In response to demographic change organizations in Germany and Japan have recently begun to adapt their human resource management practices to embrace employees with diverse backgrounds: e.g. females, foreigners, or older workers (aged fifty and older). Based on a survey of 209 organizations we compare the current situation of diversity management practices in the two countries. Our findings indicate that, due to institutional differences, the scope and focus of diversity management varies significantly. Japanese diversity management focuses primarily on gender, whereas German organizations adopt a broader approach. While Japanese organizations consider communication and HR initiatives more important, German organizations assign a higher importance to practices integrating diversity in everyday work.