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The term managing diversity is increasingly being used by Australian managers. It is a process which involves more than compliance with affirmative action legislation. This article identifies the major philosophical principles underpinning diversity management, the major ways in which it differs from affirmative action and the arguments for a diversity management approach. The process of building a culture which explicitly values differences between inidividuals operates at three levels: the strategic level, the managerial level and the operational level. The last section of the article examines some of the techniques which can be used at these three levels to effectively manage diversity. Examples from Australian organisations are used to illustrate these techniques.

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