforce in the future. The results of this study indicate that while there is

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strong top management support for recruitment (mean = 4.77), this support does not translate into effective policies and practices at lower levels. There is inadequate inclusion of migrants on selection panels and in human resource departments. Ethnic newspapers, an important source of recruitment of migrant employees, appear to be neglected. In addition, there are inadequate policies and programs for the recruitment of migrant employees. Corporate Australia appears to be failing to capitalise on the abundance of skills that exist in the migrant community. Anecdotal evidence and informal discussion with a number of migrant applicants indicates that insistence on ``Australian work experience'' by a large number of organisations presents an insurmountable hurdle for new migrants, especially when this requirement is often irrelevant to actual job performance. The results of this study are in concurrence with past research dealing with the inappropriateness of recruitment and selection tests and procedures (Coudron, 1990; Loveman and Gabarro, 1991; Morrison, 1992). The findings of this study indicate that urgent attention should be paid to development and use of proactive recruitment policies and practices to manage workforce diversity effectively. It is difficult to understand how organisations in Australia can be committed to enhancing organisational productivity while continuing to adopt recruitment policies and procedures which actually block the entry of non-traditional employees into the organisation. Research question 2 dealt with the adequacy of diversity practices in the training and development function. Past research has indicated that the increase in the shortage of skilled labour, the increasing number of migrant employees, the increasing competitive environment and the rapid rate of change puts an organisation under pressure to adapt to these changes, through effective training programs and courses to empower its diverse workforce (Jackson et al., 1992; Loveman and Gabarro, 1991). Thus, it is surprising to find that in spite of the growing need for training and development, the findings of this study indicated ``below average'' performance by organisations in training and development for diverse employees (mean = 3.20). Organisations seem to be unwilling to adopt appropriate diversity practices to manage their training and development function more effectively. While training and development improves an employee's knowledge and skills, it also serves to reduce turnover. Programs for training and developing migrant employees can help to reduce the feeling of alienation and provide career paths for these employees. The results indicated that while identification and assessment of training needs is good, relevant training programs to deal with diversity are inadequate. For example, there are inadequate programs to deal with issues such as cultural sensitivity, stereotyping and managerial skills for working in a multicultural environment. In addition, organisations do not appear to be paying enough attention to developing the English language skills of multicultural employees. This may be because they do not see communication as a problem. However, unless migrant employees possess a good understanding of English, they will not be able participate effectively in group/team discussions. Such failure to

participate often results in migrant employees being perceived as being ``too Human resource quiet'' or not smart enough. Such inaccurate perceptions have a negative practices impact on the promotion prospects of migrant employees. Research question 3 addressed the issue of diversity practices in relation to performance appraisal. Good diversity practices in the area performance appraisal are essential to reduce discrimination in recognition of merit and 543 break the glass ceiling (Powell and Butterfield, 1994). The findings indicated that organisations in Australia had relatively good diversity management practices in the area of performance appraisal (mean = 4.57). Respondent organisations were emphatic that appraisal ratings focused on the individual's performance and not personality (mean = 6.19). In addition, respondents stated that objective criteria were used and that migrant employees did not have to be higher performers than others to get promoted. These findings are encouraging and indicate that managers do not discriminate against multicultural employees when assessing employee performance. However, there is no direct intervention by top management to ensure that diversity goals are met (mean = 2.73). In addition, the practice of including migrant employees on promotion panels is relatively uncommon. Migrant representation on promotion panels can help to reduce notions of discrimination. Research question 4 sought to compare the remuneration of multicultural employees with Australian employees. Past research has indicated that a lack of career planning and organisational discrimination in promotional opportunities against diverse employees creates mistrust, deteriorates morale and results in wage disparities (Loveman and Gabarro, 1991; Morrison, 1992; Schreiber et al., 1993). Contrary to the fears of the researchers, the results of this study indicated that organisations do not discriminate against diverse employees in the area of remuneration (mean = 4.53). Overall, diversity practices in the area of remuneration and benefits, appear to be adequate. The presence of strong trade unions and centralised wage fixing in Australia for several decades may have contributed to this absence of discrimination in remuneration. In all 12 areas of remuneration, respondent organisations indicated that there was no significant difference between multicultural employees and others. Research question 5 aimed to assess the extent to which workforce diversity was considered a problem/challenge by organisations in Australia. Researchers consider workforce diversity as an enormous challenge which requires crosscultural understanding in a constructive and creative manner, through establishing a cooperative, harmonious and productive working environment (Council for EEO, 1990; Office of Multicultural Affairs, 1989; Industry Task Force, 1995). However, the results of this study appear to indicate that organisations in Australia do not see workforce diversity as presenting major problems/challenges to their organisation (mean = 5.11). While this is indeed positive, managers appear to ignore the issue of workforce diversity and the challenges it presents, just because there are no ``problems''. Migrant employees do not have higher absenteeism or turnover rates than others. Organisations did not experience any cross-cultural problems, communication problems or

