The introduction discusses about the background of diversity management of human resources which started in USA during the First World War. The government of the day was in urgent need of employees for the war activities, in order to perform exclusively better than the competitors, the organization need to recruit and select high quality employees for the present and future HR needs. The organization need to be diversified in its human resource management to accommodate the affirmative action and equal employment opportunity. The objectives of the study are; to investigate the effect of affirmative action, equal employment opportunity and diversity management on organizational productivity. The research questions are; to investigate the effect of affirmative action, equal employment opportunity and diversity management on organizational performance. The study will be of importance to management of water companies and other parastal companies, while the scope of the study which will be limited by the employees of water companies in the coastal region. Literature review discusses the theoretical review that includes the discrimination and fairness theory, the access and legitimacy theory, and the emerging diversity paradigm theory while the empirical review discusses the review of the experimented or experienced rather than ideas or theories. Diversity in the workplace meant acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practices and public assistance status. Women in the workplace, the study shows that the company with a reasonable number of women employees in key positions tent to perform better. Affirmative action is the preferential treatment of all protected groups, which include race, sex, age, handicapped, or national origin. The descriptive research was used to collect data by use of observation, questionnaire and interview guide. The population of 1872 employees of the Water companies were the base which the sample size of 188 respondents were drawn. The stratified random sampling technique was used, where employees were grouped into Managers, Supervisors, and Subordinates strata. The research instruments included the interview guide, and questionnaire. The data collection procedure-primary data was collected from respondents, while the secondary data was from HRM textbooks, relevant journals and newspapers and analysed using SPSS computer package. The findings of the study have shown that if equal employment opportunity, gender mix, and affirmative action are considered, there will be increase in employee productivity. There is positive relationship between diversity management and performance.