I'm trying to draw an ER diagram describing the following:
-"Department" employs "Employees"
-Some "Employees" are "Special" and have more attributes
-Some of the "Employees" ("Special" and non special) are "Managers"
-"Managers" manage "Departments"
So, to convey this I have:
Department ------(employs)------- Employee-----<--------Special
| |
|-----------(manages)----------
From my understanding, I cannot have 2 relationships between 2 entities. How do I deal with this situation then?
There is no reason you can't have multiple relationships between the same two entities, your understanding is wrong in this respect.
You have to be certain, of course, that the relationships capture different information and that you haven't, say, mistaken the two aspects of a single relationship as two different relationships. Your example seems to be a good candidate for having two relationships between the two entities.