Book

ADDIS ABABA UNIVERSITY
SCHOOL OF GRADUATE STUDIES
HUMAN RESOURCES MANAGEMENT PRACTICE IN

SELECTED CIVIL SERVICE BUREAUS OF ADDIS ABABA CITY
GOVERNMENT
BY
GIRUM BERHANU
June 2014
Addis Ababa
ADDIS ABABA UNIVERSITY
SCHOOL OF GRADUATE STUDIES
HUMAN RESOURCES MANAGEMENT PRACTICE IN

SELECTED CIVIL SERVICE BUREAUS OF ADDIS ABABA CITY
GOVERNMENT [
In Partial Fulfillment of the Requirements for obtaining the Degree

of Masters of Arts in Public Management and Policy Specialization
Development Studies
By
GIRUM BERHANU
Advisor
Worku Mekonnen (PhD)
June 2014
Addis Ababa
Addis Ababa University
School of Graduate Studies
Department of Public Administration and Development Management
This is to certify that the thesis prepared by Girum Berhanu, entitled: Human Resources
Management Practice in selected Civil Service Bureaus of Addis Ababa City Government is
submitted in Partial fulfillment for the Degree of Masters of Arts (Public Management and
Policy, Development Management Stream) complies with the regulations of the University and
meets the expected standard with respect to originality and quality.
Signature by the Examining Committee:
Internal Examiner _____________________ Signature _____ Date ____________
External Examiner _____________________ Signature _____ Date ____________
Worku Mekonnen (PhD) __
Advisor Signature Date
Mr. Adem Kedir

Chair of Department Graduate Program Coordinator
HUMAN RESOURCES MANAGEMENT PRACTICE IN SELECTED CIVIL SERVICE BUREAUS OF ADDIS ABABA CITY GOVERNMENT
[
Acknowledgment
The completion of this research is a result of many people’s effort that deserves
appreciation.
I am thankful for my supervisor Dr. Worku Mekonnen for his continuous support and
intellectual guidance during all stage of this research and for his valuable feedback on
my research design and draft which enabled me to reshape and organize the whole
paper.
I am grateful for all my respondents for providing me necessary and relevant

information. In the same line, for my research assistant Mr. Abdi Berhanu (My Brother)
who disseminated and collected the primary data, for Mr. Lemma Eshetu and Mr.
Kefelegn H/Markos from the AACSA who helped by providing me with the necessary
secondary data.
Lastly, my sincere thanks goes to my families who have always been helpful as their
love and invaluable support has contributed a lot to the accomplishments of this paper.
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Table of Contents
Acknowledgment ....................................................................................................................................... i
Table of Contents ....................................................................................................................................... ii
List of Tables .............................................................................................................................................. iv
List of Figures ............................................................................................................................................ iv
List of Acronyms ........................................................................................................................................ v
Abstract....................................................................................................................................................... vi
Chapter 1 ..................................................................................................................................................... 1
Introduction ................................................................................................................................................ 1
1.1. Background of the Study .......................................................................................................... 1
1.2. Background of the Organization.............................................................................................. 2
1.3. Statement of the Problem and Research Questions............................................................... 3
1.3.1. Statement of the Problem .................................................................................................. 3
1.3.2. Research Questions ............................................................................................................ 7
1.4. Objective and Significance of the Study.................................................................................. 7
1.4.1. Objectives of the Study ...................................................................................................... 7
1.4.2. Significance of the Study ................................................................................................... 8
1.5. Scope of the Study ...................................................................................................................... 8
1.6. Limitation of the Study ............................................................................................................. 9
1.7. Organization of the Report ....................................................................................................... 9

Chapter 2 ................................................................................................................................................... 10
Literature Review and Conceptual Framework .................................................................................. 10
2.1. New Public Management Theory (NPM) ............................................................................. 10
2.1.1. Critics of New Public Management ............................................................................... 12
2.2. Human Resource Management (HRM) ................................................................................ 13
2.2.1. HRM and Personnel Management (PM)....................................................................... 14
2.2.2. HRM in the Public Sector ................................................................................................ 17

2.3. Recruitment and Selection ...................................................................................................... 18
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2.4. Performance Appraisal............................................................................................................ 18
2.5. Employees Training and Development ................................................................................ 21
2.6. Rewards ..................................................................................................................................... 22
2.7. Decentralization ....................................................................................................................... 23
2.8. Devolution................................................................................................................................. 24
2.9. Rationale of Decentralizing HRM Functions ....................................................................... 24
2.10. Public Personnel or the Civil Service Definition.............................................................. 25
2.11. The Public Sector and the Civil Service ............................................................................ 26
2.12. Preceding Research Works on Decentralization in Ethiopia ......................................... 27
2.13. Customizing and Linking the Concepts to the Topic of the Study ............................... 29
2.14. Background to the Executions of HRM Functions in Ethiopia ...................................... 30
2.15. Human Resource Management in Addis Ababa City Government ............................. 33
2.16. Size of the Addis Ababa City Government Civil Service ............................................... 37
Chapter 3 ................................................................................................................................................... 38
Research Design and Methodology....................................................................................................... 38
3.1. Research Design ....................................................................................................................... 38
3.2. Research Methodology ............................................................................................................ 38

3.3. Data Collection ......................................................................................................................... 40
3.4. Sampling Design and Size ...................................................................................................... 41
3.5. Data Presentation and Analysis ............................................................................................. 43
3.6. Validity and Reliability ........................................................................................................... 44
3.7. Ethical Concern and Consent Statement............................................................................... 44
Chapter 4 ................................................................................................................................................... 46
Finding and Analysis............................................................................................................................... 46
4.1. Analysis of Responses from AACSA .................................................................................... 46
4.2. Analysis of Response from Sector Bureaus .......................................................................... 56
4.3. Comparative Analysis ............................................................................................................. 65

Chapter 5 ................................................................................................................................................... 69
Summary, Conclusion and Recommendation ..................................................................................... 69
5.1. Summary ................................................................................................................................... 69
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5.2. Conclusion ................................................................................................................................ 72
5.3. Recommendations.................................................................................................................... 72
References ................................................................................................................................................. 74
Annex ......................................................................................................................................................... 77
List of Tables
Table 2.1 Personnel versus HRM 17
Table 3.1 Expected Number of Respondents from ten selected
Civil Service Bureaus 42
Table 4.1 Respondents’ Profile 47
Table 4.2 Compared to the previous system, has decentralization
facilitated HRM Functions? (AACSA) 48
Table4.3 Ability and skill level to carry out HRM tasks 48
Table4.4 Training Assessment 49
Table4.5 Performance of Bureaus 51
Table 4.6 Assessment of performance appraisal 52
Table 4.7 Assessment of AACSA support 54
Table4.8 Recruitment Channel 57
Table 4.9 Recruitment Procedure (1) 58
Table 4.10 Recruitment Procedure (2) 59
Table 4.11 Selection Criteria 60
Table 4.12 Selection Procedure 60
Table 4.13 Training and Development 61
Table 4.14 Reward System 64
Table 4.15 Assessment of AACSA support for sectors (Sector) 65
List of Figures
Figure 2.1 Organization Structure of AACSA 34

Figure 2.2 The size of A.A. Civil Service for the last 12 years 37
Figure 4.1 Responses on Decentralization (Sectors) 56
Figure 4.2 Responses on Performance Appraisal (Sectors) 62
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List of Acronyms
AACSA Addis Ababa Civil Service Agency
ACR Annual Confidential Report
BOFED Bureau of Finance and Economic Development
BPR Business Process Reengineering
BSC Balanced Score Card
BOTID Bureau of Trade and Industry Development
CBB Capacity Building Bureau
CSA Civil Service Agency
CSRP Civil Service Reform Program
EPRDF Ethiopian Peoples’ Republic Democratic Front
FCSA Federal Civil Service Agency
HR Human Resources Management
HRD Human Resources Department
HRM Human Resources Management
MCS Ministry of Civil Service
NPM New Public Management
PM Pubic Management
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Abstract
Unlike the Dergue regime, the current ruling party EPRDF decentralizes its power to the federal
and regional governments. In the same line, each regional government also formally
decentralizes adequate decision-making power to lower administrations level. This aims at
promoting decentralization and getting the people together. Consequently, each regional
government level has among other things, the right to use its public administration, recruit,
transfer and promote.
This research attempts to assess the implementation of HRM functions in Addis Ababa City
Government under a decentralized context in Ethiopia using questionnaires collected from ten
selected sectors and secondary data from official HRM documents of the AACSA and that of
MCSC. The finding reveals better performance of HRM practice compared to centralized
administrative system. However, promotion, performance assessment and reward system are not
performed well as there are some indications from the findings. Moreover, to some extent the
current wage structure and the minimum requirement criteria set by the CSA hinders sectors
effort to attract the best candidates. Similarly, selection is often distorted by interference. The
study also depicts the need for additional training, as the performance in some sectors level is not
satisfactory. Besides, in some instance lack of equal access to training and need assessment is also
improper.
The execution of BSC also shows that the need to make the working environment more
conducive. Likewise, in some sectors the uniform salary scale the country follows does not attract
various professionals and hence not fully improve service delivery. Finally, the support of the
CSA to the sector bureaus is minimal. Despite the above stated problems in the region, there is a
positive link between decentralization and HRM as it gives each level of government to exercise
their power in making decision on HRM issues without waiting another decision maker.
Moreover, conducting training, creating strong link between performance and reward, making
the performance assessment system more open and carrying out continuous follow up should
make the decentralization process more sustainable.
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Chapter 1
Introduction
1.1. Background of the Study
The quality of human resources is a critical factor in the capacity of the government to
deliver on its mandate. Human Resource Management (HRM) is critically important in
that it ensures human capital is well managed and that all issues relating to this
resource are effectively dealt with. These issues include compensation, recruitment and
selection, performance management, organizational development, safety and wellness,
employee motivation, communication, administrative support and training (Magijima,
2010:2).
To a very large extent, the nation's ability to achieve its goals through public
administration depends upon the performance, honesty and motivation of public
employees. Although we think in terms of institutions and principles, in the final
analysis organizations and governments are not charts and words on pieces of paper;
they are made up of people and it is necessary to somehow organize the conditions of
their employment (Rosenbloom, 1986:4).
The enormous and diverse roles of government is planned and exercised to a large
extent by the public employees, the civil service. As the role and activities of modern
government are very large and complex in nature, so are the size and nature of the civil
service. Pubic administrative jobs range from the exploration of outer space to
sweeping of the streets; some have a nationwide impact; others have virtually no
responsibility for policy making and simply carry out the mundane governmental
tasks. Public administrators are doctors, lawyers, scientists, engineers, accountants,
budgeters, personnel officers, managers, clerks, typists, manual laborers and
individuals engaged in a host of other occupations and functions. Furthermore these
diversified groups of people come from different cultural, geographic and ethnic
background.
The management of these diversified civil services which are crucial in the national
development is one of the major components of public HRM. This part of public
administration which deals with the management of civil servants at work places, i.e.
public HRM has, therefore attracted the attention of many scholars and of public
administrators (Ibid, p.4).
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This research assumes that if an organization hires poor performers, it cannot be

successful even if it has perfect plans, a sound organizational structure and finely tuned
control systems. Competent people must be in post to ensure that organizational goals
are attained. Even though many organizations have access to advanced information
technology, the people are the one who make the real differences. Therefore, focal
attention should be given to human resource activities.
In Ethiopia, depending on the government’s ideology the country’s policies and

strategies are executed. From early times up to now different governments with
different policies, rules and regulations came in to power. For instance, the Derg regime
(1974-1991) had its own socialist idea with a centralized policy system. Consequently,
designing of policies and decision making took place in a centralized system. In
addition to this, all the civil service organizations were highly centralized (Paulos,
2001).
Unlike the Derg regime, the 1995 federal constitution assigned powers and authority to
the Federal Government, the nine regional state governments and two autonomous
administrative regions Ayenew, (1998). In doing this, the government of Ethiopia
initiated a Civil Service Reform in 1996 to build the capacity and implement
decentralization. According to the constitution, each regional state has a quasi-
sovereign status with considerable power and authority; among other things grants the
right to use its own public administration and own courts. In addition to this, each
regional state government has to formally devolve adequate decision-making power to
lower administration levels. This aims to promote democratic decentralization and get
government closer to the people (UN – HABITAT, 2002:89). As a response to this
nationwide scheme, the Addis Ababa Civil Service Commission also decentralized the
major human resources management decisions to respective implementing agencies.
Among which recruitment, selection, promotion and transfer of employees are some.
1.2. Background of the Organization

The state government has established the Addis Ababa Civil Service Agency to decide
on the duties and responsibilities of executive bodies in the region as per the Ethiopian
transitional government proclamation no. 14/2001 G.C. When region 14 was established,
Civil Servant Administration Bureau was established under that in January 2001 G.C.
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Later in 2003 G.C. it was reestablished based on the Proclamation no. 2/2003 G.C. as
Civil Service Commission when the administration was reestablished again as
decentralized administration to take over the then Federal Civil Service Agency (FCSA)
which is currently Ministry of Civil Service Commission (MCSC) in line with the
decentralization process to enable regions and sectors to carryout administrative
functions. Finally in 2009 G.C. it was once again re-established when the city’s
administration executive bodies were ascertained and since then it is known as Addis
Ababa City Administration Civil Service Agency.
The AACSA’s power and duties include issuing directives and guidelines, control and
monitor all personnel activities in the region, determine the function classification and
grades to which all positions in the government offices shall be distributed as well as
the qualification requirements for each class of position (AACSA, 2009)
Moreover, the agency conducts studies on salary scales to be applicable to civil

servants, submit these to the regional state council for approval and administer their
proper implementation. It also provides support by conducting training based on the
need assessment of the bureaus. The agency also has the duty to collect and compile
statistical data related to civil servants. Besides, the administrative tribunal will hear
and decides appeal brought by civil servants (Ibid).
Issues which are the theme of public human resources management include
organizational arrangement, recruitment, job assignment, performance appraisal
training and development, promotion, employees’ compensation, reward, fringe
benefits and exit procedures. In this research paper, efforts will be made to assess the
practices and maladies particularly on the major dimensions of HRM which include
recruitment and selection, training and development, performance management and
reward system with a focus on selected Civil Service Bureaus of the Addis Ababa City
Government.
1.3. Statement of the Problem and Research Questions

1.3.1. Statement of the Problem
As opposed to centralization, decentralization is often supported on the grounds that it

promotes efficient and effective service delivery. Several countries in Sub Saharan
African undergoes through this process. However, these decentralization programmes
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are designed on an ideological basis rather than on pragmatic reality on the ground.
This is further worsened by lack of information regarding local political economy issues
that may hamper the success of decentralization (Olowu, 2001:1).
Similarly decentralized Human Resource Management (HRM) functions are of concern,

as Olowu (2001:22) stresses that many professionals are reluctant to work in local
government for fear of reductions in their status or job security. Furthermore, problems
such as high incompetence, lack of effective personnel to perform all-round recruitment
and selection tests exist (Adebabay, 1998:27). These have mainly prevented civil service
organizations from delivering effective service.
Ethiopia has entered into a promising path of political and social development,
particularly with the decentralization of powers to the respective public sector agencies
and regional self-governments under the current administration since the year 1995.
This process is somehow new to the sector in comparison to the previous system. This
process of decentralization had helped in facilitating the implementation of HRM
functions in general. Nonetheless, it didn’t go unchallenged as abuses of authority,
inefficiency, corruption and irresponsiveness still prevail in the administrative
structures of all levels of governments in Ethiopia (Federal Civil Service Agency, 2005)
cited in Paulos (2007:362).
In line with this, major functions of HRM like recruitment and selection of employees
takes place not based on manpower planning but rather on the basis of solving
immediate problems. Training is also not given for immediate personnel’s, no
accountability procedures are in place to take measure whenever decision makers
commit mistakes within their authority, promotion is not based on performance,
inadequate screening (examination and interviews) not based on merit principles (Ibid).
In the same line, the recently introduced BSC system also suffers from poor human
capacity, lack of transparency, weak follow-up, loose linkage between performance and
reward that hamper the system (Ministry of Civil Service, 2013).
But at the same time, little has been researched on the decentralization of Personnel/
HRM functions and the attendant impacts on organizations from delivering effective
service.
In this regard the attempt made by scholars like Meheret and Paulos (2000) and
Kassahun and Aklilu (2000) Yigremew (2001), Getachew (1997) and Tegegn and
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Kassahn (2004) are praise worthy. Prior to 2002 HRM function decentralization
initiatives, human resource functions in the Addis Ababa City Government were highly
centralized with a strong power at the city’s Civil Service Commission. Government
Offices were responsible only to recruit, promote, demote, punish, and transfer, etc with
prior acceptance, approval, consent and with checks detailed evaluation of the City’s
Civil Service Commission. This was a unified type of human resource administration
where the CSC was at the apex of all powers with regard to HRM functions.
Since 2002, inconsistent with the proclamation No. 6/2003 that stated the Commissions’
power to delegate its powers and duties to government offices for the purpose of
efficiency and effectiveness of the civil service, the state government has made a rapid
decentralization of human resource functions. According to the CSC, the justification
for the decentralization was that the commission encounters myriads of problems to
handle its responsibilities and powers (Image, 2003: 7). Hence, to reduce the workload,
the CSC delegated some of its powers and functions to respective government offices
and bureaus of government organizations reserving some of the powers to it.
According to the HRM directives issued by the AACSA and delegated the HRM duties
and responsibilities to each government office, all HRM functions should be consistent
with the principles of accountability, openness, transparency and merit (AACSA, 2003:
2). Furthermore, it stated that an authority or a member of a committee, who unlawfully
gives an appointment, promotion, salary increment or other benefits, will be liable both
for the relevant criminal penal codes and for the unjustifiable expenses (Proclamation
No.6/2002:37). This indicates that power and accountability are one side of the coin.
However, after the decentralization of HRM functions, critical problems were

repeatedly reported and referred to the AACSA from different government bureaus.
Some of these problems are mentioned below:-
1. Shortage of qualified manpower (including councilors) to effectively interpret

and implement the rule and directives;
2. Higher labor turnover (including appointees and councilors);
3. Lack of implementing capacity;
4. Deterioration of employee morale;
5. Deterioration of sense of responsibility and accountability.
6. "Brain drain" of most of experienced and educated civil servants from
government organization to private sectors, etc.
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The above mentioned negative consequences of the hurried decentralization of HRM

functions were compounded by (1) the absence of effective controlling, inspection and
grievance handling mechanism, and (2) the high intervention of politicians in the
redeployment activities. These problems are resulted in the weakening of the rule of
law, created opportunity for contravening employees’ legal and constitutional rights
and generally deteriorate the endeavor for successful human resource decentralization
and good local governance.
Researches on the area indicated that a badly managed decentralization will damage
the morale and can result in frustration and dissatisfaction of employees. Therefore,
according to Shin (2001) there are times when waiting is important before
decentralization program is implemented (Shin, 2001:1096).
It is well recognized that shortage of human resources, particularly professional experts

at respective government offices in required level are the fundamental and major
problem to implement any reform program designed by the government. Thus, it is not
possible to render service to the public, in terms of quality, quantity and time specified.
To mitigate the problems created by shortage of manpower, one can see that more than
one responsibilities and activities have been assigned for one employee. This is a short-
term solution to the problem. In Ethiopia, government bureaus lack a well-functioning
organizational structure, and face an acute shortage of skilled personnel, offices and
equipment to effectively discharge their constitutional responsibilities (MOCB,
2003:40).
There is little attention to build human resource capacity. According to Adebabay and
Meseret, (2004), the low performance results and ineffective implementation of annual
plans in sectors could be attributed to the lack of human resource capacity. Human
resource is a fundamental element in most civil service organizations (Adebabay, 2004:
30; Meseret, 2004: 24). Therefore; human beings should remain the centerpiece of
capacity building. The objective of capacity building should be to develop individual
capabilities, incentives and institutions to enhance their efficiency and effectiveness,
since in the end, it is always people that make things work (MOCB, 2003:125).
On the other hand, little efforts have been made to advance the public human resource
management through systematic and pragmatic studies. Ethiopia’s civil service system,
therefore, is in urgent need of in-depth analysis that gears towards defining existing
problems in specific contexts. The idea behind this research is to initiate such studies in
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the public human resource management in Addis Ababa City Government with the
context of decentralization to seek solutions to the malpractices of the old-fashioned
system that prevailed over the decades.
1.3.2. Research Questions

