Mohammed, Abdurazak (PhD)Asfaw, Meaza2018-10-162023-11-042018-10-162023-11-042017-06-25http://etd.aau.edu.et/handle/123456789/12785The purpose of this research was to investigate the effect of employee’s perception towards the Performance Appraisal on their job satisfaction in the Ethiopian Electric Utility. To achieve this target a quantitative research approach was adopted. Descriptive and explanatory research designs were employed to perform the analysis. To get the relevant data survey questionnaire was developed and distributed to 160 employees of EEU located at the head office. The data collected from the questionnaire were analyzed using statistical measures such as correlation and multiple regression analysis. The major findings of the study show that there are drawbacks in the performance appraisal practice of EEU. The appraisal results were not used to reward employees for their accomplishment; employees have also low job satisfaction level. There exist positive and significant relationship between job satisfaction and the communication, goal setting, feedback, evaluation process, performance based reward and recognition, and employee’s performance improvement variable. The finding also revealed that there exist higher relationships between the performance based reward and recognition dimension and job satisfaction. Finally the study recommends EEU to improve its performance appraisal practice and to enhance employee’s job satisfaction by rewarding their achievement. EEU should implement the performance appraisal properly by which employee’s job satisfaction will be increased. Based on the performance result highly performing employees should be rewarded and recognized. It is also recommended that the communications, feedback, goal setting, evaluation process, and employee’s performance improvement aspects of the performance appraisal has to be improved. This research can be used by HR managers to improve their performance appraisal; through it they can increase the satisfaction level of their employeesen-USPerformance Management SystemJob SatisfactionPerformance AppraisalThesis