• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.1
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• pp.110-124
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• 2011

Even though Korea has long experienced single race/ethnic demographic composition, the recent rapid change of demographic diversity will have powerful impact on the HRM(human resource management) in the future. In this research we find the influence of the diversity friendly HRM to the human resource practices using the data of WPS(Workplace Panel Survey) of Korea Labor Institute. If the training for women is high, the density of the woman increased. The performance pay is introduced, then the density of the disabled person would be increased. The foreign workforce was also increased if the company used more selection methods. But the HRM practices such as talent management, yearly-based compensation systems, and appraisal program which has a tendency to reduce diversity have no significant influence to the financial performance. This findings imply that the management team should introduce the effective HRM systems to manage diverse human resources after considering the organizational culture and business environment. This research intends to find the diversity friendly HRM practices and hope to help the efforts of the management team to find effective management methods.