This research mainly tries to address the following research questions:
 What is the link between decentralization and HRM practice in public sectors in
Ethiopia?
 How effective are the HRM practices in the civil service bureaus of the city
government?
 Why do problems associated with the four main HRM functions of recruitment
and selection, training and development, performance management and reward
system occur at decentralized level?
 How does implementation of HRM activities affect the effectiveness of
decentralization?
1.4. Objective and Significance of the Study

1.4.1. Objectives of the Study
The main objective of the research is to analyze the prospects and constraints in the
implementation of human resources management practice in Addis Ababa City
Government. The research will also examine the current policies, procedures and
practices of public HRM in the state government and assess its strengths and
weaknesses and make recommendations. In general the research has the following
major objectives:
I) To study the link between decentralization and HRM practice in public

sectors in Ethiopia.
II) To see how effective the HRM practices are in the civil service bureaus of
the Addis Ababa city government.
III) To investigate HRM problems that occur in the civil service bureaus of the
city government and suggest some aspects to overcome these problems.
IV) Assess how the implementations of HRM activities affect the effectiveness
of decentralization.
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1.4.2. Significance of the Study

Systematic studies and researches in public human resource management enables all
actors and public officials see past and present strength and weaknesses, learn from
their mistakes and capitalize on their strengths. Findings of researches and studies are
means to device flexible, up-to-date and demand driven civil service and to foresee
future requirement.
The study paper has the following basic significances:
I. This research will help to add on the existing literatures on the execution of
the human resources management practices and propose ways of enhancing
harmony and performance in service delivery for the civil servant at the state
government level.
II. To help those responsible to identify the strength and weakness & take
corrective actions to enhance the practice of HRM in the civil service bureaus.
III. The finding will provide basic information on the key challenges or gaps
affecting the effectiveness of the HRM practices as well as provide the possible
solutions for alleviating the major challenges or hindrance.
IV. It may serve as a base for further and detailed study on the practice of public
human resources management.
1.5. Scope of the Study

The study mainly concentrates on one of the four forms of decentralization involving
the transfer of power from the Addis Ababa Civil Service Agency to semi-autonomous
regulatory and implementing agencies. Devolution tackles HRM dimensions of
recruitment and selection, training and development, performance management and
reward system. Because these functions have important aspects such that the impact of
HRM is best reflected in these four main drivers as a change engine. As such, these
human resource activities have an important role compared to other HR activities.
Hence, major focus is given to these selected management activities.
The study covers the Civil Service which is under direct regulation of the Addis Ababa
Civil Service Agency. Public undertakings which are commercial in nature and
administered by labor law are excluded from the coverage of this study. The focus was
on critically examining the recent trends and practices of these four main HR practices
in selected bureaus of the Addis Ababa City Government, identifying major problems
in current policies, procedures and practices and forwarding feasible and workable
recommendations.
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1.6. Limitation of the Study
Although there are many HRM functions, this research limits itself on the four major
functions namely: recruitment and selection, performance appraisal, training and
development and reward. Similarly, it was impossible to cover the whole sectors under
the city government because of time constraints. Therefore, it will not give the full
picture of HRM functions in the region. Moreover, since little research has been done in
this area, it mainly depended on primary data and secondary office documents. It was
very difficult to acquire complete data from record systems in all the sectors, which
stems from insufficiency of space for archives and poor data management systems.
Most informants are also very skeptical when they provide information. When
somebody approaches them for research, after evaluating the researcher’s position
and/or political affiliation, they tend to give out what he/she perceives the researcher
would like to hear and not what actually is on the mind.
1.7. Organization of the Report
This research paper is organized in five chapters. Chapter one deals with the
introductory part which includes objective, problem statement, research question,
significance, scope and limitation of the study. Chapter two is devoted to conceptual
frameworks and literature review on the historical background of HRM practices in the
in Ethiopia and the implementation of HRM in the city government.
An overview of the research methodology to be used to investigate the research

problem will be presented under Chapter three. This chapter covers the research
design, source of data, population, sampling method, data collection procedure and
methods of data analysis. Chapter four on the other hand is devoted to presenting the
findings and analysis of public HRM practice in selected sector bureaus of Addis Ababa
City Government.
The last chapter is the conclusion and recommendation. The findings and policy
recommendations concerning public HRM at the state level will be presented in this
final chapter.
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Chapter 2
Literature Review and Conceptual Framework
This chapter reassesses the literature in New Public Management theory, Human
Resource Management and Decentralization. Literature of New Public Management
will cover issues associated with HRM and Personnel Management. This section
focuses on the discussion of NPM and provides an idea of its link to HRM and
decentralization.
2.1. New Public Management Theory (NPM)
The concept of new public management (NPM) has been considered as inspiring the
initiation of many reforms to improve public service delivery (Poladino, 1999: 1). The
fundamental nature of NPM can be described by the new trends in the public
administration to shift some important insights and values from the private sector
strategy to the public sector to enhance service delivery. These include efficiency,
effectiveness, flexibility, responsiveness, competition, result oriented management,
more explicit and measurable performance standards, more active control based on
preset output indicators and answerability. However, the achievement and failure
stories propose that the outcome of the implementation of reforms to improve service
delivery relies on the general context and mainly on local contingency factors than
general national characteristics (Polidano, 1999:5).
Furthermore, it necessitates new legislation, analyzing the status quo, and subsequently
to design, formulate, refine new operating procedures, train staff how to work with
them, define new roles and appropriate reward and appraisal systems, set new
measurement system in place, inform customers and other stakeholders and work hard
to reduce the anxiety all these novelties have probably caused, both among users and
staff (Pallet and Boukaert, 2000:7-8).
According to Haque (2007:9-10), the major reasons for the adoption of NPM model
include:
a. reduction of public sector’s direct role, redefinition of its role as a

facilitator, and involvement of private sector in service delivery through
means such as downsizing, outsourcing, and partnership;
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b. Restructuring of the public sector for more internal competitionamong its

various units by introducing performance contracts and market-type
mechanisms like the competitive pricing and market testing of various
goods;
c. Expansion of management’s operational autonomy and flexibility in
financial and personnel matters (as found in business management)
through the so-called agencification or conversion of public organizations
into various businesses like autonomous agencies;
d. Assessment of public sector performance by evaluating its final outcomes
or results (rather than inputs or procedures) based on the preset
performance targets or standards; and
e. Reinforcement of customer-orientation by providing greater customer
choice and ensuring better service quality based on user charges.
Different commentators have variously described the doctrines of public sector

management encompassed by NPM and some have identified different phases in the
development of NPM. Nonetheless, there is still a good deal of overlap among the
different accounts of what NPM entails.
Hood (1995: 96) pointed out the following components of NPM:
1. Shift to disaggregation of units in public sector that is, breaking up large

corporatized units around products, funded separately and dealing with one
another on an arm’s length basis.
2. Shift to greater contract based competition both between public sector organizations
and between public and private organizations, move to rivalry as the key to lower
cost and better standards.
3. Stress on private-sector style of management practice like, flexible hiring and
reward system.
4. Stress on greater discipline and parsimony in use of resource by cutting direct cost,
raise labour discipline.
5. Greater emphasis on visible hands-on top management, where managers are
provided more freedom to manage by discretionary power which in turn contribute
to sufficient accountable administration.
6. Explicit standards and measure of performance, goals are defined and performance
are set for success being expressed in quantitative terms.
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2.1.1. Critics of New Public Management
There is no clear definition what New Public Management is. Christensen and Laegreid
(2001:19) state that, the concept is loose and multifaceted and offer kind of shopping
basket of various elements for reformers of public administration. Furthermore, NPM
as a reform measure is being undertaken in many countries of North and South.
However, it is not foolproof and generates some complexities in implementation. Some
also have pointed out that in many countries the avowed objectives of the model are
not being attained. Some of the theoretical justifications are also highly questionable
(Paulos, 2001:4).
NPM is by definition a managerial initiative, which concentrates on control of

subordinates to ensure effective accomplishment of objectives and increase efficiency.
NPM therefore tends to bread management not necessarily in terms of numbers rather
the search for more effective means of control in the name of accountability. There is
increasing pressure to specify and evaluate outcomes beyond output and changing
process. Furthermore, it can be argued that while the decentralization of personnel
management has reduced bureaucratic transaction in one way, it has enhanced them in
another through contracts. A huge amount of time and energy is spent on procedural
specifications and negotiations, statement of corporate intent and purchasing
agreements compared to the preceding, more traditional administration (Gregory, 2001:
237-38).
In addition to these, Drechsler (2005:17) asserts that ‚in the middle of 19th, in Public
Administration it was still possible to believe in NPM, although there were the first
strong and considerable critiques, lately in early 20th highly developed Public
administration (PA) scholarship itself NPM is on the defensive if taken as a global view,
rather than as one of several useful perspectives for PA reform. The question here is
more whether one favors post-NPM or post-post NPM, Weberian-based PA, the latter
being the most advanced, and the most sophisticated, and now termed the Neo-
WeberianState (NWS). What was an option a decade ago is not an option any more
today. In the same line, he argues that in the year 2005, NPM is not a feasible concept
anymore. However, in many areas, both of researcher and the world, as well as in
policy, NPM is very alive and very much kicking‛.
Despite its critics, NPM is said to be stimulating many reforms around the world
making citizens in developing countries aware of improved public service due to
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knowledge transfer. Moreover, one of the driving forces for the emergence of NPM is
that the need for decentralized management so as to break up the vast public
bureaucracies to more self-governing executive agencies and giving managers
increased control over budgets along with accountability (Paulos, 2001:2).
Even though, deconcentration, delegation and privatization may have also an impact
on service delivery, in the context of Ethiopia the government is developing
participatory structures at the local level and devolving administrative power away
from the center. Therefore, having this in mind this research assumes that
decentralization of power to functional authorities or agencies, as one forms of
decentralization will lead to change in the implementation of HRM functions, which in
turn results in enhancement of service delivery in those government agencies (Ibid).
2.2. Human Resource Management (HRM)
In this section, the literature on HRM will be reconsidered, by defining the concept and
explaining its link with Personnel Management (PM). Emphasis will be given on the
practice of HRM in the public sector.
The term HRM does not have a widely accepted definition. Storey(2001:5) cites various
HRM writers, like Noon (1992:17) who is uncertain whether HRM is a map, which lays
claims to being a diagnostic tool aimed mainly at practicing managers. As a model or
theory, HRM is elevated to apposition of scholarly and practical significance in terms of
its analytical and predictive powers; and Keeony and Anthony say that to explain HRM
is to destroy it. Bratton and Gold (2007:7) define:
Human resource management (HRM) is a strategic approach to managing employment

relations which emphasizes that leveraging people’s capabilities is critical to achieving
competitive advantage, this being achieved through distinctive set of integrated
employment policies, programmes, and practices.
Most private sectors compete with each other so as to gain their productivity and hence
to make profit. In contrast, competitive advantage is important in Civil Service Sectors
to enhance effective and efficient service delivery for different stakeholders. HRM, as
Bratton and Gold (2007:7) portray it, underlines a belief that people really make the
difference; people as employees, among other resources, have the capacity to generate
value.
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Moreover, human knowledge and skills are a strategic resource that needs to be
skillfully managed. To this end, it is necessary to integrate employment policies,
programmes and practices with organizational strategy. Therefore, if the employee is so
crucial for organizational success, the responsibility for HRM activities rests with all
line managers and should not be left to HR specialists.
Whereas HRM in different hands may carry mixed connotations it has hard and soft
models (Storey, 2001:7-9). The ‘hard’ version emphasizes the term ‘resource’ and adopts
a ‘rational’ approach to managing employees, that is, viewing employees as any other
economic factor, as a cost that must be controlled. The ‘soft’ HRM model emphasizes
the term ‘human’ and thus advocates investment in training and development, and the
adoption of ‘commitment’ strategies to ensure that highly skilled and loyal employees
give the organization a competitive advantage (Bratton and Gold, 2007:6). Besides, the
hard dimension finds its impetus and legitimation in a market-responsive mode of
action. It emphasizes detached and coolly rational planning. It reflects also the business
strategy focus frequently found in HRM accounts. In contrast, the soft face of HRM
traces its roots to the human-relations schools and emphasizes on communication,
motivation, culture, values and participation (Storey 2001:9).
2.2.1. HRM and Personnel Management (PM)
Nowadays the idiom ‘human resources management’ (HRM) is becoming popular

instead of personnel administration, personnel management or manpower
administration. As Bratton and Gold (1999; 7) stated, personnel management takes
place within a context of change. Its evolution has been significantly influenced by the
dual pressure of public policy and the rise of workplace trade unionism and collective
bargaining.
The shift from the old orthodoxy of personnel management, which views personnel
processes as very mechanistic operations as Cox et al (1994, p52) states, is also
necessitated by concerns about global competition, internationalization of technology
and workers’ productivity (Bratton and Gold: 1999.P4). The mechanistic view of
personnel administration is properly explained in Cox et al (1994, p52) as:
Employees are recruited from a pool of applicants meeting pre-established guidelines.

