This study has a few limitations. First, we focused only on “cultural diversity” as management of cultural diversity requires a unique set of competencies. Our paper does not focus on other aspects of diversity such as age, gender and marital status. Second, our paper focuses on cultural diversity in the Australian workplace. Hence, implementation of the model overseas will have to be done with caution. Third, we did not include ethical issues as we were focusing on managerial competencies in the Australian workplace. Fourth, our paper does not include evaluation of these competencies. Instead, we have four research propositions in our paper. Future research can test these propositions and use the DMCM to evaluate the extent to which managers actually possess the competencies required to manage diversity effectively in the workplace.