PurposeThis paper aims to examine diversity management (DM) practices in leading private-sector organizations in Iran.Design/methodology/approachThe study draws on in-depth interviews with 23 human resource management (HRM) executives and supervisors in nine private sector companies in Iran, and presents the analysis conducted using MAXQDA software.FindingsThe results categorize DM practices into four subsystems of HRM, i.e. recruitment and selection, training, performance management, and reward management. These practices indicate the inclusion of diversity-sensitive criteria and consideration of equal opportunity in the HRM subsystems.Originality/valueThe findings advance a contextual understanding of DM in a developing country. Considering DM practices in HRM subsystems may provide an effective way to help managers address workforce diversity in organizations.