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increase in training costs. In fact, migrant employees appear to be adapting well into the organisation culture. These positive perceptions about migrant employees are good. However, because migrant employees do not create problems, the specific needs of this group are of ignored. Organisations often tend to be reactive and pay attention only to issues which they see as problematic. However, by not acknowledging cross-cultural differences and specific training needs, organisations run the risk of failing to realise the true potential of migrant employees (Fernandez, 1991). Research question 6 sought to assess the extent to which organisations in Australia seek to benefit from workforce diversity. Past research has indicated that workforce diversity can create opportunities not achievable in the traditional workforce (Cox and Blake, 1991; Hall and Parker, 1993). The findings of this study indicated that organisations strongly believe that workforce diversity can provide substantial benefits (mean=4.46). Respondent organisations sought benefits such as improved competitive advantage, higher productivity, greater participation and increased motivation from migrant employees. The sad irony is that while organisations seek several benefits, they do not appear to have good diversity practices to attract and retain these diverse employees. In summary, the findings indicate that organisations believe they can increase productivity considerably through effective management of diversity in the workforce. However, the overall performance in management of workforce diversity is average. Considerable positive changes need to be made in the areas of recruitment and selection and training and development. While organisations seek several benefits from their multicultural workforce, they do not appear to give adequate attention to the issue of diversity as migrant employees are very compliant. However, proactive diversity management practices are essential to realise the true benefits of a multicultural workforce. Limitations of the study This study has some limitations. First, this study focussed only on multiculturalism. Other dimensions of diversity, such as age and gender, were not included in this study. Second, the research design combined migrants from English and non-English speaking backgrounds. The aim was to assess the general use of diversity practices within organisations irrespective of employees' country of origin. Migrants from Anglo-Saxon backgrounds are quite different when compared to migrants from Asian backgrounds. This study does not test these group differences. Third, the respondents in this study were all part of the ``management'' team. Hence, it is likely that their responses to the adoption and efficacy of diversity management practices have a positive bias. This study did not include ``employee'' responses. Implications for future research The findings of this study have several implications for future research. First, this study focussed only on four human resources areas. Future research can

assess the use of diversity management practices in other areas such as Human resource leadership, teamwork, decision making, etc. Second, the respondents of this practices study were human resources managers in 500 different organisations across Australia. This study can be replicated using ``employees'' as a sample. This will facilitate a comparison of ``employer'' and ``employee'' perceptions of the extent of diversity management practices in Australia. Third, this study used a 545 questionnaire for collection of data. Researchers can adopt ``triangulation'' (collecting data using three different methods), so as to enhance the reliability of the results of the study. For example, focus groups and interviews may actually capture other diversity issues. Fourth, this study can be replicated in other countries to assess Australia's diversity management performance in the in global market. Finally, the recent introduction of enterprise bargaining and the decentralisation of the wage system, may have a significant effect in the area of remuneration. Strong union influence in the workplace in the past appears to have resulted in the absence of wage discrimination. As union influence continues to decline, future research will need to assess the effect of this decline on migrant wages.
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