Abstract: | Performance appraisal is one of the most important tools in human resource management. Evaluating and documenting employee’s performance is very necessary both from human development side and strengthening the overall organization performance to this effect no matter how large or small in size organizations use a performance appraisal system. This study assessed and evaluated the performance appraisal practice of Ethiopian airlines especially the major components such as Setting performance expectation/goal, Rater knowledge, Appraisal content, Feedback, Accuracy and Fairness of rating, Explaining rating decision, Appeal Procedure and Purpose of PA, descriptive study of conclusive research design was used as a methodology to the research, data was obtained by questioners collected from 350 respondents in the head office. An interview was also conducted with 6 management stuffs including human resource managers and randomly selected 6 employees. The finding of the study indicated that respondents perceive the performance appraisal process lacks good implementation, thus expressing their dissatisfaction on the appraisal system. Respondents perceived that purpose of performance appraisal in motivating or developing employees was hardly in effect. Respondents indicated their relevant agreement with the content of the system and feedback process and appeal procedure of the performance appraisal system. |