With the advent of democracy in South Africa in the early 1990s, the new government had to introduce major social, economic and political changes in order to undo the damages inflicted by many years of both colonialism and apartheid. These changes included the scrapping of discriminatory legislations and drafting of new laws to regulate employment practices. Amongst the pieces of legislation that the new South African government put in place, the Employment Equity Act, (Act 55 of 1998) was a major turning point in the elimination of discrimination at the workplace and redressing the injustices of the previous regimes. The Act is aimed at regulating the employment practices in an attempt to make the workplace a true reflection of the South African demographics. As a result, the promulgation of the Act had a major impact on the organisations in South Africa and has affected the way they now do business. Although the Act has been in existence for 14 years, progress in the implementation of employment equity and affirmative action in organisations in South Africa has been far less significant, particularly in the representation of women in managerial positions. In South Africa, an overwhelming majority of managerial positions are still occupied by men, with marginal women occupying management positions. Thus, women are still experiencing discrimination and under-representation at the workplace. Noting this trend at Amatola Water Board, the researcher decided to investigate the extent of progress the organisation has achieved in the implementation of its Employment Equity Plan 2009-2014. The objectives of the study were to identify factors that could assist the organisation to effectively implement the Plan, identify the impediments that pose challenges to effective implementation of the Plan in the organisation, and establish the perceptions of employees on the implementation of the Plan in the organisation. To collect data for the study, the researcher used a qualitative research approach. In this regard, the researcher used questionnaires and interviews to collect qualitative data. A sample of fifty employees was selected for the administration of questionnaires and four additional employees were selected for interviews. Both samples were selected by purposive sampling. The study has established that employment equity is still a challenge that South African organisations are struggling to implement. The study has revealed that, at Amatola Water Board, there are indeed various factors that contribute to the low representation of women in managerial positions. These factors include the lack of management support for the implementation of the Employment Equity Plan, recruitment processes that fail to recruit sufficient numbers of qualified applicants, training and development practices that fail to produce the required number of qualified employees, unconducive organisational culture, veiled racial and gender stereotypes, and inadequate communication. Suggestions and recommendations to address these challenges have been espoused.