It is widely accepted that health systems are not producing the desired output of health interventions due to factors such as insufficient skilled and experienced health personnel, health personnel that lack motivation, lack of management skills, poor working conditions and environment, and inadequate remuneration. This study explores the factors that positively as well as negatively affect performance of nurses who are working in hospitals and Health centers administrated by Addis Ababa Health Bureau with the endeavor of providing a recommendation for improving the performance of nurses. The study followed a quantitative research approach using an explorative descriptive design. A survey method using questionnaires was applied. The study revealed that hospitals and health centers administrated by Addis Ababa health Bureau have major deficiencies in human resource management aspects. These aspects are strongly associated with level of performance of health personnel. Based on the results, recommendations were proposed.