Clearly, people are the lifeblood of any viable organization. In any country, including Ethiopia, sixty to seventy percent of the public health sector‘s budget goes to recurrent personnel costs. Given this cost, it is important for Ministries of Health to manage their investment in people wisely. The result is a satisfied and motivated workforce that delivers high-quality health services and an organization that fulfills its mission, meets its health objectives, and contributes to its community by providing excellent services. This not only contributes directly to the achievement of the organization‘s goals, it enhances its efficiency and effectiveness, and competitiveness.