Ethiopia’s diverse work farce consists of more than 80 ethno-cultural groups. The purpose of this study is to examine the effect of managerial concerns for diversity related issues on employees’ perceived performance. The study is quantitative in its approach and explanatory in its design. Cross sectional research method was used to collect data from 350 employees of commercial banks in Ethiopia. The findings of the study reveal organizations’ moderate concerns for diversity related issues. The correlation analysis portrayed that there are significant relationships between managerial concerns for diversity related issues and employees’ perceived performance. The regression results uncovered that 20.5% of variations in employees’ job performance are explained by managerial concerns for diversity related issues.