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Persistent patterns of employment segregation have long been challenged through what is here called “the discourse of equity”. Associated equity legislation and equal employment policies have not succeeded in changing these patterns. “The management of diversity”, a newly‐developing discourse, is claimed by its proponents to encapsulate traditional equity issues in a more managerially compelling format. Additionally, through this new discourse, progressively addresses issues associated with managing diverse people in a global context. Argues that, in the context of globalizing capitalism, a new homogeneity with different patterns of exclusion is being achieved. The pragmatic focus on “the management of diversity” may diffuse the emancipatory imperative implicit in “the discourse of equity”. Urges an examination of the extent to which traditional equity concerns have been co‐opted to divert attention from new forms of systemic employment segregation.

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