The hiring process is circumscribed by restrictions on information; employment
applications as well as interview questions are carefully screened to avoid illegal
questioning but to be certain that any bona fide occupational qualification questions are
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included. The fundamental tenants of personnel practice from this perspective are
simplistic. Absenteeism should be reduced; employee turn-over is deplored. Hiring is to
occur based summarily upon the applicant’s ‚fit‛ with the requisite knowledge, skills
and abilities (KSAS) and defined in the position classification guidelines. Promotion is to
be based on merit. While in most cases, a personnel manager could organize his or her
office using this ‚by-the-book‛ and somewhat robotic approach, the manager learns
nothing of why the employees behave as they do. This approach to personnel
management ignores the context in which people work – a critical element to any
understanding of public sector personnel practice.
Thus, the shift from the term personnel management / administration to human
resources management is not simply the matter of choice in the use of semantics; it
involves a paradigm shift in the way of looking at personnel administration processes
and the dynamism involved. As Cox et al (1994, p52) state, an alternative view begins
its examination of personnel practices from the perspective of how to utilize the
contributions of government personnel to achieve the objectives of governance. This
more dynamic view of personnel practice places personnel management at the very
center of governmental activity.
To enlist worker’s full potential and to produce behavior and attitudes considered
necessary for competitive advantage requires three aspects of managerial control:
organizational and job design, organizational culture, and personnel policies and
techniques. Thus the developing managerial orthodoxy now posts the need for
reengineering of organizations towards ‘flat’ hierarchical structures, an enlargement of
job tasks and job autonomy, ideally centered around work teams (ibid).
Furthermore, it is suggested that senior management can direct and inspire workers
through the management of the more intangible aspect of the workplace, such as
beliefs, norms of behavior and values (corporate culture). In addition the new
orthodoxy asserts the need to recruit, develop and reward workers in ways which
create a sustainable commitment to organizations goals and to ensure a ‚high
performance‛ organization (Bratton and Gold: 1999, p4).
According to Armstrong (2001:18), some personnel regard HRM as just a set of initials
or old wine in new bottles. It could indeed be no more or no less than another name for
personnel management, but as usually perceived, at least it has the virtue of
emphasizing, the virtue of treating people as a key resource, the management of which
the directed concern of top management as part of the strategic planning process of the
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enterprise. Although there is nothing new in the idea, insufficient attention has been
paid to it in many organizations. The new bottle or label can help to overcome that
deficiency.
It is also argued that PM and HRM have something in common. First, both have
strategies, which emanate from the business strategy. Second, both recognizes that line
managers are accountable for administering people. Third, the values of PM and at least
the ‘soft’ model of HRM are similar with regard to ‘respect for the individual’,
balancing organizational and individual needs and developing people to attain their
highest level of competence both for their own satisfaction and to facilitate the
accomplishment of organizational objectives. Fourth, both recognize that one of their
most vital functions is that of matching people to the dynamic organizational
requirements: assigning and developing the right person in and for the right job. Fifth,
both use the same selection, competence analysis, performance appraisal, training and
development, and reward management techniques. Sixth, like the soft HRM model, PM
attaches importance to the process of communication and participation within an
employee relations system. Despite their similarities, Legge (1989) as cited in
Armstrong (2001:19) identified three features, which seem to distinguish HRM and PM:
1. PM is an activity aimed at non-managers while HRM is less obviously focused

but it certainly more concerned with managerial staff.
2. HRM is much more incorporated in line management activity but personnel
management seeks to influence line management.
3. HRM emphasizes management of culture by senior management but PM has
always been rather suspicious of organization development and linked unitarist,
social-psychologically oriented ideas.
David Guest 1987, sited in Torrington et al. (2002), enumerates the following differences
between PM and HRM;
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Table 2.1 Personnel versus HRM
Point of Difference Personnel Management HR Management

1 Time and planning Short term, reactive, ad Long term, proactive, strategic,
perspective hoc, marginal integrated
2 Psychological contract Compliance Commitment
3 Control system External controls Self-control
4 Employee relations Pluralistic, collective, low Unitary, individual, high trust
perspective trust
5 Preferred structures / Bureaucratic /mechanistic, Organic, devolved, flexible
systems centralized, formal defined roles
roles
6 Roles specialist / professional Largely integrated into the line
management
7 Evaluation criteria Cost minimization Maximum utilization (human
asset accounting )
2.2.2. HRM in the Public Sector

Effective human resource management is a critical function in today's public-sector.
HRM in the public sector has been characterized by the creation of structures that are
more flexible and processes, the elimination of highly centralized agencies and service-
wide consistency of rules and greater responsibility accorded to line managers and
supervisors in the management of employees through flatter management structures
and programmes of decentralization and devolution. At the job level, broader and
multi-skilled jobs were introduced. There was also a greater concentration on
performance and output measures (Brown, 2004: 307).
According to Olowu and Adamolekun (1999:87), the practical importance of the recent
HRM orientation for African public administration systems is that, it underlines the
transformation of personnel departments in public sector organizations from a
preoccupation with inactive roles of administering obsolete rules to actively developing
and pursuing policies for synergizing the personnel function with overall proactive
strategic management within the organization, focused on among other things
recruitment and selection, performance appraisal, training and development, and
reward system of which will be discussed in the next section.
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2.3. Recruitment and Selection
Ensuring that the right people are in the right place at the right time is a critical factor in
gaining and maintaining competitive advantage. Recruitment and selection have
always been crucial processes for organizations. They are integrated activities. (Bratton
and Gold 2007: 239-247) refers to recruitment as ‚the process of generating a pool of
capable people to apply to an organization for employment. Selection is the process by
which managers and other use specific instruments to choose from a pool of applicants
the person or persons most likely to succeed in the job(s), given management goals and
legal requirements‛. Recruitment and selection represent the entry point activities.
Hence, emphasis may be placed on admitting only those applicants who are likely to
behave, acquires kills and show attitudinal commitment in line with the requirements
of the organization’s strategy. Effective recruitment relies on the degree to which
overall management philosophy supports and strengthens an approach to HRM that
focuses on the deployment and development of new employees once they have gained
entry to an organization. In doing this, there needs to be an intelligent uses of
recruitment channel. An organization has two sources of labor supply-the internal and
the external labor market.
Internal recruitment involves words-of-mouth, recommendation or notice board

advertisements. In contrast, recruitment in the external labor market involves different
ways: advertising, job centers, employment agencies, walk-in and professional
associations (Sisson and Storey, 2000: 170). Merit-based recruitment and promotion is
widely acknowledged as the hallmark of well performing public administration
systems (Olowu and Adamolekun, 1999: 89-91). They further assert that the African
experience of applying merit in the public service has also underlined the significance
of balancing merit with other considerations aimed at ensuring some degree of
representativeness like race, ethnicity and gender to ensure equal employment
opportunity. Merit involves dealing with people based on their knowledge, skills and
other capabilities rather than irrelevant characteristics (Lee, 1993: 37).
2.4. Performance Appraisal
Performance management is, of course, about performance. According to Armstrong

and Baron (1998) as cited in (Armstrong, 2001: 467-470),‚Performance management is
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defined as a strategic and integrated approach to delivering sustained success to

organizations by improving the performance of the people who work in them and by
developing the capabilities of teams and individual contributors‛. It is concerned with
performance improvement, employee development, satisfying the needs and
expectations of all the organization’s stake holders-owners, management, employees,
customers, suppliers and the community. Finally, it is concerned with open
communication and involvement. It creates an environment in which a continuing
discussion between managers and the members of their teams takes place to define
expectations and share information on the organization’s mission, values and
objectives. Performance management is an on-going process, which holds the following
activities:
1. *Defining role in which the key result areas and competence requirements are
agreed.
2. The performance agreement or performance-planning phase, which defines
expectations.
3. Performance development stage.
4. Implementation phase which focuses on providing feedback on performance,
conducting informal progress reviews, updated objectives and where necessary,
dealing with performance problems and counseling.
5. Performance review phase which is the formal evaluation stage that can lead to
performance ratings (Armstrong, 2001: 475).
Providing and demonstrating better value and improving performance is at the centre
of any public sector organization today. In order to do this, organizations need to agree
on strategic priorities and then measure and manage those to achieve better results.
However, McCourt and Eldridge (2003:216) declare that in most African countries the
Public service still practiced the annual confidential report (ACR) to decide on internal
and seniority base promotion. For instance in Ethiopia, performance management as
part of Civil Service Reform Program (CSRP) has in its original design (Solomon, 2005:
36).
Feedback is an important element in appraisal. Metcalfe (quoted in McCourtand

Eldridge (2003: 212) found that the successful appraiser were those who allowed their
staff to participate. This is done by making an annual interview between manager and
employee the focus of the procedure. Frequent communication is desirable and
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important to good management and assists to maintain good performance throughout

the year. Thus, emphasis in developing appraisal should be on developing managers’
appraisal skills. The appraisal interview tries to assess, as honestly as possible, where
performance has succeeded, where not and why. It presumes that employees, with
guidance and encouragement, can identify and deal with their own weaknesses.
Consequently, appraisees should be able to communicate without fear of unhelpful
blaming, and without inhibition due to the appraiser’s higher rank.
Yet, organizations vary in degree of openness. Therefore, the communication style has
to be acceptable to both parties in a way that it reflects national and organizational
culture (McCourt and Eldridge 2003: 219).Preparing for the appraisal interview is
important. The appraiser and appraisee should establish an appropriate time and place
for the appraisal meeting. The meeting location should be free from interruptions like
office visitors, general conversations. Both parties should have ample time to prepare
for the appraisal meeting. Prior to the meeting, the supervisor should take time to
review the employee performance related documents, and prepare questions on areas
where he/she is weak. In the same line, self-assessment can be a significant part of the
appraisal process. Working with their supervisor, employees are encouraged to prepare
a self-assessment appraisal if required.
Employees may also wish to provide a report of accomplishments, factors that affect
their performance and any comments or questions in advance of the appraisal meeting.
This in turn will assist the appraiser in planning and conducting the actual performance
appraisal meeting and report. The interview technique should thus be constructive,
encouraging learning and improvement (McCourt and Eldridge (2003: 219-220).
According to Elaine (2004:1-4) performance management systems, which typically
include performance appraisal and employee development, are the ‚Achilles’ heel‛ of
HRM. When a performance management system is used for decision-making [which is
described in the hard model of HRM], the appraisal information is used as a basis for
pay increases, promotions, transfers, assignments, reductions in force or other
administrative HR actions. When a performance management system is used for
development [which is described in the soft model of HRM], the appraisal information
is used to guide the training, job experiences, mentoring and other developmental
activities that employees will engage in to develop their capabilities.
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2.5. Employees Training and Development
Training and development constitute an ongoing process in any organization. ‚Training

is the formal and systematic modification of behavior through learning which occurs as
a result of education, development and planned experience (Armstrong, 2001: 543).‛ In
contrast, staff development refers to the development of supporting, technical and
professional staff in organizations, such as local authorities, in which such staff form a
large proportion of those employed. Its aim is to enable such employees to perform
their current and future role effectively (Collin, 2001:305).
According to Olowu and Adamolekun (1999: 99-100), enormous resources have been
committed by national governments and by Africa’s development partners to the
training of public servants. Training was expected to meet a variety of objectives,
particularly skill development and improvement and socialization in to a public service
culture. Considerable training infrastructure was also developed in almost every
African country. However, training has had a rather limited quantitative and
qualitative impact in many African countries. This is because of the following reasons:
1. Not all employees are exposed to training;

2. Training is often treated as a discrete event, not part of an overall programme of
organizational improvement;
3. Selection of the trainees takes place on the basis of bureaucratic politics and
patronage rather than on the basis of the greatest need;
4. Competent trainers are rare, as training is itself a poorly developed profession;
5. Training curricula and models are usually based on borrowed models that are
rarely updated;
6. Training evaluation is usually limited to assessing happiness level rather than
the impact on knowledge, attitude behavior and job performance;
7. Most training institutions are poorly financed and managed and are usually
dependant on government. Consequently, in some civil service organizations
some employees were urged to leave their job and joined the private sector.
Nevertheless, some countries have taken a major review of their training programme,
funding, management of training and have produced training policies that lay down
the principle of mandatory training and retraining for all staff. Effective training can
minimize learning cost; improve individual, team and corporate performance speed
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and overall productivity, upgrade operational flexibility by extending the range of skills
possessed by employees, attract high quality employees by giving them learning and
development opportunity. It increases the job knowledge and enhances their skill thus
enabling them to obtain more job satisfaction to gain higher reward and promotion.
2.6. Rewards
In the context of managing people, the reward system underlines a core feature of the
employment relationship. According to Bratton and Gold (2007:360), ‚Reward refers to
all the financial, non- financial and psychological payments that an organization gives
for its employees in exchange for the work they perform.‛ Reward practices
engendering debate among academics and organizational leaders on the role that it
plays in achieving substantive employee behaviors like task performance, flexibility,
quality and commitment. It is also argued that the design and management of reward
systems holds one of the most difficult HRM tasks for general managers.
Regardless of any other rewards it gives to its employees, an organization must make
three main decisions about monetary reward: how much to pay, for whom to pay
(individual or group) and how much emphasis should be placed on monetary reward
as part of the total employment relationship.
In the past decade in Africa the pay and benefits view have been dominated by three
issues. ‚First, the attempt to set up the principle of equal pay for equal work within the
entire public service. It is this principle that helps to decide the salary scales that are
paid to various grades of personnel in the service. The second issue is how to guarantee
that salaries are adjusted periodically in response to inflationary trends and in
combination with the pay for comparative work in private sectors of the economy. The
third issue is how to confirm that benefits really serve as motivators, as if the salaries do
(ibid).
In many African countries the remunerations are invisible, even though they have come
to denote a high percentage of personnel costs, and most often they are not effectively
used to give necessary services (Olowu and Adamolekun, 1999:102).In the same line,
they also argued that the search for a decent wages has led to efforts to modify salaries
up-ward almost in many countries to correct inflation and wage erosion. Much
endeavor has also gone into trying to decompress the wage structure, but only a few
countries have succeeded in this area. For instance, in 1995 Ethiopia raised salaries for
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public officials for the first time since 1975. This gave special salary increase for
professional group such as doctors and teachers.
Nevertheless, like other African countries it has not succeeded in paying salaries in the
private sectors, international and non-governmental organizations. Likewise, the most
serious challenge that confronts many African countries in the area of reward is not
only how to develop systems of performance-related pay and incentive, but also lacking
the resource to pay for scarce skills these countries have focused their efforts on
monetizing benefits, since benefits often constitute a large percentage of total
compensation.
2.7. Decentralization
It is a complex and multidimensional concept. According to Rondinelli (1981:137),
decentralization is defined as ‚the transfer of responsibility for planning, management,
and resource raising and allocation from the central government to:
a. Field units of central government ministries or agencies,
b. Subordinate units or levels of government,
c. Semi-autonomous public authorities or corporations,
d. area-wide regional or functional authorities, or
e. Organizations of the private and voluntary sector‛
On the other hand, the term decentralization refers to a political arrangement involving
devolution of specific powers, functions, and resources by the central governments to
sub-national level government units like regional or provincial and local governments,
which are independent of the central government and have legal status. Normally their
existence is enshrined in constitutions in federal and quasi-federal or hybrid (both
federal and unitary) systems. For example, Ethiopia (Adamolekun, 1999:49). Several
African countries have undertaken major decentralization programmes in the 1990’s
that focus on popular empowerment. However, decentralization reforms confront two
types of problems in many African countries. The first is the absence of capacity in
central governments and in the localities to undertake the responsibilities that would
make decentralization function as expected. The second problem is to overcome the
negative attitude on the part of central officials who see the involvement of regional or
local communities as a zero sum(win-lose) rather than a potential positive-sum (win-in)
power game between central and local officials (Olowu, 1999:130). Generally,
decentralization has been classified as deconcentration, devolution, delegation and
privatization.
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2.8. Devolution
Devolution refers to ‚the transfer of legislative, political, administrative and financial

authority to plan, make decisions and manage public functions and services from
central government to local governments. The primary aim of devolution is
empowerment (Olowu, 2001:3). On the other hand, according to Paulos (2007:53)
devolution is the most extensive type of decentralization. In addition to this devolution
is intended to reduce the gap between government and local population and also to
increase control and direction over utilization of resources and ensure effective and
efficient service delivery (Ademolekun1999:50-52). In terms of effectiveness and
efficiency, Ademolekun (1999:57) stated, ‚the development performance of local
government is more often than not affected by the financial and human resource
available to them.’’
Devolution improves the HRM functions by placing a greater degree of authority and
answerability in the hands of managers at the department and regional level. It is a tool,
which will ensure that the civil services have the capacity to do the HRM tasks in an
effective and efficient way by giving them the power to recruit and select, to promote,
to train and to reward accordingly in appropriate manner. Analyzing devolution will
help us to understand the administrative, political, fiscal and geographical aspects of
decentralization.
Hence, this study views decentralization as devolution or the transfer of decision-

making power and authority from the centre to functional public authorities or bureaus,
which have officially demarcated geographic and functional realm.
2.9. Rationale of Decentralizing HRM Functions
Civil services at all levels of government need a capable, motivated and efficient staff in
order to deliver quality services to its customers. When HRM functions and structures
are decentralized, existing bureaucratic patterns must be reorganized, as roles and
accountability are transferred. Decentralization thus strengthens the need for capable
staff and increases the importance of capacity-building programmes (MCB, 2003:12).
Proponents of decentralizing responsibilities to managers assert that decentralization
increases the efficiency and effectiveness of HRM and public administration in general.
Decisions can be taken faster, recruitment be tailored to the specific needs of the
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organization, less complex procedures are needed. In addition, effectiveness is

increased, because decentralization increases the manager's discretion, thus enabling
him to recruit, evaluate, offer incentives, promote, suggest training needs and
communicate directly (Demmke, 2006:7-8).
In contrast, highly decentralized systems may cause a decline in the professionalism of

the core civil service and a certain loss of a civil service ethos as well as the
disintegration of policies from a strategic point of view. In addition to this, the problem
with a decentralized approach is the increased possibility of conflicts among the
different actors and institutions, ministries, agencies or HRM authorities if central
coordination mechanisms are ineffective or non-existent. The success of decentralization
also seems to depend on the skills of managers and HR professionals to carry out their
task and responsibilities. Thus, greater autonomy and decentralization of
responsibilities require considerable investment in management qualifications at all
levels. It is important to combine decentralization efforts with additional management
training to provide the professional skills that are crucial for managing in a
decentralized environment. Fairness and equity are another important issue to be
considered (Demmke, 2006:7-8).
2.10. Public Personnel or the Civil Service Definition
The term public personnel is often used interchangeably with such terminologies as the
civil service, government employees, public sector employees and the like. It is,
therefore, very useful to define what a career civil service is to understand public
personnel administration. A Hand Book and Public Administration, UN (1961) defines
a career civil service as follows:
Career civil services are corps of public officials and employees with tenure of office longer
than that of the ministers and who are not charged with ultimate political responsibility. It is
also known as the ‘civil service’ or the ‘public service’ or ‘classified service’ and sometimes
the ‘public administration’< In modern systems of public administration, the members of
the career service are appointed and promoted on the basis of objective tests of competence
and are assured of protection against arbitrary dismissal (p.18).
A career service (referred to variously as a civil or public service) is the non-political,

