A study was done to test four hypotheses on the orientation of American Urban Administrators toward cultural diversity management in the public sector workplace. The study sought to test: (1) the extent of familiarity with the literature on cultural diversity; (2) relative ranking of cultural diversity management capabilities; (3) how women and minority administrators ranked these capabilities as compared to white male administrators, and (4) graduate education in public administration as an indicator of managerial competency. A mail survey of 500 city managers and human resource management directors in United States cities of populations over 50,000 was conducted in summer 1993 and resulted in a total of 99 respondents. Among the major findings were that a third of respondents were not familiar with the literature on cultural diversity, particularly the Hudson Institute's study, "Workforce 2000". Cultural diversity management competency was considered as important by an overwhelming majority of these participants who ranked it overall as 6th highest among 19 listed competencies. In general, women, minorities and administrators with professional public administration education demonstrated greater sensitivity toward cultural diversity management than did other respondents. Of all respondents 85 percent viewed such diversity competencies as very important but among women 97 percent and among minorities 86 percent viewed these competencies as very important. An appendix contains the survey instrument. (Contains 27 references.) (JB)