Over the past three decades the need for private and public organizations to embrace diversity has been echoed. The rationale for this need is that a number of desirable positive outcomes occur when groups or work teams include diverse perspectives and value that diversity. Diversity as a new lexicon in human resource management provides immediate access to a large pool of knowledge, skills, and abilities required in the accomplishment of organizational goals and objectives. The major challenge to employers of labor is managing and valuing diversity by transforming the traditional culture of most organizations into a multicultural culture that nurtures and sustains all employees. The paper explores some of the challenges public managers are encountering in the twenty-first century in the process of managing and valuing diversity. The analysis is divided into four sections. The first section introduces the need for diversity in organizations, the second section examines the underlying theoretical perspective, and the third section provides approaches to managing and valuing diversity. The last section concludes the analysis with speculations on the future of managing and valuing diversity in public organizations.