Diversity management includes working to eliminate unfair discrimination. To discriminate is to note a difference between things, which in itself isn’t necessarily bad. For example, noticing one employee is more qualified is necessary for making hiring decisions. Usually when we talk about discrimination, though, we mean allowing our behavior to be influenced by stereotypes about groups of people.
Stereotyping is judging someone on the basis of our perception of the group to which that person belongs. Stereotypes can be insidious because they can affect how potential targets of discrimination see themselves.