permanent corps of officials which forms the back one of a national administration. To be
competent and effective such a service should offer the prospect of a dignified and
respected career on a full-time, life-time basis, which will attract and retain persons of
superior capacities in the service of their country (p35).
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Civil servants work for the ‘civil’ as opposed to the military, ministerial or judicial arms
of the state. Members of the armed forces, governmental ministers and judges are not
civil servants (Pyper: 1995, p1).
The civil service or public personnel are also some times interchangeably used with the
term bureaucracy, although different meanings are attached to it depending on the
context in which it is used. In its generic sense, a bureaucracy is ‘government by un-
elected, career officials’. The term was popularized by Weber, who associated it with
the exercise of ‘legal-rational’- as different from ‘traditional’ or ‘charismatic’ authority
(Balogun and Mutahaba, p192).
According to Cox et al (1994, p53), public personnel is more than a series of steps or
organizational constructs. It is more than recruitment, hiring, retention, job analysis,
evaluation and promotion. It is a cluster of activities that are changing and evolving,
with some activities changing more rapidly than others.
Thus, our definition of the public personnel administration follows. Public personnel
administration refers to the administration or management of the human resources
engaged in the civil service through systematic, pragmatic and flexible approach
towards the planning, attracting, development, maintaining, coordinating, motivating
them in such a way that enhances employees quality of life and creates sustainable
commitment to serve the public and promote social, economic and social development.
2.11. The Public Sector and the Civil Service
The public sector is a broad concept that includes all sectors of the government as
opposed to the private sector. It embraces three main categories, viz, the government
with all its subsidiaries (government departments / ministries, commissions, agencies,
authorities), the public enterprises and the social security. The public sector also
includes the judiciary, the security and the national defense. In general, it refers to the
three branches of government, viz, the legislative executive and the judiciary.
TizianoTreu (1967:p15).
In other words, it embraces the wide range of activities where government directly
operates by employing people of different capacity at different levels including policy
making, regulatory bodies, policy implementation, maintenance of law and order and
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the provision of public goods and sometimes private goods (as in the case of developing
countries).
The size of the public sector in a given economy depends up on many factors including
the political ideology, level of economic development, and the global environment. The
definition of the public service, therefore, could be different from country to country
depending upon the specific condition of each country. Tiziano Treu (1967:p4) said, the
concept of public service varies in different countries in terms of the employing
authorities and the services covered on the one hand, and the personnel covered on the
other. In fact, the concept and the scope and determined by the overall constitutional,
political and social system on which the organization of each state is based.
2.12. Preceding Research Works on Decentralization in Ethiopia
The first wave of decentralization in Ethiopia was limited to regional/state levels. It is in

the second wave of decentralization that the empowerment of civil service sector
bureaus came into being in 2002 G.C. Checking several library catalogs in Ethiopia and
as well as browsing several web pages has not elicited much scientific literature except
the World Bank working papers on this topic. In proof of this Asefa and Gebre-
Egziabher (2007:11), in their review of decentralization related articles, said: ‚Some
topics in the literature review have no [limited] literature and therefore it was not
possible to provide adequate information. This could be an indication of a gap in
research on decentralization in Ethiopia‛.
In Ethiopia, decentralization of power to implementing agencies is not accompanied by

the supply of enough number of trained and skilled personnel to implement the
delegated authority. Thus, the critical challenge for Ethiopia’s decentralization in
general is lack of skilled, well-trained and adequate civil service. Different researches
indicated that the shortage of trained and adequate personnel is severe at sectors level
administrative hierarchies. Furthermore, the problem is exacerbated by the prevalence
of appointments based on political loyalty that weakens the civil service principles of
merit and competence (Kassahun and Aklilu, 2000: 37-38)
The editors have also recommended further study in their conclusion, saying (ibid: 54):
‚<the value added of decentralization in view of increased autonomy, adequacy of
resource flows, building capacity of executers and employment creation, [as well as]
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augmented capacity [has not been] sufficiently studied [nor] articulated in a rigorous
manner‛.
Another very practical work is Yigremew’s (2001) evaluation of performance of [the]

decentralization system in the Ethiopian human resources management practice. In this
extensive evaluation, he also argued that most countries who are implemented
decentralization encountered all kinds of skill shortage and the lack of coordinating and
controlling capacity at sub-national units (Yigremew, 2001: 105). Before
decentralization, local governments must be strengthened to help discharge their new
responsibilities.
The lack of trained personnel and leadership, particularly in rural areas, are critical
constraints for successful decentralization. Decentralization policies require technical
skills and organizational capability, which are actually scarce at lower- level units.
Hence, support from the central government is an important precondition for successful
decentralization policy (ibid: ii).
However, researchers like Kefyalew(1990) argued that all problems are not directly
related to training and cannot be cured by training. Improper job design and ‘over
loaded jobs’ are, for example, cited as reasons that lowers performance (Kefyallew,
1990:4-5).
While the above works by individual researchers highlight where the decentralization
program stands since its inception, some assessments have also been made by external
multilateral organizations.
The World Bank assessment report of thirty countries stated the following: ‚The
surprising outcomes include, for example, the overall assessment of Ethiopia and
Namibia, which appear in the same category of countries having moderate
decentralization. Since its revolution in 2002 G.C., Ethiopia elaborated a constitutional
framework that was most progressive in giving authority to the regions and executing
agencies. However, it has also commented that the two constraining factors of
Ethiopian’s decentralization are shortage of trained and experienced manpower and
scarce financial resources. In addition, lack of coordination, monitoring and follow-up
systems are cited as the major handicaps to effective decentralization in Ethiopia
(Ndegwa 2002: 18).
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2.13. Customizing and Linking the Concepts to the Topic of the Study
In the above literature, New Public Management (NPM) theory, Human Resources
Management, practices of decentralization in general, relevant theories and related issues have
been discussed. Concept of NPM and its critics has been summarized and presented.
Fundamentally, NPM can be described by the new trends in the public administration to
shift some important insights and values from the private sector strategy to the public
sector to enhance service delivery. Furthermore, it is being undertaken in many
countries of North and South. However, in Ethiopia NPM as a reform measure is not
foolproof and generates some complexities in implementation. Some also have pointed
out that the avowed objectives of the model are not being attained yet. To this effect,
much work is needed in that regard.
In terms of decentralization, the meaning and the different forms of decentralization are
explained. In addition the arguments in favor of and against decentralized forms of
governance are considered. Further, a number of factors which should be taken into
account in determining the adequacy of the empowerment of public sectors are
established. Accordingly, civil service bureaus should be democratically constituted
and it should have an exclusive area of governance.
Also it should be autonomous in a sense that it should not be controlled by the central
government. The role of the central government should be limited to supervising it.
Even though some writers contend that the decentralization program in Ethiopia did
not emerge mainly to disperse the power concentrated in the center to the states, others
maintain that it was the security and revenue collection issue that pushed the
government to decentralize. However, the explicit attempt of decentralization in
Ethiopia focuses on development, on empowering local bodies, creating wealth and
bringing overall development.
To this effect, according to decentralization program documents, the program has

focused on empowering local tiers to practice self-rule and enhance their capacity to
change their localities.
However, decentralization reforms in Ethiopia suffer from the absence of capacity in

those government offices to undertake the responsibilities that would make
decentralization function as expected. The success of decentralization also seems to
depend on the skills of managers and HR professionals to carry out their task and
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responsibilities. Thus, greater autonomy and decentralization of responsibilities require

considerable investment in management qualifications at all levels. It is important to
combine decentralization efforts with additional management training to provide the
professional skills that are crucial for managing in a decentralized environment where
fairness and equity are also other important issues to be considered. As such, it is thus
the purpose of this study to see how it progresses and what has been achieved as a
result of this program, focusing on variables mentioned above.
2.14. Background to the Executions of HRM Functions in Ethiopia
2.14.1. HRM Practice in Ethiopia pre and post decentralization
For the last four decades, Ethiopia has had formal rules and procedures in accordance
with the principle of developing a meritocratic/professional civil service. However,
serious failures in execution marked the two previous regimes (Paulos, 2007:361).The
Civil Service is the operational arm of the government charged with the implementation
and administration of public policy. The origins of the "modern" civil service in Ethiopia
dates back to 1907when Menelik II initiated the formation of a few ministries with the
aim of lending an orderly and efficient arrangement to the workings of government
(Ibid).
Nevertheless, such inspiration and great enthusiasm for instituting better and modern
civil service was not fully materialized as desired by the ruler of the day. Mainly,
Menelik’s subsequent illness until his death in 1913 stunted further modernization.
Though, the institution underwent a series of changes commensurate with a host of
new needs and imperatives, the period was marked by weak leadership until Haile
Selassie succeeded Menelik’s daughter, Zewditu, in 1930 when he embarked upon an
unprecedented process of centralization (Getachew and Richard, 2007: 368).
In the following year, Emperor Haile Selassie undertook a series of institutionalization

and restructuring measures. His aim was focused mostly towards bringing about an
effective and efficient civil service governed by homogeneous rules and procedures.
The civil service made structural and functional change during this reign especially
after issuance of the Public Services Order No.23/1961, which was later amended by
Legal Notice No.20/1962 and created the Central Personnel Agency (CPA) currently
Ministry of Civil Service. It is an organ of the Federal Government Administration,
which is responsible in all matters related to civil servants’ recruitment, selection,
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promotion, transfer, salary increment, position classification, salary scale and exclusive
right to issue regulations after approval by council of ministers (Alemayehu, 2001:2-4).
Notwithstanding there were problems. These were lack of strong participation from the
concerned organs especially in the preparation of position classification, salary scale
and job descriptions; and lack of trained personnel to prepare the same and inclusive
policy. Furthermore, the absence of strict devotion to the civil service rules and
regulations and political intervention in personnel matters were seen as chronic
problems of the time (Paulos, 2001:7).
The Dergue (1974-1991) replaced the imperial era. It was a highly centralized unitary
government following a soviet-inspired centralized economic planning and command
economic system. Throughout this period there were no fundamental reform measures
propagated to change or modify the functioning and management of the civil service.
Except for the introduction of a few reform measures, the civil service operated under
the various orders and decrees issued during the reign of Haile Sellassie (Paulos,
2001:7).
As Atkilt (1996: 46-47), puts: Although continued to be directed by identical

administrative rules and regulations, the civil service excessively grew in volume and
quantity and it was centralized and at the same time not structured. The civil service
was neglected; political attachment and patronage rather than merit were prevalent;
discharge of civil servants was based on political ground. There was also low morale of
civil servants due to incommensurable pay and working conditions. Moreover, during
the Dergue regime the rate of corruption had extremely amplified and reached its peak.
Outright plunder, giant commissions, bribes, and mis-appropriation characterized the
period.
Consequently, the above stated problems could give rise to the fall of the administrative
system of the Dergue regime. The Ethiopian government has since steadily improved
the economic performance of the country following market reforms. However, the
1990’s also witnessed the intensification of the involvement of international institutions.
The adoption of Structural Adjustment Programmes (SAPS) focused on two major
areas: macroeconomic policy and institutional reforms (Getachew and Richard 2007:
368).
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As it was discussed earlier, Ethiopia was among the few independent African countries,
which introduced what was called ‚Administrative Reform‛ in the early 1960s. No
progress was made until the fall of the military regime in1991. The foundation of state
governance has changed from a highly centralized apparatus to a decentralized federal
structure. The regions are largely responsible for their respective social and economic
development (Alemayehu, 2001:2). According to Getachew and Richard (2007: 369),
following the consolidation of power in May 1991, the Ethiopian People’s Republic
Democratic Front (EPRDF) also acknowledged the deep institutional constraints on
basic functions like policymaking, service delivery and regulation. Core public
management at federal and regional levels were hampered by outdated civil service
legislation and working system; the absence of a medium-term planning and budgeting
framework; ineffective financial and personnel management controls; inadequate civil
service wages and inappropriate grading systems; poor capacity for strategic and
cabinet-level decision making; and insufficient focus on modern managerial approaches
to service delivery.
In identifying of these limitations, the government embarked on a comprehensive Civil

Service Reform Program (CSRP) in 1996. Devolution of powers from the federal
government to the regional governments, reorganization and restructuring ministries
and agencies, manpower rationalization and salary enhancement efforts were
intensified by launching a national capacity-building programme (Alemayehu, 2001:8).
In the same year, the government established a task force aiming to assess problems in
the civil service system. The task force found that the orientation, attitude and work
practices of the bureaucratic machinery were ill suited to the needs of the new policy
environment of the country. Some of the problems included: attitudinal problems, lack
of clear national service delivery policy; insufficient recognition of citizens’ rights; lack
of accountability; excessively hierarchical organizations; giving priority to the
convenience of providers, not customers; more concern on inputs and routine activities,
less on achieving tangible outputs; lack of consultation with clients, lack of complaint
handling mechanism and lack of capacity (Government of Ethiopia, 2001: 2).
Accordingly, the government initiated its second phase (1996-2003) programme in the
form of comprehensive Civil Service Reform Programme (CSRP) that included five
major sub-programs: expenditure control and management reform, human resource
management reform, service delivery reform, top management system reform and
ethics reform sub-programs. The most recent reform phase began in September 2001,
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with the launch of the Public Sector Capacity Building Program /PSCAP/ (Getachew
and Richard 2007:369). Following the launch of this programme in May 2003, the
government initiated the third phase of its reform agenda in the form of five-year Public
Service Delivery Capacity Building programme aiming to strengthen working systems,
improve organizational effectiveness and rapidly developed human resources in public,
private, civil society and higher education sectors(Tilaye,2007:18).
In the year 2009, a national evaluation has been conducted and a conclusion has reached
that most of the programs were matured and a conducive environment has been
created that could be conducted by their respective sector ministries. Therefore, the
former ministry of Capacity Building has accomplished its mission and hence no longer
in existence. As the name implies, the Civil Service Reform program is under taking in
the Ministry of Civil Service presently.
2.15. Human Resource Management in Addis Ababa City Government
The overall objective of decentralization is providing effective and efficient services to

the public. Hence, the city government based on the constitution of the region issued
the Civil Servants Proclamation No. 6/2008. In line with this, for the implementation of
this proclamation the city government’s CSA apart from its support and supervision
role issued an HRM manual. This manual has two volumes. The first one is dealing
with, the execution of recruitment, selection, salary increment, reward, promotion and
transfer. Similarly, the second one concerns with the handling of disciplinary and
inspection measure. These manual enables bureaus to perform the HRM functions
using their authority and to create sense of accountability. Moreover, to ensure merit
based personnel administration and equal employment opportunity in the city
administration.
The proclamation also provides for the reorganization and redefinition of the powers
and duties of the executive organs of the city administration. In each bureaus, there
exist HR function department, which is responsible for handling the personnel matters
of the corresponding sectors. In this regard, according to the AACSA, 2009 Article 5 it’s
role includes supervising implementation of the proclamation, regulation and directives
issued. It has two main departments namely, Human Resources Management Core
Process and Human Resources Administration Inspection, Support & Information Core
Process. Besides, it has also Administrative Tribunal and Documentation Division. Each
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of the above departments have sections under their supervision as shown in the
diagram below.
In order to exercise its power and duties, the CSA at any time either sends inspectors to
government offices to examine files or orders sectors to submit files and records.
Besides, in performing this activity if an inspector discovers that the law is infringed or
a discriminatory act is committed, the agency has the power to order the authorization
of the wrong doing. Finally, cause the taking of administrative measures against the
official or the civil servant responsible for the act.
Figure 2.1: Organization Structure of AACSA
Capacity Building Bureau
Civil Service Agency Administrative Tribunal &

Documentation Division.
Human Resources Human Resources Administration

Management Core Work Inspection, Support & Information
Process Core Work Process
Org &Job Classification Manpower HR HR Admin Manpower Admin,

Case Team Planning & Dev’t Documentation& IS &Placement Case Inspection &
Case Team Admin Case Team Team Support Case Team
Source: AACSA, 2013
The bureaus which are established as executive organs of the city government by the
proclamation include the following:
1) The Mayor’s Office

2) Addis Ababa City Administration Communication Affairs Bureau
3) Addis Ababa City Administration Justice Bureau
4) Addis Ababa City Fire & Emergency Prevention &Rescue Agency
5) City Council of Addis Ababa
6) Addis Ababa City Administration Capacity Building Bureau
7) Addis Ababa Mass Media Agency
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8) Addis Ababa City Administration Small Micro Enterprises Development Bureau

