Dissertation (MA Public Administration)The study was conducted in Dodoma region where by Dodoma Municipality is selected as the study area. The study focuses on the role of human resource management in promoting institution efficiency. The main objective of the study is to assess the role of HRM in promoting institutional efficiency. Specifically this study intends to examine how HRM promotes institutional efficiency, to assess the contribution of HRM in ensuring institutional efficiency and lastly to examine the challenges facing HRM in promoting efficiency. A sample of 60 respondents was used and the methods used in data collection are interviews, questionnaire and documentary review. The statistical package for social science (SPSS) was used for management of data and analysis. In this study the theories pertaining to HRM was established to acquaint the reader with patterns, frameworks and approaches in the field of human resource management. The study reveals that despite the experiences from within and outside the continent, Tanzania public sectors have been facing a number of challenges, which has reduced the speed of the reform process. For instance, institutional capacity, budgetary deficits exist and the performance of public services has not improved owing to factors such as the politicization of the civil service, coupled with corruption and lack of accountability, which undermine not only professionalism but also competence, is lacking or simply inadequate in many sectors. The lack of transparency in the management of national affairs, coupled with inappropriate information technology, slows down the flow of information and, hence, the ability of stakeholders to participate in policy formulation and decision-making. The study recommends that in order to improve public sectors the government should strengthen New Public Management (NPM), which includes, Performance-Oriented Civil Service, Total Quality Management, Decentralization, Pay Reform, Commercialization and Customer- Driven Government; Performance contracting and commercialization techniques.