Yet, there has been no empirically proven association of HRM diversity practices with increases in diversity and improved organizational performance. In the mid 1990s, several scholars commented that diversity research lacked scientific precision, theoretical analysis, historical specificity, empirical grounding, and had been seriously under researched (Nkomo and Cox 1996; Sanchez and Brock 1996; Litvin 1997). Later, Maxwell, Blair and McDougall (2001) highlighted the potential disparity between espoused organizational rhetoric on managing diversity, and the reality of organizational practices in key human resource areas. Most past studies, such as Blum et al. (1994) and Rynes and Rosen (1995), regarded HRM diversity practices only as compliance with AA and EEO and neglected the practices appreciating and making use of diversity. Surprisingly, there is no evidence showing such a situation has changed drastically over the past decade. Researchers have not investigated how diversity has been managed in the HRM area and what HRM approaches are appropriate to manage diversity effectively. We argue that the reason for this absence is actually a lack of effective HR diversity management practices in organizations. In order to provide theoretical support to our argument, we conducted a critical review of the existing literature on diversity management through HRM.