Workforce diversity is gaining prominence worldwide. This thesis argues that workplacerndiversity, when managed properly, significantly determines the level of staff performance; hencerninvaluably contributes to the success of an organization. Cognizant of this and appreciating thernknowledge gaps in the area, the study aimed to examine the effects of diversity factors like gender, age,rneducation, and nationality of employees on their performances while assessing the diversityrnmanagement situation at the Ethiopian Airlines (EAL).rnThe study relied on the collection and analysis of both quantitative and qualitative data fromrnprimary and secondary sources. A total of 121 employees of the EAL involved in a surveyrnquestionnaire. Besides, management organs of the EAL participated as key informants. Moreover,rnpertinent theoretical and empirical literatures were carefully reviewed. The analysis involvedrnappropriate techniques. The quantitative data analysis involved statistical models such as descriptiverntools and inferential statistics, among others, likemean comparisons, correlations,cross-tabulations,rnchi-square tests as well as ordinal logistic regression. Whereas content and contextual analyses werernused for collating qualitative information, and review of secondary data that were used to complementrnand/or supplement the quantitative analysis.rnFindings of the study uncovered positive developments as well as gaps at that EAL in terms ofrnproperly accommodating the diversity factor. Eventually, the study draws conclusions, inter alia,rnworkplacediversity constitutes the salient determinants of employees’ perceived performance. The morernEAL’s staff is diversified; especially by gender and nationality it is highly likely that employees’rnperformance increases, which is benign to the realization of the company’s aspirations. Finally,rnrecommendations are put in order for improved diversity management policy and practices at the EALrnand like-minded organizations. Equally important, given about 58% of the determinants remainedrnunexplained by this research, further research undertakings in the area is imperative - arnrecommendation directed towards the academic community