9) Addis Ababa City Administration Environment Protection Authority
10) Addis Ababa City Administration Civil Service Agency
11) Addis Ababa City Administration Educational Bureau
12) Addis Ababa City Administration Park Beautification and Cemetery
13) Addis Ababa City Administration Trade and Industry Development Bureau
14) Addis Ababa City Administration Finance & Economic Development Bureau
15) Addis Ababa City Administration Labor and Social Affairs Bureau
16) Addis Ababa City Administration Audit Bureau
17) Addis Ababa City Administration Health Bureau
18) Addis Ababa City Administration Culture and Tourism Bureau
19) Addis Ababa City Administration Design and Construction Bureau
20) Addis Ababa City Administration Women, Children and Youth Affairs Bureau
21) Addis Ababa City Administration HIV/AIDS Prevention and Control Bureau
22) Addis Ababa City Road and Transport Bureau
23) Addis Ababa City Administration Productivity Improvement Center
24) Addis Ababa City Administration Sport Commission
25) Addis Ababa City Administration Housing Development Project Office
Based on the above explanations the following section describes the implementation of
recruitment and selection, performance appraisal training and development and reward
in those executive organs.
2.15.1. Recruitment and Selection
According to the Addis Ababa City Administration Civil Service Proclamation No.
6/2003, Article 12 each sector bureau has the right to advertise every vacant position.
Moreover, every government office may solicit graduates of higher educational
institutions for recruitment in cooperation with institutions.
In doing this, each office shall follow the City Administration’s HRM manual. The
vacancy announcement should be widely advertised to attract the best candidates from
the labour market. Exceptionally, for those civil servants having social and health
problem, for employees who upgrade themselves based on their office manpower
planning, positions like top-level manager executive secretary, cabinet members’ driver
and cashier, it is possible to assign without advertisement.
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However, those employees who were assigned in this manner must fulfill the minimum
requirement of the vacant post (AACSA, 2009:8). Furthermore, the recruitment and
selection committee of each office conducts selection and appointments based on merit
(AACSA, 2009:12-15).
2.15.2. Performance Appraisal
The bureaus under the city administration follow a Balanced Score Card (BSC) system.
Preparation of the performance appraisal plan must be participatory, transparent, result
oriented, measured based on work quality, quantity, cost and time dimensions. Besides,
it should be extracted from the general institutional strategic plan. Generally, the BSC
system in the city administration has five phases: 1) Planning which includes setting
work plan and/or performance objective against which evaluation will be conducted. 2)
Follow up performance and give feedback. 3) Measuring performance based on results
of self-appraisal and performance report. 4) Conduct training for poor performer. 5)
Giving reward for best performer (AACSA, 2009:25).
2.15.3. Training and Development
Under the City government, every civil service bureau shall have the duty to identify
the training needs of the office, the civil servants, to prepare plans and budget for
training and thereby ensure that the civil servants receive the necessary training and
furnish information there on to the Agency.
The Agency in turn shall train HRM staff based on the training needs of the sector
bureau, coordinate and support the training program of the different government
offices. In addition to this to make training of civil servants effective, the Agency shall
issue a policy with regard to the conditions of their training locally and abroad and
supervise the execution of same (AACSA, 2009:34).
2.15.4. Rewards
Reward is one instrument of motivating employees to execute to the maximum degree

of their capacity. According to the city’s Capacity Building Manual2008-section 13
subsections 13.6 if an employee performance results will be above satisfactory level
he/she will be rewarded based on performance-related pay system. In addition to this as
stated in the civil servants HRM manual section8.3 subsection 8.3.1 B-C if, an employee
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performance result will be higher or highest for the first time the organization prepares
thank you letter and put it on the notice board together with his picture, if he/she
repeats this result again, he/she will get a reward of 50% and 75% of his/her salary
respectively. However, within a year if an employee performance result is below
satisfactory level he/she is not entitled for any reward (AACSA, 2009:36-37).
2.16. Size of the Addis Ababa City Government Civil Service
The size of the Addis Ababa City Government civil service is the fourth highest next to
Oromia, Amhara and SNNPR regions. According to the Ministry of Civil Service
Commission annual personnel statistics report for 2013, the civil service of Addis Ababa
City Government is 62,952 which comprises of 6.24% of the total civil service at national
level. The size of the civil service in the city government is also increasing over the past
twelve years especially during the last three years it had shown a steady increment as
indicated in the figure below. The male/female composition for the year 2013 shows
30,872: 32080 that is a male/female ratio of 49 to 51.
Fig 2.2 The Size of A.A. Civil Service for the last 12 years (2000 - 2013)
70000
62952
60000 56341
51826
50000
39244 39554 Male
40000 36177
33933 Female
28770 28944 29456 30557 Total
28378
30000
20000
10000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Ministry of Civil Service, 2013
The data above also shows that there is an encouraging representation of women in the
composition of male to female ratio which shows an increasing role of women in the
nation building activity.
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Chapter 3
Research Design and Methodology
The primary focus of this chapter is to provide an overview of the research
methodology used to investigate the research problem. It covers the research design,
source of data, population, sampling method, data collection procedure and methods of
data analysis in relation to the practice of Public Human Resource Management in
selected Civil Service Bureaus of the Addis Ababa City Government.
3.1. Research Design
In order to address the research questions and also achieve the research objective, the
researcher has determined the suitable research design. A research design is
arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in consideration. In fact, a
research design is the conceptual structure within which research is conducted; it
constitutes the blue print for the collection, measurement and analysis of data (Kothari
2004:7).
This research has a descriptive nature describing the existing phenomenon as it exists.
According to Kothari (2004:8), descriptive research includes surveys and fact-finding
enquiries of different kinds. The major purpose of descriptive research is description of
the state of affairs as it exists at present. In a very real sense, description is fundamental
to all research. And hence, to better see the how effective the implementation of human
resource management within the context of decentralization in selected civil service
bureaus of the city government, the role of each identified effectiveness variables shall
be described in detail.
3.2. Research Methodology
There are generally three types of research methodologies identified by Creswell (2003).
These are highlighted below along with their advantages and disadvantages.
3.2.1. Quantitative approach
Quantitative data is about numbers in general terms. They are all such data that are
usually quantified to help answer research questions and meet pre specified objectives
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(Lewis et al, 2007). These claim post positivism knowledge with experimental strategies
of enquiry. Quantitative analysis uses methods such as, cost and effect thinking,
measurement and observation as well as test of theories. Proponents of this approach
claim that it is a great example of deductive logic of natural science. This is because it
allows for comparison which is done through objectively determined validity and
reliability. However, since by this approach variables may only be measured by specific
point in time, one may not achieve an in-depth analysis of for example psychological
factors.
3.2.2. Qualitative Approach
Qualitative data is about words so to speak in general terms. These include all non-
numerical data that are not quantified or quantifiable and can be a product of all
research strategies. This type of analysis claims constructivism of set of knowledge and
mainly uses ethnographic and narrative strategies of enquiry. Qualitative analysis uses
methods including, field observation, open ended interview and theory deductions
among others. The main advantage of such approaches is that there is a greater degree
of wholeness and richness of data collected since it focuses on natural occurrences
within natural settings. This makes it a powerful tool to study the process (Creswell
(2003).
3.2.3. Mixed Methods
Mixed approach to a research incorporates elements of both quantitative and qualitative

approaches. It claims the knowledge of pragmatic assumptions for its rigor and validity.
In essence, it uses both qualitative and quantitative strategies and methods of enquiry.
This approach draws advantages of the two approaches discussed above. It as well
draws a complexity of disadvantage of these approaches. This makes mixed method of
research more time consuming and thus inevitably inappropriate for a master’s research
given the limited time and resources.
From the above argument, this research paper shall lend itself to the combination of
qualitative and quantitative data collection tools along with the tools that go with them.
While the first is chosen for it’s convenient to help identify the nature and reasons
(causes) of problems and their consequences.
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It is especially suitable for the study of phenomenon where least is known and a few
secondary data are available. As such qualitative method has been chosen as it uses
‚unreconstructed logic to get at what is really real -- the quality, meaning, context or
images of reality in what public sectors under the city government actually do, not what
they say they do as on questionnaires‛ (Berg, 1989: 239). Whereas, the quantitative
method helps for quantification of certain variables in the study population.
3.3. Data Collection
Multiple data gathering techniques were used to collect data from the study area. Thus,
Questionnaires, unstructured interviews and document analysis were employed to
gather data. The study uses both primary and secondary data in order to get a view on
the implementation of HRM in the selected civil service bureaus under the city
government.
3.3.1. Questionnaires
For primary data collection, questionnaire was taken as a preferable data-gathering tool
for this research because of two reasons. It allows the researcher to collect information
on facts and attitudes from a wide range of sources. Moreover, it is one of the most
important tools to guide the respondent since it gives clear choices to check. Two types
of questionnaires (coded 1 & 2) were designed in English language and have been
distributed to 166 samples purposively drawn from HRM officers as well as those
concerned staffs from the selected bureaus under the city government of Addis Ababa
The first questionnaire was distributed to permanent civil servants from the AACSA
and the latter for those HR officers from the selected sector bureaus.
Of the 166 questionnaires distributed, responses have been obtained from 120
employees i.e. 73%. However, the returned questionnaires were largely useable.
3.3.2. Interview
Though questionnaires are considered as the major data gathering tool, unstructured
interview with heads of Manpower Planning & Development Department and HR
Documentation & Information System Administration Department has also be used as a
means of getting additional information.
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These are officials at the AACSA who are much experienced in the areas of public
human resources management practice in selected civil service bureaus of the city
government in a decentralized context along with the changes and the prospects in that
regard.
3.3.3. Document Analysis
The public sector organizational profiles, statistical data from the Addis Ababa Civil
Service Agency and Annual Statistical bulletin of the Ministry of Civil Service and
Addis Ababa Civil Service Agency were utilized. Critical examination of previous
literature is also used for describing the evolution of public HRM practice in Ethiopia,
the problems and improvements in the past.
3.4. Sampling Design and Size
The questionnaires were administered to a sample purposively drawn from HRM

officers as well as concerned staffs from the selected bureaus under the city government
of Addis Ababa. The sampled officers were all responsible for conducting their office
recruitment &selection, training, performance appraisal and reward systems. The
Bureaus surveyed include:
 Addis Ababa Civil Service Agency (AACSA),

 Finance and Economic Development Bureau (BOFED),
 Trade and Industry Development Bureau (BOTID),
 Addis Ababa City Health Bureau,
 Road and Transport Bureau,
 Culture & Tourism Bureau,
 Small and Micro Enterprises Development Bureau,
 Housing Development Project Office,
 Fire & Emergency Prevention & Rescue Agency,
 Education Bureau, and
 Audit Bureau.
The rational of selecting the mentioned bureaus is that AACSA is the executive organ of
the city government established to control the execution of HRM rules and regulations
and provide HRM services to attract and retain a diverse, productive and creative
workforce for the achievement of an excellent service for the city government,
communities and other stakeholders.
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Concerning the other selected bureaus, even if there are many other offices governed by
the rules of AACSA, in terms of manpower and financial aspects they have a wider
scope than the others do. In addition to these, they are core economic and social sectors
of not only the city government but also the country.
From each of these offices minimally 15 respondents were selected which total a sample
of 166 staffs. The table below shows the number and arrangement of respondents to the
questionnaire from selection of the above-mentioned sectors.
Table 3.1.Expected Responses from ten selected Civil Service Bureaus
Sectors HRM Departments/Sections Total

Officers Training Finance G/Service Logistics
BOFED 4 3 3 3 2 15
BOTID 3 3 3 3 3 15
Education Bureau 3 3 3 3 3 15
Health Bureau 3 2 3 3 4 15
Road & Transport Bureau 3 3 3 4 3 16
Culture & Tourism Bureau 2 2 3 3 3 14
Small & Micro Entr. Dev’t Bureau 2 2 3 3 3 13
Housing & Dev’t Project Office 3 3 3 3 3 15
Fire & Emergency Prevention 4 4 2 3 2 18
Addis Ababa City Audit Bureau 3 3 3 3 3 15
HR Manpower HR Manpower
Documentation Planning Administration Admin,
& Info Admin & Dev’t &Placement Inspection
AACSA 4 Case Team Case Team Case Team & Support
Case Team
3 3 2 3 15
Total 34 31 33 33 34 166
Source: Data collected by Author
Furthermore, secondary data sources were used to analyze the situation after
decentralization and to put the study in the context of the Addis Ababa City
Government. Sources include mainly books, journal, government regulations and
internet. Among the secondary sources are previous studies, the public sector
organizational profiles, statistical data from the Addis Ababa Civil Service Agency and
Annual Statistical bulletin of the Ministry of Civil Service and Addis Ababa Civil
Service Agency were also utilized. Critical examination of previous literature is the
major method used for describing the evolution of public HRM practice in Ethiopia, the
problems and improvements in the past.
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3.5. Data Presentation and Analysis
The collected data were clearly presented using tables and charts which are in turn
expressed in the form of percentage. Then descriptive analysis technique was applied
to interpret and analyze the organized data. This is the transformation of the processed
data to look for patterns and relationship between and/or among data groups by using
descriptive or statistical analysis.
3.5.1. Data Analysis
The attempt was to explain the causal links between decentralization and HRM in
public sectors and see the challenges and arrive at analytic generalization of the
phenomenon. The quantitative data obtained from primary, secondary sources were
organized through the method of descriptive tabulation and analyzed by way of
corresponding them with/against the qualitative data obtained from primary sources.
It is that nature of the qualitative research that makes it an extremely strenuous task
and requires researchers who chose this method to continuously think and get engaged
(Yin 2009:38,141). Hence, checking completeness and coherence, converting figures to
narration, testing relevance, transcription/writing down from questionnaire and
interview records, obtaining consent where possible, classifying, reiterating, connecting
and generating the metadata and analyzing/synthesizing was a comprehensive process
throughout this study. Organization included manual tabulation into logical categories,
Bar charts to show the summary of the responses obtained and descriptive methods in
which simultaneous in-depth analysis of recurrent themes and issues and triangulation
of the data through different techniques were carried out in such a way that they
enabled me to conduct a cross check between different sources.
As the purpose is to identify ‚what is actually there/ what has reached there‛ compared to
‚what had been told‛; and more importantly if there are deviations ‘‘why and how the
discrepancies happened’’ or extent of conformity, it involved description of facts and
phenomenon and explanation of the processes and the outcomes. It also involved both
the assessment of factual trueness and analytical trueness of the phenomenon against
the reported/anticipated outcomes and the general principle.
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3.6. Validity and Reliability
Validity is usually defined as, ‚the best available approximation to the truth or falsity of a
given inference, proposition or conclusion‛. It can be subdivided into internal and external.
While internal validity is about causal relationship and truthfulness of inferences,
external validity is a concern about generalizability of results. Reliability refers to‛ the
extent to which results are consistent over time if reproduced under [using] a similar method
‚(Cook and Campbell, 1979:37).
All raw ideas and concepts that came out as emotional and spontaneous reflection and
biases at the early stage of this work have been cut back and deleted from this
document. Efforts have also been made to maintain neutrality and not to compromise
the validity of data and the outcomes of the research. Many writers have different lists
(in quality and quantity) for data quality dimensions based on the task of the research.
For this research, dimensions such as: relevance (applicability and helpfulness of data),
accuracy (correctness, reliability and acceptable margin of error), credibility (distance
from bias and truthfulness and trust worthiness in terms of their source and content),
timeliness (the age of the data are appropriate for the task at hand – data delayed is data
denied), accessibility (data are available, or easily and quickly retrievable), interpretability
(data are clear and unambiguous so that users can understand and properly use them),
and integrity (data are mutually consistent and reconcilable) were given close attention
all the way through to ensure validity and reliability (McGilvray 2008:49).
Above all the design and convergence of data collected by means of different tools were
guards to validity and reliability. Some explanations given by interviewees have been
directly quoted in the document. Even though it would be difficult to generalize based
on these explanations, I believe they can tell the existing phenomenon with local tone,
which can also facilitate the triangulation of data obtained from different sources.
3.7. Ethical Concern and Consent Statement
Ethical considerations are expected to arise in any kind of research study. This paper
therefore takes into consideration of those ethical issues on formulating and clarification
of the topic, design, access and use of data, analysis and report of the findings in a
moral and responsible way. Participants were assured that the source of data collected
would remain confidential and that anonymity will be maintained. Also oral consensus
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with all the participants and an official letter from the Department of Public
Administration and Development Management was filed and taken along.
The integrity of all participants to the study shall be upheld with the objective and other
processes of the study made explicit. The study shall use ways and methods of analysis
and report the same in the manner that shall not be embarrassing, stressful,
discomforting, painful or harmful to the readers and the participants.
The study shall take proactive stance not to engage in fraudulent procedures that affect
the study results neither shall it misuse the same. The researcher aims at maintaining
responsible behavior and objectivity as much as possible in conducting the study.
Thus, due attention has been given to balance the advantages and the disadvantages in
all the research processes.
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Chapter 4
Finding and Analysis
This section examines the findings of the study as related to the four major functions of
human resource management namely recruitment and selection, performance appraisal,
training and development and reward in selected civil service bureaus of the Addis
Ababa city government in the context of decentralization. First, it analyses the response
from the CSA and then from the ten sectors. Finally, a comparative analysis was made
based on the findings.
4.1. Analysis of Responses from AACSA
The analysis of public human resources management practice in selected sector bureaus
of the city government in a decentralized context is mainly based on primary sources of
data obtained through questionnaire and interviews. Unstructured interviews have also
been made with the officials of the AACSA particularly Department Heads for
Manpower Planning & Development and HR Documentation and Information System
Administration.
Questionnaires have been distributed to 166 samples purposively drawn from HRM
officers as well as those concerned staffs from the selected bureaus under the city
government of Addis Ababa. The sampled officers were all responsible for conducting
their office recruitment & selection, training, performance appraisal and reward
systems. Responses have been obtained from 120 employees. The profiles of the
respondents are indicated in the table below.
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Table 4.1. Respondents’ Profile
Sr Bureaus Surveyed Sex Level of Education Age Years of Experience Total

No
M F Dip Adv BA MA & 25-30 31-40 41-50 >50 <5 5-10 10-15 >15
Dip Above
1 BOFED 8 3 - 1 8 2 2 6 3 - 4 5 2 - 11
2 BOTID 4 5 - 2 6 1 2 5 2 - 3 5 1 - 9
3 Education Bureau 5 6 - 1 8 2 3 3 4 1 2 4 5 - 11
4 Health Bureau 6 4 - 2 7 1 1 5 4 - 2 5 3 - 10
Road & Transport Bureau 10 2 1 2 9 - 3 6 2 1 3 7 1 1 12
5
Culture & Tourism 7 3 - 3 7 - 2 4 4 - 3 6 1 - 10
6 Bureau
Small & Micro Entr. 11 2 2 4 7 - 3 7 3 - 5 5 3 - 13
7 Dev’t Bureau
Housing &Dev’t 2 7 1 - 2 4 3 - 3 6 - - 9
8 Project Office
Fire & Emergency 7 5 1 2 8 1 3 5 3 1 3 4 3 2 12
9 Prevention
Addis Ababa City 8 2 - 3 6 1 3 5 2 - 2 5 2 1 10
10 Audit Bureau
11 AACSA 11 2 - 1 10 2 2 7 4 - 13
Total 79 41 4 19 75 10 26 57 34 3 30 52 21 4 120
Source: Data collected by Author.
As it can be observed from the above table, female respondents are 34% whereas male
respondents constitute 66% of the total. The age of the respondents range from 25 – 52.
The majority of the respondents (48%) are between 31 and 40 years of age. About 28%
are between 41 and 50 while those whose ages are between 25 and 30 are 21% of the
total. Less than 3% of the respondents are above 50 years of age. Therefore the majority
of the respondents are found to be relevant to the topic under study as they can make
comparisons of the current regime’s practice to the previous one as they have
experiences of working under the then regime.
Analyses of respondents are based on simple statistical techniques such as ratio and
percentage using Ms Excel spread sheet. These were summarized in tabular form and
detailed analysis and conclusions derived are described in the subsequent pages.
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Table 4.2
Compared to the previous system, has decentralization facilitated HRM functions?
(AACSA)
HRM Functions S.Disagree + Neutral Agree + S.Agree Total (%)

