The aim of this exploratory research is to see the practices and challenges of "Position Classification and Compensation Management" during recruitment and promotion The objective of this study is to assess practice and challenges of position classification and compensation management during recruitment and promotion in Addis Ababa Civil Service Agency, Bole and Kolfe-Keranyo Sub-cities. The researcher used simple random technique to collect the required information and the sample size was

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... e one hundred in number. Out of this total forty five were managers from different departments who work in Addis Ababa Civil Service Agency and the rest fifty five were from employees who work in respective institutions. After the researcher got the required data the problem were diagnosed in the analysis. In presenting the given problem the researcher used different tools like tables and percentages to present the result. On the basis of data analysis the following conclusions have been made:- - All employees and managers are not apply about the existing mandates this leads to corruption. - The given problems cannot be solved by the existing proclamations and laws that are not practicable. - The requirement of training in those government institutions. - Different employees retention schemes have to be developed. Finally, the researcher give some sort of recommendations; compensations and job classifications are heart beat of human resource management have to be give very serious attention ; up to date e compensa ation packag ges, giving effective tra aining and c creation of good working environment around those institutions