History and Development of DM studies
2
T hus,
diversity management
means managing diversity contained in the work force.
Diversity management practices for examples: to promote justice perceptions of organization and
inclusion, reject discrimination Kosseck Pitchler, 2006, to appreciate the uniqueness and
diversity of each employee
Lumadi, 2008 .
Diversity Management supports the concept of EEO Equal Employment Opportunity which
refers to efforts to ensure that all individuals have an equal opportunity of employment, regardless of
race, color, religion, sex, age, disability, or national origin. Therefore, it can create a fair and inclusive
workplace for the members of an organization.
Results of previous studies such as described in Jabbour et al, 2011 showed that the diversity
management in organization can have an impact on: 1 increased productivity since the minority
can appreciate the opportunity to work employment and they work with high motivation, 2 increased
creativity and innovation of the organization; 3 the creation of client loyalty 4 improving positive
image of the company; and 5 improving the organizational climate by making it more inclusive
to the differences and innovative.
A number of other studies found the impact of DM on the organization, such as improving
organizational performance Dwyer, Richard
Chadwick, 2003 ; Barnett, Dwyer, and Chadwick,
2004; Robertson, 2007; Winston, 2010, increasing the companys reputation Ollapally Bhatnagar,
Chadwick, 2003; Frink et. al., 2003, Richard et. al., 2004; Robertson, 2007; Winston,
2007, 2010,
increasing innovation and creativity Jackson, Joshi, Erhardt, 2003, enhancing the image and
services of the company, Ely Thomas, 2001 and improve the quality of work Pitts, 2009.
Managing diversity in the workplace should be a concern of every organization. However, not
all organizations realize the power and benefits of having employees with varied background and
characteristics even more many organizations tend to overlook the power and advantages of diversity
Thomas, 2012. In fact, if the diversity is not managed properly, it can lead to conflict and
divisions within the organization Adler, 2003;
Williams OReilly, 1998 .
Concern to the diversity management issue is presumably relatively low for its application to
the companies in Asia. This was confirmed by Budhwar and Debrah 2009, in their article
entitled: Future research on the Human Resource Management Systems in Asia, which encouraged
for more research on the DM dynamics in Asian context,
particularly explore
the different
mechanisms adopted by company to manage diversity and to demonstrate the challenges and
obstacles faced by companies and decision makers. It is more important for the organizations in
Southeast Asia region in order to meet the implementation
of the
ASEAN Economic
Community that is imposed no later than 2015 to be more critical to look at the issue of diversity
within the organization. It is associated with the emergence of diverse workers in a variety of
organizations in the ASEAN region, including Indonesia in connection with MEA above.
The Indonesian archipelago has a population of 251 857 940 inhabitants, 1,128 ethnic groups
JPNN, 2010 and 546 languages, and this data will probably continue to grow because the research has
not been done Kompas.com, Sept. 1, 2012. These data illustrate the extent of diversity in Indonesia,
and of course it will be reflected in companies operating in Indonesia. In order to manage
diversity effectively, an organization must embrace diversity, diverse, and has to change the
organization to accommodate the diversity and make it an integral part of the organization
Gilbert, Stead, and Ivancevich, 1999.