A B S T R A C TDespite increased applications and scholarship, appreciative inquiry remains a research method with little self-reflection or critique to evaluate the process as an action research method. Perhaps counter-intuitively, we propose that critical theory provides one useful lens through which to develop an appreciative evaluation of the process. We begin this article with a brief introduction to appreciative inquiry (Ai) as it is presented in the literature. Calls for evaluation of the process are acknowledged, as are the few evaluations/critiques of Ai we have found in literature. We discuss how critical theory may be applied to an evaluation of appreciative inquiry bridging an apparent paradox between the negativity associated with the former and the positive focus of the latter. An initial application of Critical Appreciative Process (CAP) is described to illustrate how the integrated use of appreciative inquiry and critical theory deepens insight and recognition of the complexity in human endeavours. Action ResearchVolume 4(4): 401-418 Copyright© 2006 SAGE Publications

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Persistent patterns of employment segregation have long been challenged through what is here called “the discourse of equity”. Associated equity legislation and equal employment policies have not succeeded in changing these patterns. “The management of diversity”, a newly‐developing discourse, is claimed by its proponents to encapsulate traditional equity issues in a more managerially compelling format. Additionally, through this new discourse, progressively addresses issues associated with managing diverse people in a global context. Argues that, in the context of globalizing capitalism, a new homogeneity with different patterns of exclusion is being achieved. The pragmatic focus on “the management of diversity” may diffuse the emancipatory imperative implicit in “the discourse of equity”. Urges an examination of the extent to which traditional equity concerns have been co‐opted to divert attention from new forms of systemic employment segregation.

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