The popularity of diversity management in higher education has grown due to various reasons, among them students’ increasing mobility within the European Higher Education Area and the demand for inclusive learning, teaching, and service environments. This chapter compares the diversity of students, legal framework conditions, and strategic approaches of universities in Germany and Austria. It analyzes how diversity is being negotiated in light of new public management demands at these universities. Drawing on institutional theory, we understand the introduction of diversity management as an organizational strategy to conform to institutional norms and to thereby achieve legitimacy. The homogenization effect (i.e., the tendency of organizations to become more similar) that derives from these social norms is counterbalanced by different national contexts, including different historical, legal, and demographic developments and resulting in various forms of implementation of a rather broad concept.