The resource-based view of the organization conceptualizes diversity as a valuable, scarce and difficult to imitate resource. The phenomenon of diversity, specifically gender diversity, is fast becoming an inevitable reality for the contemporary organizations as an increasing number of female workers are joining the formal work force both in the developed as well as the developing world. While ample focus exists upon recruitment, managerial training and a change in overall culture of the organization for effective diversity management, empirical research to study the share of organizational practices in creating a conducive (or hostile) work climate for the newer variety of workers remains sparse. This qualitative research study, conducted in the public sector using the Federal Civil Service of Pakistan as the context, purported to examine the role of organizational practices in the overall agenda of managing (or mismanaging) diversity in the organizations. It was revealed from the empirical data of this study that the so called 'gender neutral' practices of the organizations, pertaining to face-time system 24/7, job rotation and training & development, are in fact thoroughly oriented towards the traditional male worker and evidently responsible for creating a significant stumbling block in the job performance of female employees. It was also found that the organizations' bid to cater the heterogeneous work force of today with the homogeneous policies of yesterday is in direct discord with the basic tenet of diversity management pertaining to acknowledging, supporting and appreciating the heterogeneous perspectives and proves counterproductive in carrying out the diversity agenda. The paper discusses policy implications in view of the changing landscape of our work organizations and emphasizes on diversity management practices using gender sensitive rather than gender neutral practices at workplace.