Disagree
Recruitment 0 30% 75% 100
Selection 0 40% 60% 100
Promotion 20% 60% 20% 100
Training 10% 40% 65% 100
Performance Appraisal 10% 30% 60% 100
Monetary Incentive 10% 40% 50% 100
Table 4.2 illustrates that compared to the centralized system as more than 50% of the
respondent’s replied, decentralization has facilitated almost all of the HRM functions in
the state government. This implies that, decentralization helps to solve problems by
reducing the bureaucracy involved in decision-making and the time of work process.
Moreover, with a couple of limitations, decentralizing activities in the form of

devolution creates avenue for communication, accountability, transparency,
independency of doing activities, exercising power and responsibilities. This in turn
fastens service delivery in the regional government. The finding on recruitment,
selection, training, appraisal and incentive is in agreement with Demmke (2006) as he
asserted decentralization increases the efficiency and effectiveness of HRM and public
administration in general. The result showed that the HRM practitioners in AACSA also
are of the opinion that decentralization has helped them in their work with one
exception which is promotion. The reason for this could be that it is related with the
evaluation of individual performance, which does not yet function very well.
Table 4.3
Ability and skill level to carry out HRM tasks
Item Alternatives Total %
Do you feel that HR officers & staffs at sector levels are Yes 40%
adequately prepared for the task? No 60%
Total 100
Do employees at the sector level have the appropriate skill level? Yes 30%
No 70%
Total 100
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The above table shows the respondents’ opinion concerning employees’ ability to
handle the HRM functions. As we have seen in Table 4.3, majority of the respondents
from the agency felt that staffs who are responsible for the implementation of HRM
functions in their offices were not adequately prepared. This implies that before the
execution of any policy, conducting training for the work force within the organization,
assessment of human resource in terms of size and quality to take over the
responsibilities and financial resource is necessary.
As Demmke (2006) argued, the achievement of decentralization effort depends on the

skills of managers and HR professionals to carry out their task and responsibilities.
However, Table 4.3shows that a large proportion of the respondent replied employees
at sector level are perceived not to have the appropriate skill level to manage the
devolved HRM functions. As stated above in chapter two, each sector bureau has the
right to recruit, transfer, promote, train and develop their human resources (AACSA,
2009:12-35).
Conversely, it is seen that they lack capacity to effectively execute these tasks.
Respondents reported that at sector level they see inability to exercise their power,
misinterpretation of guidelines, irregularities in decision making and sticking to
outdated manual. All these results in poor performance which implies that unless the
above stated problems get immediate solutions it will have a huge impact in bringing
sustainable development as the civil service is one of the key force in bringing change in
that regard as a Civil Service Change Army (Yelewit Serawit).
4.1.1. Training
In the city government, the AACSA is also responsible to train HRM staff in each sector
bureaus based on their need assessment. It also coordinates and supports the training
program of those government offices. To make the programme effective, it issues
policies to facilitate trainings on directives and guidelines issued regarding recruitment,
selection, transfer, promotion, performance appraisal and discipline measure.
Table 4.4
Training Need Assessment
Alternatives
Item Total %
Yes No
Is the training given by AACSA and Capacity Building Bureau on 20% 80% 100
HRM sufficient or adequate?
Are you satisfied with the result of that training? 30% 70% 100
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As shown in Table 4.4 above, although the AACSA provided training it is considered to
be not sufficient or adequate. Respondents claimed that, there is lack of budget to
conduct intensive training and improper selection of trainees by the bureaus. The other
problem cited by respondents is that the trainings are based on ad hoc needs and makes
to serve the short term interests of individuals and institutions and also absence of
annual training policy review and impact assessment. No training impact assessment
has been made on the employees and the offices performance after completion of
particular trainings. Since each training has its own objectives, there should be
continuous and participatory impact assessment after some periods. The contribution of
those trainings, workshops and seminars should be evaluated both at the agency and
sector levels. This will help to mitigate earlier the problems seen in trainers, training
institutions, etc and improve the quality of trainings.
In theory, training is not a one-time task and it could not be taken as a separate activity
rather as part of the organizational strategic plan. This entails that even if training is
costly, as part of the capacity building at all levels of government should be considered
as an important part of decentralization to address the problem of access to service.
As Olowu (2001) argued, the primary goal of decentralization is empowerment.

Moreover, investment in employee training is one method of creating a primary
internal source, which reduces organizations dependency on external channel.
Similarly, Table 4.4 also depicted the respondents’ opinion concerning the effect of
training given by the agency at sectors level. However, again the majority of the
respondents were not satisfied with the outcome of the training. The reasons given as
also illustrated by table 4.4 are that, the staffs at sector bureaus are not adequately
prepared. Second, they did not have the appropriate skill level to handle their tasks due
to lack of proper training. Consequently, the result is not satisfactory. These results in
weakening of the decentralization effort and hence attention should be given to extend
the level trainings given at various levels.
4.1.2. Attitude towards performance of Bureaus

Organizational success depends on effective handling and implementation of HRM
functions like recruitment, selection, promotion of employees and performance
assessment upon accomplishment. When the attitude of respondents towards the
performance of HRM functions at each level of government is analyzed the
performance at the sector level is less than expected as it can be seen in the table below.
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Table 4.5
Performance of Bureaus
HRM Functions S. Disagree Disagree Neutral Agree S. Agree Total (%)

Recruitment 10% 10% 60% 20% 0 100
Selection 10% 10% 70% 10% 0 100
Promotion 20% 10% 50% 20% 0 100
Performance Appraisal 20% 20% 50% 10% 0 100
It was felt that, before the implementation of decentralization, the existing situation was
not assessed along financial, human capacity and infrastructure lines. Besides, as the
finding in Table 4.4 indicates sufficient training was not given and most employees lack
capacity. This shows that the focus will be on supporting and conducting training at
each sector bureaus.
In line with this, as for the interview question asked whether or not there exist poor
performances, the respondents replied the performance of HRM practice at sector level
is also not as expected. Some of the main reasons as argued by the respondents include
lack of extensive training on HRM guidelines, ignorance of HRM by the top-level
management and lack of HRM professionals. Consequently, experts trained indifferent
specializations such as Language, Education, and Accounting were respo1`nsible for
undertaking the tasks needed. Furthermore, misplacement of professionals, misuse of
power, budget constraints, lack of ethics, absence of continuous support and
supervision and lack of accountability are related problems. They also state the possible
courses of action need to be taken in order to improve the practice of HRM function
across the bureaus of the city government.
When the response is summarized, to make the HRM practice effective empowering
and conducting extensive training on HRM and manpower planning, continuously
monitor and evaluate the implementation of HRM practice, ensure assignment of the
right person on the appropriate place based on merit so that employees will be
encouraged to perform their tasks as expected.
Moreover, as cited in Bratton and Gold (2007) since success of an organization depends
on employees, the responsibility for HRM activities rests with all line managers and
should not be left to HR professionals.
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Concerning the question related to the role of the agency when any bureau make
mistakes in the field of HRM, all the respondents stated that the Agency will try to
influence bureaus and there exists controlling mechanism where-by it uses to take
corrective action. First, it orders the rectification of the irregularities, and then suspends
the execution of the matter until decision is made there on. Finally, initiate the taking of
administrative measure against the official or the civil servant responsible to act. This
entails the effort made by the agency (HR Manual, Vol. 2).

Since 1996, after the declaration of CSRP in Ethiopia, efforts have been made to
implement (ROPA) in government bureaus. In 2002, it started to execute result oriented
performance appraisal system replacing the traditional appraisal system (ACR).
However, again later by 2010 the Ministry of Civil Service Commission had initiated
one of the performance management tools called the Balanced Score Card (BSC) to be
implemented across government institutions throughout the country. However, it has
not been well cascaded to the bureaus and is a work in progress. Nonetheless,
according to the region’s capacity building, before the bureaus start to carry out the new
appraisal system training was given to employees’ in order to create awareness. The
following section shows the response on BSC.
Table 4.6
Assessment of Performance Appraisal
Case/Level 1+2 3 4+5 Total %

Staffs understand the purpose of BSC. 10% 40% 50% 100
Performance appraisal has improved performance 0 20% 80% 100
The working environment facilitates the appraising of performance 10% 60% 30% 100
Employees feel happy by the results of appraising their performance. 30% 40% 30% 100
Department heads feel happy of the results of appraising their performance. 10% 60% 30% 100
A positive performance appraisal leads to rewards. 0 20% 80% 100
A negative performance leads to a sanction. 0 20% 80% 100
There is transparency & continuous follow up when evaluating 50% 20% 30% 100
employees.
There is a strong link between performance & reward in your office. 60% 40% 0 100
Note: Strongly Agree: 5, Agree: 4, Neutral: 3, Disagree: 2, Strongly Disagree: 1
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As indicated above in Table 4.6, performance appraisal system is perceived to have

improved the performance of the bureaus and some of the employees understood its
purpose. However, 10% of them replied the working environment was not facilitating
performance assessment and majority of them were neutral. Similarly, as the system is
expected to improve the performance of the bureaus both civil servants and department
heads are partially happy with the result of the assessment since the new system gave
chance to improve performance. However, 30% of the respondents indicated that
employees did not feel happy by appraising their performance. The possible reasons for
this could be lack of objective and effective performance evaluation mechanism, loose
linkage between performance criteria and evaluation, lack of training and unattractive
remuneration.
Regarding the question whether a positive performance leads to reward and vice versa,
majority of the respondent replied that if an employee perform well he will be entitled
for reward if not he/she can’t get any reward. Unless, employees are rewarded based on
their performance, it creates resentment upon their task and hence influence service
delivery. As stated above in chapter two in the HRM manual (AACSA, 2009) higher
performer employees are rewarded and poor performer cannot be rewarded.
As cited by McCourt and Eldridge (2003), Metcalfe asserted that the success of
performance appraisal depends on participation of employees. Nevertheless,
transparency and continuous follow up concerning evaluation is also weak. If
employees are not allowed to participate and communicate openly with their appraiser,
they do not have the chance to know about their strength and weaknesses. This implies
that in some instance the annual confidential report system is still in place.
As Solomon (2005) argued and again later as cited in 2010 by the Ministry of Civil
Service Commission, the Balanced Score Card (BSC) initiated to be implemented across
government institutions throughout the country has not been well implemented across
all the bureaus just yet. And because it’s a work in progress, absence of transparency in
managing employee performance and weak follow-up of corrective measures are still
prevailing in Ethiopian civil service performance appraisal system.
In addition, the BSC was introduced as one of the reform tool which would help to
manage, communicate and measure. However, from the very outset there were
misunderstandings at the design level. For instance, the city administration of Addis
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Ababa, under the auspices of bureau of capacity building, selected sectors began the
design as well as implementation of Balanced Score Card in 2011/12. The challenges at
the design level includes on how to set higher level objectives. Firstly the sectors
focused on their very mission, later among the 18 higher level objectives almost all
sectors took 17 and only one unique objective-related to their mandates. These resulted
in cascading difficulty as well as later on measuring performances of each sector i.e. the
shared 17 objectives are not relevant to all sectors (MCS, 2013).
As stated above in the first paragraph, lack of linkage between performance and reward
is also the main drawbacks of the appraisal system in the civil service. Informants
claimed that, a positive performance leads to reward and a negative performance leads
to sanction. However, the finding concerning linkage between performance and reward
revealed a negative result. This implies that, even if it is written in the regional HRM
manual, in practice its implementation is inconsistent in the bureaus as the finding from
sector bureaus revealed. The reason for this could be that, the manual is not binding
and there exist budget constraints. Hence, the above stated problems make the
assessment system to be sluggish.
4.1.4. Support
One of the most important roles of the agency is to provide the necessary support on
personnel matters for sectors, consistent with its proclamation. The Agency plays its
supporting role by conducting training, guidance and counseling concerning HR
manual, issuing HRM manual, handling complaints and supervising the bureaus while
performing the HRM functions (AACSA 2009).
To find out more about this supporting role, we have asked the AACSA staffs how they
thought that the Bureaus valued their support. The responses are in table 4.7 below.
Table 4.7
Assessment of AACSA Support

How do you think people in the bureau value the Valued very much 40%
support of AACSA? Much 10%
Not good-Not bad 40%
Not 10%
Not at all 0
Total % 100
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As shown in Table 4.7 above, the agency’s staffs felt that a significant number of people
in the bureaus would not valued the support from the agency that much. The reason for
this might be the attitude of external customers towards the Agency. Customers
perceived that AACSA as an office, which is still sticking to the traditional approach,
having bureaucratic nature, consists of unskilled employees and characterized by
unattractive salary.
As pointed out by Polidano (1999), the basic concept behind New Public management
theory is the transfer and use of valuable and productive management values from the
private sector to the public administration. The important activities in this transfer
include efficiency, best management performance, flexibility, and responsibility
(Polidano, 1999, 5).
Hence, in the process there would be a shift from public administration to public
management. In this transition there are certain actions needed to be accomplished
(Hood, 1991, p96). These activities include reduction of public sector expenses,
application of private sector management model, use of result oriented management
system, high degree of efficiency and accountability. The process of establishing New
Management reform needs the full participation of the public sector. To this end,
inviting the civil service society for taking part in the process is paramount to the
success of the reform programme. The main mechanisms to carry out this transition are
decentralization, privatization and contracting-out.
In Ethiopia, together with the civil service reform agenda, the country had declared to
use free market economy system which had liberalized and transferred most of public
organizations to private ownership. This had helped organizations to keep their staffs’
with attractive salary and other motivational factors drawn from the practices of those
private sectors. But still much remains to be done in that regard.
4.1.5. Performance of HR officers

In regards to the question raised as to whether HRM officers in the bureaus take their
work seriously, majority (60%) of the respondent replied that while the HRM activities
were decentralized, HR officers in respective sector bureaus are considered not to
perform their task as expected. Reasons of inadequate training and lack of capacity,
negligent of HRM by higher management body explain the situation.
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Furthermore, they stated that the agency should issue directives that create
accountability regarding unjustifiable expenses of HRM functions emanating from lack
of enforcing mechanism. Implementations of human resource management information
system could play a role in simplifying the civil service file handling system in the
regional government for which the agency has already established an independent
department called HR Documentation and Information System Administration
Department which could be considered as one of positive steps taken by the agency to
bring improvements in the HRM function. These findings and results lead to the
analysis of sector bureaus as to how they undertake recruitment, selection, training and
development, performance appraisal and reward system using their power.
4.2. Analysis of Response from Sector Bureaus
The following section analyses the response of the selected ten sectors namely BOFED,
BOTID, Education, Health, Road and Transport, Housing and Dev’t Project, Fire and
Emergency, Culture and Tourism, Small and Micro Enterprise and Audit Bureaus in a
summarized manner.
Figure 4.1 Responses on Decentralization (Sectors)
Degree of Facility
80%
% of Respondents
Disagree + S. Disagree
60%
Neutral
40% Agree + S.Agree
20%
0%
HRM Functions
As shown in Figure 4.1 above, majority of the respondents indicated that,

decentralization has facilitated recruitment, selection, promotion and training.
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However, performance appraisal as 25% and monetary incentives 33% of the

informants indicated, in comparison with the other functions both has some problems.
The reason for this could be, lack of awareness and commitment, lack of budget and the
bureaus failure to prepare budget schedule for reward purpose. This shows that,
overall, decentralization facilitates the HRM functions. Yet, attention should be given
for the proper implementation of BSC and corresponding monetary incentives.
4.2.1. Recruitment
In the regional government after the decentralization of power, each sector has the right
to recruit employees to fill vacant posts. To do so, they either use internal or external
channels to attract the best candidate that can suit unoccupied post. Tables 4.8-4.10
depict responses on recruitment.
Table 4.8
Recruitment Channel
When you were recruited for the first time to join your bureau, Radio 25%
how did you find the job opening? Newspaper 47.50%
On-campus 5%
Television 7.50%
Word of mouth 15%
Others 0%
Total 100
As shown in table 4.8, majority (47.5%) of the employees were recruited through
newspaper advertisements. One fourth of the respondents said that recruitments were
made through announcements made on radios. About 15% of the respondents were
employed through word of mouth, which is an informal and internal source of
recruitment. It usually has an adverse effect upon reaching other job seekers. Since the
sectors also use internal source of recruitment using internal promotion, new applicants
may not get the chance to be recruited. However, there are also cases where some of the
respondents obtained their jobs through information by television advertisements and
on-campus recruitment.
Cited in the Addis Ababa City Administration Civil Service Proclamation No. 6/2003,
Article 12 each sector bureau has the right to advertise every vacant position. Moreover,
every government office may solicit graduates of higher educational institutions for
recruitment in cooperation with institutions. In addition, exceptionally for those civil
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servants having social and health problem, for employees who upgrade themselves
based on their office manpower planning, positions like top-level manager executive
secretary, cabinet members’ driver and cashier, it is possible to assign without
advertisement so long as they fulfill the minimum requirement of the vacant post
(AACSA, 2009:8).
In this regard, based on the responses obtained respective bureaus are pursuing a
widely advertised mechanism to reach out to large pool of candidates in order to fill
vacant positions. Nonetheless, as 15% of the respondents cited employments are also
being effected through word of mouth over informal and internal source of recruitment
which is against HR manual and guideline set out by the CSA as this is expected to
happen only on exceptional cases not on a regular basis. Such practice has an adverse
effect upon reaching out to other job seekers and it also has a compliance issue in terms
of not following the guideline set out by the agency.
4.2.2. Recruitment Procedure

