The study assesses current performance management practice in the College of Business and Economics at Addis Ababa University. In the study, quantitative descriptive cross-sectional research method was used to address the objectives of the study. Target population size in the College was 352 staff in Academic Year 2017/2018. A sample of 108 was selected using multi-stage sampling technique. Structured questionnaire, interview guide and documentary analysis matrix research instruments were used to collect the pertinent data. The major findings of the thesis were: the employees of the College did not have a good level of perception of performance management. The administrative staff members expressed more or less their agreement than the disagreement on the practice of alignment, performance pre-requisites, performance planning, performance assessment and performance management review. Moreover, the respondents somehow agreed with issues about the practice of performance renewal and re-construting. Conversely, the staff agreed with those performance management effectiveness aspects of the College. It is also concluded that there are good and promising practices of the performance management aspects. But these change management interventions are surrounded by certain challenges which have emanated from a low level of awareness of performance management and related issues, and difficulty in monitoring and evaluation framework. Based on the findings, the College is advised to take corrective measures that would improve a thoughtful of working environment in which every member of the College staff is properly and fairly rewarded to be creating motivation. Thus, it is recommended that there should be a participatory approach in all activities of the College, well-informed and strategically-tailored preparation and practice of performance management which may address those challenges in the College.rnKeywords: College of Business and Economics including School of Commerce, Performance Management Practice, performance outcome, work environment