Unlike the Dergue regime, the current ruling party EPRDF decentralizes its power to the federalrnand regional governments. In the same line, each regional government also formallyrndecentralizes adequate decision-making power to lower administrations level. This aims atrnpromoting decentralization and getting the people together. Consequently, each regionalrngovernment level has among other things, the right to use its public administration, recruit,rntransfer and promote.rnThis research attempts to assess the implementation of HRM functions in Addis Ababa CityrnGovernment under a decentralized context in Ethiopia using questionnaires collected from tenrnselected sectors and secondary data from official HRM documents of the AACSA and that ofrnMCSC. The finding reveals better performance of HRM practice compared to centralizedrnadministrative system. However, promotion, performance assessment and reward system are notrnperformed well as there are some indications from the findings. Moreover, to some extent therncurrent wage structure and the minimum requirement criteria set by the CSA hinders sectorsrneffort to attract the best candidates. Similarly, selection is often distorted by interference. Thernstudy also depicts the need for additional training, as the performance in some sectors level is notrnsatisfactory. Besides, in some instance lack of equal access to training and need assessment is alsornimproper.rnThe execution of BSC also shows that the need to make the working environment morernconducive. Likewise, in some sectors the uniform salary scale the country follows does not attractrnvarious professionals and hence not fully improve service delivery. Finally, the support of thernCSA to the sector bureaus is minimal. Despite the above stated problems in the region, there is arnpositive link between decentralization and HRM as it gives each level of government to exerciserntheir power in making decision on HRM issues without waiting another decision maker.rnMoreover, conducting training, creating strong link between performance and reward, makingrnthe performance assessment system more open and carrying out continuous follow up shouldrnmake the decentralization process more sustainable