The impact of HRM on achieving and retaining employees is seen using some of the
underlying issues related to human resource. To this end, a sound HRM procedure and
practice has become increasingly important. The following table shows whether the
regional civil servants recruitment procedures allow bureaus to recruit the right
candidate for a right position or not.
Table 4.9
Recruitment Procedure (1)
Do you think that the current recruitment procedure allows Yes 27.5%
bureaus to recruit the right person to the right job? Sometimes 67.5%
No 5%
Total 100
As shown in Table 4.9, more than half of the respondents replied that, the current
recruitment procedure of the region sometimes allows bureaus to hire the right person
to the right post. Nevertheless, only 5% of them responded that the procedure has some
drawbacks. The possible explanation for this could be the severe competition in the
external labour market coupled with the ever increasing cost of living and the restricted
recruitment condition in civil service organizations, which makes finding candidates
difficult who meet the requirements for some positions.
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The minimum requirements which are prepared by the agency are also some of the
limiting factors to recruit professionals from the labour market. The ability of an
organization to attract competent applicants is the base for improving service delivery
in the regional government. Table 4.10below depicts the responses related to attraction
of suitable applicant for a vacant post.
Table 4.10
Recruitment Procedure (2)
Item DisAgree+S. Neutral Agree + Total
DisAgree S.Agree %
Your bureau is able to attract suitable applicants 12% 30% 58% 100
to fill vacancies.
The current wage attracts the best recruits for 40% 37% 23% 100
the various posts
According to the HRM manual, the recruitment process in the regional government
civil service sectors begins with filling a requisition form of vacant post from
department or sections by checking whether it is supported by budget or not. As shown
in table 4.12, 58% of the respondents indicated that, their respective bureaus have the
abilities to attract suitable applicant. Only 12% of the respondents express their
disagreement. The reasons given as also illustrated in Table 4.9 are that, the minimum
requirement which is prepared by the agency, is the restraining factor to recruit
professionals from the labour market. Besides the other possible explanation for this
might be, some of the bureaus did not follow manpower-planning, poor screening,
which results from lack of capacity, and absence of merit based recruitment.
On the other hand, the table also revealed that the current wage structure of the civil
service was not fully attracting the best candidates for various positions although it is
agreed that if performed well recruitment improves service delivery. As (Paulos
2007:65) argued, the structures of the Ethiopian public sector pay system are uniform in
most of the institutions and hence civil service professionals’ salary scale has based on
their position and seniority. Similarly, this is also the case in the Region.
4.2.3. Selection
The goal of selection process is to make a proper match of employees with jobs and the
organization. To do so, the practice in the City government’s bureaus concerning
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selection of candidate is based on the selection criteria set by the AACSA manual. Table
4.11 and 4.12 shows the responses on selection.
Table 4.11
Selection Criteria
Is the selection Criteria Set by Civil Service Agency manual Yes 93%
useful? No 7%
Total 100
As shown in Table 4.11, almost all of the respondents replied that the criterion prepared
by the Agency’s manual has practical importance. In the absence of consistent criteria, it
would have been impossible to select the best candidate and create a proper match
between people and jobs. In order to make the selection process simple AACSA set
selection criteria, which is useful when conducting recruitment and selection. It is
divided in to two parts based on the nature of the position. The first one is for those
tasks, which demand practical, written exam and interview. The second category is for
those tasks, which require written exam and interview only. In both cases affirmative
action is also considered (AACSA 2009). Although using these criteria the bureaus are
exercising to select the right person among a pool of candidates, as indicated by few
respondents regardless of the criteria, selection might also be distorted by interference
of an outsider.
Table 4.12
Selection Procedure
Item DisAgree + Neutral Agree + Total %
S.DisAgree S.Agree
Selection is based on merit only. 27% 40% 33% 100
A candidate can influence the decision to be selected. 48% 25% 27% 100
An outsider can influence the decision to be selected. 40% 30% 30% 100
As shown in Table 4.12 above, more than 20% of the respondents replied that selection
of candidates is not only based on merit but also some other criteria like personal
contact as claimed by respondents from finance 5%, Education 4%, Housing & Dev’t
Project 9%, Small and Micro Enterprises 2% and 7% from Health bureaus.
Although, it is also written in the agency’s civil servants HRM manual, some
institutions could not follow the manual often as they interpret it wrongly. This finding
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is in line with Paulos (2007) argument, which states inter-organizational transfer

selection is made based on personal contact and promotion is being made not on
individual performance. Although some of the respondents argued that selection is
made based on merit only, as 48% of the respondents indicated a candidate could not
influence the decision to be selected.
Besides, regardless of the HRM manual, an outsider has the ability to influence the
decision to be selected as 30% of the respondents claimed. The possible reason for this
could be, interference, which creates an influence on personnel’s and may have an effect
on hiring new and promoting senior staff. Moreover, the manual is not binding and
there is still more work need to done by the agency as far as monitoring is concerned.
4.2.4. Training
According to the civil servant proclamation, each office has the responsibility to identify
and assess training needs, to prepare action plan and budget schedule. Training and
development plays a significant role in improving individual and organizational
performance. In this respect, AACSA and CBB conducted training on civil service
reform. The following Table 4.13 shows the response on training and development
practice in the bureaus.
Table 4.13
Training and Development
Item DisAgree + Neutral Agree + Total %

S.DisAgree S.Agree
The training organized by the Capacity Building & Civil 22% 28% 50% 100
Service Agency improves functioning of your
department.
Training is effective in improving the bureau’s 63% 100
27%
performance in service delivery. 10%
Training is effective in motivating employees. 12% 15% 73% 100
Within your office there is equal access to training 55% 25% 20% 100
employees.
Selection for training is based on a proper need 55% 30% 15% 100
assessment.
As shown from Table 4.13, the training organized by the CBB and the CSA on the Civil
Service Reform Programmes improved the functioning of the departments. Similarly, it
is effective in enhancing the performance of the bureaus as a whole in terms of service
delivery.
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According to the AACSA manual (2009:34), under the City government every civil
service bureau shall have the duty to identify the training needs of the office, the civil
servants, to prepare plans and budget for training and thereby ensure that the civil
servants receive the necessary training and furnish information there on to the Agency.
The Agency in turn shall train HRM staff based on the training needs of the sector
bureau, coordinate and support the training program of the different government
offices. In addition to this to make training of civil servants effective, the Agency shall
issue a policy with regard to the conditions of their training locally and abroad and
supervise the execution of same (AACSA, 2009:34).
Nevertheless, based on the responses as can be seen from the above table, there is no
equal access for training and at the same time selection of trainees is not based on
proper assessment as more than half of the respondents indicated it respectively. The
possible explanation for this could be during selection of trainees, the relevant
organizations were not consulted properly. Consequently, not all employees get the
chance for training.
In the region, at present every government sector implements the Balanced Score Card
(BSC) as part of one of the five Sub Programs of the Civil Service Reform Program.
Performance management is one of the most important aspects of HRM. It is the base
for enhancing individual and organizational improvement. It needs integrating among
other things, information, training and performance related pay. Figure 4.2below shows
the responses on BSC.
Figure 4.2 Responses on Performance Assessment (Sectors)
80%
70%
% of response
60%
50%
40%
30% S.Disagree
20%
10% Disagree
0% Neutral
Agree
Item
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As shown in Figure 4.2, some of the civil servants understood the purpose of Balanced
Score Card (BSC). Nevertheless, majority of the respondents were uncertain whether
this assessment system has improved the performance of bureaus or not.
Implementation of BSC is a recent phenomenon not only in the region but also at
country level. Consequently, most employees did not have in depth knowledge.
According to the AACSA manual (2009) although intensive training has been given,
lack of awareness, bureaus attitude in preparing the assessment based on job
description than institutional strategic plan; evaluating behavior than performance,
failure of institutions to change government key objectives into implementable targets
and lack of participation during preparation were some of the reasons. The table also
showed that the working environment was not facilitating performance assessment in
the bureaus. This is shown by 35% of the respondents. Similarly, some of the employees
and few of the department heads are not satisfied when assessment is conducted
reasons being lack of commitment, misunderstanding of employees that BSC as a
political agenda than a management approach and in most organizations there exist a
tendency to meet deadlines and not to go further. However, if appropriately executed,
this BSC will add value for the improvement of performance culture.
The same number of respondents replied that neither positive performance lead to
reward nor negative performance leads to sanction. The possible reason for this could
be inconsistent implementation of reward. As Armstrong (2001) claimed, performance
management is concerned with open communication and involvement. Follow up is
also necessary when implementing assessment since it helps to take remedial action.
Yet, as indicated in the table above, more than 40% of the respondents indicated that,
transparency and continuous follow up during evaluation were not that much. Besides,
majority of the respondent also replied that there is no strong link between performance
and reward in their office.
In reality, motivating employees is one factor for enhancing performance. Though it is

cited in the agency’s manual that based on individual performance there is a means of
rewarding employees, it is not properly practiced with the exception of some bureaus in
the region. A study conducted at country level also showed that, the performance
appraisal system suffers from lack of transparency, weak follow up and the linkage
between performance and reward system is loose (Solomon 2009). From the finding,
this is also the case in the bureaus surveyed. This leads us to the assessment of the
reward systems in the region.
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4.2.6. Reward
Reward system is one means of attracting and retaining potential employees. Table4.14
shows responses on reward. In the region, every sector is responsible to create a means
for rewarding best performers.
Table 4.14
Reward System
Item/Level Disagree Neutral Agree Total %

The bureau has been empowered to put differences in salary 87% 10% 3% 100
structure.
The uniform salary structure attracts different skills and 17% 100
55% 28%
professionals.
There is a reward system based on performance in your office. 80% 5% 15% 100
Is the current salary structure improving service delivery? 68% 30% 2% 100
Regardless of the declaration of a decentralized HRM system, bureaus have not been
entrusted with developing own salary structure as majority responded. Nevertheless, as
Paulos (2007) asserted, the country follows uniform personnel structure, salary is
administered at the federal level and hence the regional governments and the
corresponding government bureaus follow uniform salary scale.
Related with this, as depicted in Table 4.14 the homogeneous salary structure did not
attract different skills and professionals, as 55% of the respondents replied. Though
uniform salary scale has the benefits of restricting organization to organization brain
drain, it hinders bureaus from recruiting qualified employees. This in turn breaches the
decentralized policy and confines authority of the sector bureaus from attracting and
maintaining employees. This implies that there exists an increase in turnover in the
region.
In addition to the above finding, majority of the respondents indicated that, there is no
reward system based on performance. In some case, it is implemented. As claimed by
respondents from BOFED 3%, Fire & Emergency Prevention 5% and Health Bureau 7%.
As 68% of the respondent replied, the current salary structure is not improving service
delivery. The finding in Figure 4.6 above indicates 60% of the informants respond
performance of employees is not attached with the reward system. Consequently, the
pay structure may be a necessary but not a sufficient condition for enhancing service
delivery. Relatively, non-monetary incentives like recommendation letters and awards
might be considered for extensive use.
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4.2.7. Support
Support from the AACSA is expected to improve administrative and technical capacity.
However, as shown in the table below 85% of the respondents indicated that the
support from the agency is not sufficient. In theory, however, the agency has the power
and duty to supervise and issued directives for the proper implementation of HRM
functions in the region. The possible explanation for this might be lack of manpower
and professional’s turnover that makes the Agency not to play its supportive role as
expected.
Table 4.15
Assessment of AACSA Support for Sectors
(Response from Sector Bureaus)

Is the support given by the CSA sufficient in terms of HR Yes 15%
functions to improve the service delivery? No 85%
Total 100
4.3. Comparative Analysis

The following part provides a comparison of the response from the AACSA and the
sectors under the heading decentralization, recruitment and selection, training,
performance appraisal, reward and support.
4.3.1. Decentralization
In general, the respondents from the agency and the bureaus were of the opinion that
decentralization facilitates the executions of HRM function in the city’s government.
Regarding recruitment, selection and training the two sets of staffs show a great
agreement. However, in both cases some respondents were neutral, 20% of the
informants from the AACSA indicated that promotion of employees was not facilitated.
It has a direct link with full implementation of BSC and partially with the incentive
system. Compared to the AACSA, sector bureaus responded more positively
concerning promotion. The reason for this might be previously it was centralized but
currently it is decentralized. Hence, it gives them chance to decide. The finding also
revealed some of the respondents from the sector bureaus described that
decentralization is not facilitating performance appraisal (25%) and monetary incentives
(33%) in the regional government. The reason for this could be lack of awareness and
commitment about BSC, lack of finance and failure to prepare a budget plan for reward
purpose.
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4.3.2. Recruitment and Selection

The role of AACSA as indicated in the civil servant proclamation is that, preparing and
updating the necessary manual. Moreover, whenever necessary approving recruitment
of a new employee, who is entitled to a payment of higher salary than the base salary by
the recruiter office. Similarly, supporting and supervising sector bureaus as to whether
they are performing this activity based on the manual or not.
In doing this, the finding from the agency (Table 4.5) concerning performance of sector
bureaus in the city’s government indicated that, there is still a lot of work to be done in
that regard to bring them to the required level. The possible reason for their weak
performance is attributed to, as the finding in Table 4.3 revealed, they were not
adequately prepared 60% and they lack the required skill 70%.
In contrast as shown in Table 4.8 and 4.9, 5% of the sector bureaus informants claimed
that the recruitment procedure set by the agency did not allow sectors to recruit the
right person. Besides, 40% of them argued that the current salary structure was not
attracting the best applicants. The reason for this might be the restricted recruitment
procedure and the singular wage structure the civil service follows.
Related to this, as indicated in Table 4.10, 7% of the respondents claimed that, the
selection criteria in the manual are not being as useful as they should be for sectors.
Likewise, Table 4.13 depicted that selection is not made based on merit (27%) an
applicant cannot influence selection (48%) rather an outsider can influence selection
decision (30%). The reason for this could be interference, lack of enforcing mechanism
and weak controlling by the agency.
4.3.3. Training
The city’s agency conducted training on HRM functions for HR officers in sector
bureaus. However, as shown in Table 4.4 informants of the Agency reported that, the
training was not sufficient at each level and the result was unsatisfactory. This can be
expressed in terms of weak performance as the finding in Table 4.5 depicted. In the
same line, latter the CSA together with CBB conducted training on CSRP which is
currently one of the capacity building programs being undertaken by the government.
As the finding in Table 4.13 showed, it improves the functioning of sector bureaus.
However, in most sectors access for training is minimal and assessment is improper as
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similar informants (55%) in both case responded. The reason for the above stated
problem could be lack of budget to give training and lack of skilled training officer to
conduct need assessment.

As shown in Table 4.6 and Figure 4.2, in both case despite difference in percentage the
response indicated that some of the employees understood the BSC. Hence,
performance assessment is expected to enhance the performance of bureaus. In effect
from the two sides some respondents were neutral. However, as 10% of the agency and
22% of sectors informants replied that employees did not understand the BSC and it has
not improved the performance of the bureaus 18% as given by sector respondents.
Similarly, 10% of the agency’s and 35% of sector informants argued, the working
environment is not as such conducive.
The finding also revealed that 30% of the agency and 32% of sectors informants
reported employees were not fully happy on the result. Equally, 10% of the agency and
17% of sector bureaus respondents claimed, department heads felt the same. Besides,
80% of CSA informants reported a positive performance lead to reward and vice versa
compared to 50% and 39% of sector bureaus respondents respectively. Likewise, half of
the respondents from both sides stated that, transparency and follow up is also weak to
take corrective measure. Finally, 60% of CSA and 70% of sectors informants argued, the
link between performance and reward system is not that much strong. From the above
findings, the two sets of respondent show agreement except issues regarding the
working condition and weather performance lead to reward or not. The reason for this
gap might be lack of awareness, inconsistent implementation of reward, lack of
transparency, weak follow-up and loose attachment between performance and reward.
4.3.5. Reward
As the finding in Table 4.6 and Figure 4.2 revealed, in the agency and sector bureaus the
link between performance and reward was not strong. In both case, more than half of
the respondents argued respectively. As well, as shown in Table 4.14 response from
sector bureaus showed that, the uniform salary structure was un obstacle to attract
skilled professionals (55%); employees were not rewarded based on their performance
(80%), though some sectors were exercised. Finally, the recent salary scale did not
improve service delivery (68%).
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4.3.6. Support
Concerning support from the agency, as shown in Table 4.7 majority of the respondents
replied that the support of the Agency towards the bureau is good. However, the
respondents from sector bureaus as indicated in Table 4.15 claimed that the support of
the Agency towards the sectors is not to the expected level just yet.
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Chapter 5
Summary, Conclusion and Recommendation
5.1. Summary
The paper has explored the link between decentralization and HRM function in selected
Civil Service Bureaus of the Addis Ababa City Government in order to answer two
interrelated questions of whether decentralization has facilitated or hampered the
implementation of HRM function, and to identify possible problems that occur after the
implementation of the policy. The study has established that, though the degree of
facilitation differs, decentralization has facilitated the execution of HRM functions.
However, promotion, reward system and performance assessment affected the policy.
The findings from the AACSA and the ten sectors surveyed on each of the activities are
summarized in the next section.
Findings from AACSA
The application of decentralization in the regional government has facilitated the

