This study is concerned with the performance management in the Addis Ababa CityrnAdministration with taking Addis Ketema Sub-City Woreda 2 as its case. To this end, the studyrnhas made an effort to thoroughly look into the implementation, achievements and constraints thatrnhave taken surface in the whole performance management process and system. The study, withrnprime intention to find out and describe the roots of the problems and constraints, was gearedrntowards answering key research questions pertinent to performance management in the studyrnWoreda. It has made an effort to identify and investigate achievements and constraints associatedrnto application of the Balanced Scorecard (BSC) which is being used by Addis Ababa CityrnAdministration and its Sub-City and Woreda level agencies/offices as a performancernmanagement tool since 2010.rnAll the employees and head of sector offices (167 individuals in total) in the Woredarnadministration have been taken as study population. Data have been collected from 71rnindividuals (which is 50.4% of the entire eligible study population) using structured self-rnadministered questionnaire. Five persons have also been contacted for in-depth interview fromrnAddis Ketema Sub-City (2 informants) and the Woreda 2 administration (3 informants) forrntriangulation purpose. The primary data were analyzed using SPSS (statistical packages forrnsocial sciences) to get descriptive statistics/results. Qualitative data collected through in-depthrninterviews, open-ended questions and document review were analyzed through transcription intornmicro-soft word processing and categorizing and coding based on their themes.rnThe study findings have revealed that the performance management process of the study Woredarnneeds serious considerations to reap some fruits out of it. In a nutshell, the study has found outrnthat the whole process of performance planning, provision of ongoing coaching and technicalrnsupport to the implementing agencies and individuals, recognition and reward, and ensuringrnperformance accountability both at individual employee and organizational levels were not onrnthe right track to bring about meaningful performance improvement. The problem is associatedrnto the need to shift to and institutionalization of effective modern performance managementrnsystem and practice on the one hand, and in ability to break away from traditional bureaucraticrnmentality and practices on the other.rnKey words : Performance Management, Addis Ababa City Administration, Addis KetemarnSub-City Woreda 2, Balanced Scorecard (BSC), Performance Management tool