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The study aimed to increase the understanding of diversity by reviewing different theories related to the topic. The study also gathered to review diversity management practices of different organizations. In order to realize aims, secondary data has been gathered from different sources. The research has presented case studies of HP, Dublin Bus, Avon Corporation, and Gannet News Media. The analysis of different theories and case studies has revealed that the key factors affecting diversity management include the perceptions of employees, management practices, and policies. The effective management of diversity allows organizations to improve the satisfaction of employees. It also allows businesses to solve problems in a creative manner

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