implementation of HRM functions in general. This is shown in Table 4.2. However, as
20% of the respondents from the agency indicated, promotion as one function of HRM
is not facilitated. The reason for this might be attributed to the lack of proper
implementation in BSC. Further, adequate preparation was not made before the
implementation of the policy at sectors level. As shown in Table 4.3, shortage of skilled
personnel, inability to exercise power, lack of information, misinterpretation of manuals
and lack of uniform decision making could be some of the main reasons not to fully
attain improvement in some of the HRM functions.
Although trainings had been given, it was still not sufficient and the result was not
satisfactory at bureaus level. As the finding depicted, it results from inadequate
preparation and lack of capacity. Moreover, as the informants reported other problems
related to the lack of attention for HRM by top-level management, lack of HRM
professionals, which forced sectors to assign non-management graduate. Likewise,
misuse of power and misplacement of professionals were some of the reasons given for
poor performance.
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The other finding is that, as indicated in Table 4.6, half of the informants claimed that
employees were aware of BSC. However, 30% of them responded that employees were
not happy and transparency and follow-up is weak (50%). Furthermore, the link
between performance and reward is loose (60%). The reason for this could be that the
manual is not binding; some sectors use an old system.
The AACSA supports sectors among others, by conducting training, issuing HRM
manuals and controlling. Yet, 40% of the respondent indicated that its support to sectors
was not satisfactory. This could be linked to high turnover and shortage of manpower.
Similarly, half of the respondents do not put high value on the agency’s support for
reasons associated with the attitude of external customers towards the Agency. Looking
at the performance of HR officers, it can be said that poor performance of personnel is
also observed due to shortage of skilled professionals in the area and failure to follow
HRM manual.
Findings from Sector Bureaus
Recruitment and Selection
Using their authority each bureau employs both internal and external source of
recruitment to fill a vacancy. Nevertheless, as the response showed the current
recruitment manual does not allow the bureaus to hire the right person for the right
post (5%). This is due to the restricted minimum requirement needed for a specific
position. In fact, the bureaus were trying to attract applicants for a vacant post. Yet, as
indicated by 12% and 40% of the respondent respectively, their bureaus were not able to
attract best applicants as the current salary scale was not attractive. This could also be
attributed to failure to follow manpower-planning, absence of merit, lack of proper
training after entry, and the uniform salary scale in the civil service.
Selection of candidates need a parameter to choose the best fit among a pool of
applicants. In doing this, as the feedback indicated the bureaus use the selection
criterion. In contrast, selection is not made only based on merit but also friendship and
interference. Some respondents claimed that selection has been made based on merit
only and insisted that a candidate could not influence selection decision. On the other
hand, as some of the respondent replied an outsider could influence the decision to be
made.
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Training and Development
Training and development is vital for the improvement of individual and

organizational goal attainment. As the finding in Table 4.4 and 4.13 correspondingly
depict, the training conducted by the agency was not sufficient and satisfactory. While,
the training given by the capacity-building bureau and AACSA on CSRP improved the
functioning of each office. Hence, there is a change in service delivery. Further, training
is effective in motivating employees as majority of them indicated. Nevertheless, there
is unequal access to training and the assessment procedures need attention. The reason
for this might be consulting irrelevant organization and lack of skilled HRM specialist
to handle need assessment.
Performance Appraisal
The execution of BSC is a recent phenomenon in sector bureaus of the city government.
Most employees understood its purpose. In effect, it was expected to improve the
performance of the bureaus. However, the working environment is not conducive as the
finding from sector bureaus revealed. The reason for this could be lack of incentives and
training, poor human capacity to set targets, lack of objective performance criteria and
lack of commitment. The response also illustrated that some employees and department
heads were not happy of the result of their performance. Equally, BSC gives room for
open dialogue but, transparency and continuous follow up is so weak and there is loose
attachment between performance and reward. This might be due to lack of
participation, inconsistent implementation and lack of resource.
Rewards
The reward system as one major function of HRM has not had facilitated under
decentralized HRM context as the finding above revealed. The regional bureaus did not
have the capacity to put different salary structure. As stated earlier, the country as a
whole follows uniform salary structure. Moreover, the homogeneous salary scale did
not allow some sectors to attract skilled professionals, as the scale is constant; it
hampers bureaus not to recruit qualified employees compared to the scale in private
sectors. The salary structure again had not been necessarily improving the service
delivery. Lastly, the support from the Addis Ababa Civil Service Agency for sectors
needs focus.
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5.2. Conclusion
It is clear from the preceding discussions that the regional government decentralizes
recruitment, selection, promotion, training and development, performance assessment
and reward system. Their execution showed better performance. However, promotion,
BSC and reward system did not perform as expected, because of resource shortage, lack
of capacity and awareness, and loose linkage between performance and reward.
Moreover, the current wage structure and to some extent the recruitment criteria in the
civil service sometimes hinder sectors effort to attract the best candidates. Likewise,
selection often is distorted by interference.
The finding also revealed there exists inadequacy of training, unequal access for
training and improper need assessment. Related with this, BSC was expected to
improve bureaus performance. Nevertheless, the working environment is not fully
conducive as responded by sector informants. Besides, some employees and few
department heads felt unhappy of the result. Similarly, transparency, follow-up and
linkage between reward and performances are also weak.
Regarding reward, the uniform salary scale did not allow some sectors to attract various
skilled professionals and it was not fully enhancing service delivery. Further, the effort
to make reward system based on performance is insignificant. Finally, support from the
agency towards sectors is minimal.
Above all, there is a positive link between decentralization and HRM functions in sector
bureaus, as decisions can be made faster, simpler procedures are needed and it raises
the efficiency and effectiveness of HRM and public administration. In addition,
effectiveness is increased, because decentralization increases the manager's discretion,
thus enabling him to recruit, evaluate, offer incentives, promote, suggest training needs
and communicate directly. Hence, this will lead to enhancement of service delivery.
5.3. Recommendations
To overcome the problems that occur in the execution of the policy, there is a need for
skilled human and financial resources, searching a means to differentiate high and low
performers by using performance criteria like quantity, quality, timeliness and budget
spent on doing a job. Moreover, competitive advantage in the form of effective and
efficient service delivery can be ensured in public sectors if employees get proper
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training and development, which is the soft model of HRM. In line with this, there has
to be a mechanism in increasing the efficiency and effectiveness of training programs by
checking out whether the provided training has improved the trainees’ managerial
skills and knowledge as well as their performance.
Thus, conducting on the job and of the job training at each managerial and government
level using a selection criteria, creating strong link between performance and reward,
implementations of non-monetary incentive such as recommendation letter is also
essential.
Besides, making the performance assessment system more open and carrying out
continuous follow up, strengthening the monitoring and evaluation role of the city’s
Civil Service Agency and providing the necessary technical and interpersonal support
from the top-level managers should make the decentralization process more
sustainable.
Moreover, Civil service is a reputable sector of employment in developed countries.

This is because the civil service has a strong legal protection, job security and fringe
benefits. The level of pay is also comparable with the private sector in these countries.
The reverse is true in some developing countries like Ethiopia.
This is because of a range of factors including low level of pay compared to the private
sector, low level of benefit packages, job insecurity due to political patronage and lack
of legal protection. As a result, the public service is experiencing as big problem of brain
drain to the private and the NGO sectors. Following which the civil service sector is in
severe shortage of educated, skilled and experienced personnel. At the same time, those
few experienced and educated employees in the civil service are dissatisfied with the
low level of pay, lack of office facility, low or nonexistent fringe benefits and poor
working environments.
Therefore, improving the reward system in the civil service is a basic requirement to
attract and retain qualified civil servants. Reward system is one of the components of
human resources management sub-program which has not yet practical. This urgent
and crucial program needs special attention to lift the civil service from its current
situation – low prestige, poor pay and poor staffing.
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Annex
Annex A
QUESTIONNAIRE (AACSA)
College of Business and Public Administration
A Study on the Practice of Public Human Resources Management with a focus on

selected Civil Service Bureaus of Addis Ababa City Government
The questionnaire is prepared by Girum Berhanu. I am currently a postgraduate

student at the Addis Ababa University Department of Public Administration &
Development Management majoring in Development Management studies. The
objective of the questionnaire is to collect data regarding the practice of Human
Resource Management in selected Civil Service Bureaus of the Addis Ababa City
Administration and their impact on a decentralized context, which will be used to
prepare a Thesis required for my MA degree. The aim of this research is to contribute to
a better understanding of the circumstance under which HRM practitioners in Ethiopia
have to function. Youare kindly requested to read the questions thoroughly and
respond accordingly. The result of this survey will be treated with utmost
confidentiality and will be strictly used for academic purpose only.
I thank you in advance for your cooperation.
Instructions:
 You are not required to write your name on this questionnaire.

 Please answer question by tick mark.
Are you
Male Female
Education Status
a) Diploma c) BA Degree
b) Advance Diploma d) MA & above
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1. For how many years have you been working in the agency? ( circle)
c) 1-5 b) 6-10 c) 11-15 d) 16-20 e) 21-25 f) >26
2. Note: Strongly Agree:5, Agree:4, Neutral:3, Disagree: 2 Strongly Disagree:1
Compared to the previous system 1 2 3 4 5
1 Decentralization facilitated the implementation of

human resource management functions in the sector
bureaus.
2 Decentralization made recruitment easier for civil
service.
3 Decentralization made selection of candidates easier for
civil service.
4 Decentralization facilitated promotion.
5 Decentralization facilitated training of civil servant.
6 Decentralization improved the quality of performance
appraisal.
7 Decentralization Facilitated monetary incentive system.
3. As a result of decentralization sector bureaus have received more duties. Do you feel
that staffs at these levels are adequately prepared for their task?
a) Yes b) No
4. Do employees at the sector level have the appropriate skill levels?
a) Yes b) No
5. Is the training given by the Capacity Building and AACSA on HRM sufficient?
a) Yes b) No
6. Are you satisfied with the result of that training?
a) Yes b) No
78
[
7. If you could introduce new types of training for those sector bureaus, what would
that be?
______________________________________________________________________________
______________________________________________________________________________
8. Based on your overall assessment, do you believe that the following activities are
being performed as expected at the sector level? Strongly agree: 5, Agree: 4,
Neutral: 3, Disagree: 2, Strongly Disagree: 1
Activity 1 2 3 4 5
Recruitment
Section
Promotion
Performance Assessment
9. If you indicated above that at the sector level an HRM function was not performed
well, please indicate what – in your view the reason for this underperformance
could have been?
a) ______________________________________________________________
b) ______________________________________________________________
c) ______________________________________________________________
10. What could be done to improve the HRM function?
a) ______________________________________________________________
b) ______________________________________________________________
c) ______________________________________________________________
11. When any bureau makes mistakes in the field of HRM (recruitment, promotion,
transfer) what can the Civil Service agency do?
a) ______________________________________________________________
b) ______________________________________________________________
c) ______________________________________________________________
79
[
12. Performance Appraisal
Note: Strongly Agree: 5, Agree: 4, Neutral: 3, Disagree: 2,Strongly Disagree: 1
Question 1 2 3 4 5
1 The civil servants understand the purpose of the BSC.
2 Performance appraisal has improved the performance
of the sector bureaus.
3 The working environment in your office facilitates the
appraising of performance
4 Employees feel happy by the results of appraising their
performance.
5 Department heads feel happy of the results of
appraising their performance.
6 A positive performance appraisal leads to rewards.
7 A negative performance leads to a sanction.
8 There is transparency & continuous follow up when
evaluating employees.
9 There is a strong link between performance & reward in
your office.
13. Do you think that the AACSA can adequately support the HRM function in the
bureaus?
a) Yes b) No
14. How do you think people in the bureaus value the support of the Civil service
Agency?
a) Valued very much b) much C) not good- not bad

d) note e) not at all
15. Overall, do HRM officers in respective sector Bureaus take their work seriously?
a) Yes b) No
16. Would you have any additional comments?
a) ______________________________________________________________
b) ______________________________________________________________
c) ______________________________________________________________
THANK YOU!
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Annex B
QUESTIONNAIRE (SECTORS)
School of Business and Public Administration
A Study on the Practice of Public Human Resources Management with a focus on

selected Civil Service Bureaus of Addis Ababa City Government
The questionnaire is prepared by Girum Berhanu. I am currently a postgraduate

student at the Addis Ababa University Department of Public Administration &
Development Management majoring in Development Management studies. The
objective of the questionnaire is to collect data regarding the practice of Human
Resource Management in selected Civil Service Bureaus of the Addis Ababa City
Administration and their impact on a decentralized context, which will be used to
prepare a Thesis required for my MA degree. The aim of this research is to contribute to
a better understanding of the circumstance under which HRM practitioners in Ethiopia
have to function. You are kindly requested to read the questions thoroughly and
respond accordingly. The result of this survey will be treated with utmost
confidentiality and will be strictly used for academic purpose only.
I thank you in advance for your cooperation.

Instructions:
 You are not required to write your name on this questionnaire.
 Please answer question by tick mark.
Name of Bureaus Bureau(✓)
1 Finance and Economic Development
2 Trade and Industry Development
3 Education Bureau
4 Health Bureau
5 Road & Transport Bureau
6 Housing &Dev’t Project Office
7 Fire & Emergency Prevention & Rescue
8 Culture & Tourism Bureau
9 Audit Bureau
10 Small & Micro Enterprise Dev’t Bureau
81
[
Are you
Male Female
1. Education Status
a) Diploma c) BA Degree
b) Advance Diploma d) MA & above
2. For how long did you work in your bureau? (Circle)
a) 1-5 b) 6-10 c) 11-15 d) 16-20 e) 21-25 f)>26
I. Decentralization
Note: Below follow a number of general statements. Please indicate your agreement or
disagreement (5=strongly agree, 1=strongly disagree).
Compared to the Previous System is: 1 2 3 4 5

1 Decentralization facilitated the implementation of
human resource management functions in your bureau.
2 Decentralization made recruitment easier for civil
service.
3 Decentralization made selection of candidate easier for
civil service.
4 Decentralization facilitated promotion.
5 Decentralization facilitated training of civil servant.
6 Decentralization improved the quality of performance
appraisal.
7 Decentralization facilitated monetary incentive system.
II. Recruitment
4. When you were recruited for the first time to join this bureau, how did you find
the job opening? (Circle).
a) Radio b) Newspaper c)On-campus recruitment d)television e)Words of mouth

F) Other, please specify ________________.
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[
5. Do you think that the current recruitment procedure allows your bureau to recruit
the right person to the right job?
a) Yes b) Sometimes c) No
III. Selection
6. Is the selection criteria set by the Civil Service Agency manual useful?
a) Yes b) No
Question 1 2 3 4 5
1 Your bureau is able to attract suitable applicants to fill
vacancies.
2 The current wage attracts the best recruits for the
various posts.
3 Selection is based on merit only.
4 A candidate can influence the decision to be selected.
5 An outsider can influence the decision to be selected.
8. Training and Development
Note: Strongly agree:5, Agree:4,Neutral:3, Disagree:2, StronglyDisagree:1
Question 1 2 3 4 5
1 The training organized by the Capacity Building & Civil
Service Agency improves functioning of your
department.
2 Training is effective in improving the bureau’s
performance in service delivery.
3 Training is effective in motivating employees.
4 Within your office there is equal access to training
employees.
5 Selection for training is based on a proper need
assessment.
83
[
9. Performance Appraisal

Question 1 2 3 4 5
1 The civil servants understand the purpose of the BSC.
2 Performance Appraisal has improved the performance
of bureau.
3 The working environment in your office facilitates the
appraising of performance.
4 Employees feel happy by the results of appraising their
performance.
5 Department heads feel happy of the results of
appraising their performance.
6 A positive performance appraisal leads to rewards.
7 A negative performance leads to a sanction.
8 There is transparency & continuous follow up when
evaluating employees.
9 There is a strong link between outcome& reward in
your office.
10. Reward System

Question 1 2 3 4 5
1 The bureau has the capacity to put differences in salary
structure.
2 The uniform salary structure attracts different skills and
professionals.
3 There is a reward system based on performance in your
office.
4 Is the current salary structure improving service
delivery?
11.Is support from the CivilService Agency sufficient?
a) Yes b) No
[
THANKYOU!
84

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ADDIS ABABA UNIVERSITY

SCHOOL OF GRADUATE STUDIES

HUMAN RESOURCES MANAGEMENT PRACTICE IN

SCHOOL OF GRADUATE STUDIES

HUMAN RESOURCES MANAGEMENT PRACTICE IN

In Partial Fulfillment of the Requirements for obtaining the Degree

Signature by the Examining Committee:

Internal Examiner _____________________ Signature _____ Date ____________

External Examiner _____________________ Signature _____ Date ____________

Worku Mekonnen (PhD) __

Advisor Signature Date

Mr. Adem Kedir

I am grateful for all my respondents for providing me necessary and relevant

1.7. Organization of the Report ....................................................................................................... 9

2.2.1. HRM and Personnel Management (PM)....................................................................... 14

2.2.2. HRM in the Public Sector ................................................................................................ 17

2.4. Performance Appraisal............................................................................................................ 18

2.5. Employees Training and Development ................................................................................ 21

2.6. Rewards ..................................................................................................................................... 22

2.7. Decentralization ....................................................................................................................... 23

2.10. Public Personnel or the Civil Service Definition.............................................................. 25

2.11. The Public Sector and the Civil Service ............................................................................ 26

2.12. Preceding Research Works on Decentralization in Ethiopia ......................................... 27

3.2. Research Methodology ............................................................................................................ 38

4.2. Analysis of Response from Sector Bureaus .......................................................................... 56

4.3. Comparative Analysis ............................................................................................................. 65

5.2. Conclusion ................................................................................................................................ 72

Figure 2.1 Organization Structure of AACSA 34

ACR Annual Confidential Report

BOFED Bureau of Finance and Economic Development

BPR Business Process Reengineering

BSC Balanced Score Card

BOTID Bureau of Trade and Industry Development

CBB Capacity Building Bureau

CSA Civil Service Agency

CSRP Civil Service Reform Program

EPRDF Ethiopian Peoples’ Republic Democratic Front

FCSA Federal Civil Service Agency

HR Human Resources Management

HRD Human Resources Department

HRM Human Resources Management

MCS Ministry of Civil Service

NPM New Public Management

This research assumes that if an organization hires poor performers, it cannot be

In Ethiopia, depending on the government’s ideology the country’s policies and

1.2. Background of the Organization

Moreover, the agency conducts studies on salary scales to be applicable to civil

1.3. Statement of the Problem and Research Questions

As opposed to centralization, decentralization is often supported on the grounds that it

Similarly decentralized Human Resource Management (HRM) functions are of concern,

However, after the decentralization of HRM functions, critical problems were

1. Shortage of qualified manpower (including councilors) to effectively interpret

The above mentioned negative consequences of the hurried decentralization of HRM

It is well recognized that shortage of human resources, particularly professional experts

1.3.2. Research Questions

1.4. Objective and Significance of the Study

I) To study the link between decentralization and HRM practice in public

1.4.2. Significance of the Study

Internal Examiner ___________________ Signature _ Date __________

External Examiner ___________________ Signature _ Date __________