Zegeye Muluye (PhD)Biniam Haile2025-02-282025-02-282024-09https://etd.aau.edu.et/handle/123456789/4419This study examined the influence of Human Resource Management Practices on Employee Performance in FH Ethiopia. The objectives of the study were to examine the relationship that recruitment and selection practices, training and development initiatives, performance management system, compensation and benefit structure and lastly exploring employee engagement strategies adopted by FH Ethiopia. The study adopted a quantitative and qualitative research method used to collect and analyze using questionnaire. The study found out that the HR practices has positive contribution on the employee’s performance but there were gaps observed per the perspectives reflected by selected respondents. This informs the management to critically look in to the policies and procedures, potential learnings. Thus, the research confirms the hypothesis which all the influence independent variables have on employee performance. It was discovered that HR practices at FH Ethiopia are facing challenges due to an influence of the donor interest and decision power they have over the resources which highly impacting strategic directions on the HR developments specially on the human resources development. The study therefore recommends FH Ethiopia to have a clear recruitment and selection, training and development, performance management system, compensation and benefits, and employee engagement and motivation policy to achieve and improve the employee performance and share lessons to the NGO sector as well. Key Words: Influence of HRM Practices, donor interest and ecision power, strategic direction and NGO sectoren-USThesis