This study mainly intends to explore whether there are any undesirable challenges andrnproblems (limitations) in the implementation process of human resource performancernManagement in one of the public owned enterprises i. e. the Ethiopian InsurancernCorporation (EIC).rnThe main objective of the study is to assess and identify the challenges encountered inrnthe process of implementation of human resource management in the Corporation whichrnClosely examined. To this end, both the primary and secondary data were gatheredrnThrough questiormaires and various documents; and analyzed quantitatively throughrnFrequency and percentage values.rnThe results provided indicate towards the following conclusions. In the process of settingrnStrategic planning and performance planning the involvement of employees is notrnSufficient, training and development of staffs in EIC is not programmed or scheduled,rnThe existing performance evaluation of the employees of the Corporation is more ofrnBehavioral measurement rather than achievements oriented, and the rewarding policy ofrnThe Corporation is not clear.rnRelying on the above conclusions, among others, some of the recommendations arernGiven based on the findings include that, in the process of setting vision, mission,rnStrategic plan and performance standard, employees have to participate actively andrnAdequately and the strategic plan has to be cascade to lower level units further more. ThernConducting performers appraisal system has to be more of result oriented thanrnBehavioral measurements, and to enhance the efficiency of employees, there should bernClearly stated policy regarding rewards to high perfumers and actions against to belowrnAverage performers.