An attempt is made to assess the effect of human resource diversity in South Africa and provide strategies for managing such diverse institutions. A pilot study using questionnaires was conducted to determine the circumstances surrounding workforce diversity in a number of educational institutions. Thereafter, qualitative interviews provided in-depth perspectives on issues such as individualism vs. collectivism, gender, assumptions, attitudes and affirmative action measures. The data emerging from the investigation provided clear guidelines for handling diversity in institutions and suggest the necessity for creating an understanding and recognition of differences, providing for reward and support and for developing a sound diversity management strategy.