The thesis extends previous research (Pitts, 2009; Nishii and Özbilgin, 2007; Ng and Burke, 2005; Ely and Thomas, 2001; Cox, 1993; Cox and Blake, 1991) on diversity management, and the perception of employees of its effective implementation. It does so firstly by quantitatively and qualitatively analysing the organisational culture of a private institution, and secondly by proposing a model that underlines the relationship between diversity management and employees’ understanding of the organisational culture. The purpose of this research is to investigate the business case for cultural diversity in an organisation in Cyprus. It aims to contextualise issues around diversity within the current peculiar politico-economic environment, and identify the drivers as well as barriers to diversity in the company. The business case has been used to rationalise the introduction of diversity management initiatives (Johns, Green and Powell, 2012); here, the research examines the situation in a specific organisation and attempts to link diversity policies to the perceptions of employees of organisational culture and effective diversity management. The focus for the research was as follows: What does the literature say about the management of cultural diversity? What are the drivers towards the management of cultural diversity in the organisation? What are the barriers and resisting forces to the management of cultural diversity at the organisation? How can cultural diversity be managed at the organisation? More specifically, I focus on the connection between diversity, employees’ perceptions of their organisation, and their sense of organisational culture and leadership. As revealed by the research, the organisation has not established any form of diversity management policy; however, the human resources model toward human commitment that has been developed causes employees to feel that they are treated with respect, are encouraged to freely speak their opinion, and as a result cohesion and morale are enhanced. Though the organisation has established an organisational culture that promotes synergy and collaboration, still the absence of a formal diversity management policy makes the culture vulnerable to misunderstandings and misinterpretations. If  the company goes for the option of not establishing a comprehensive policy of diversity, then it will be incapable of fulfilling core benefits such as creativity, increased morale and better marketing of different obligations to the public, including the protection, restoration and improvement of public health