Tesfaye, Atsede (PhD)Hibiste, Lekulu2021-01-212023-11-042021-01-212023-11-042020-06http://etd.aau.edu.et/handle/123456789/24746This research aimed to measure effect of performance appraisal on employees’ performance. The study used structured questionnaire to analyze the effect of performance appraisal on employee’s performance. Primary data was collected by own mainly from Bole Sub-City management bodies and employees by questioner and interview. The data were collected through structured questionnaires from Samples of 311 respondents were selected based on Simple random sampling technique. The effect was analyzed through correlation analysis. The results indicated that 360 degree performance appraisal methods significantly affect the employees’ performance. Performance appraisal had an impact on employees’ performance, thus, when appraisal is fairly done, employees tend to be motivated and it reflects in their work output. On the other side, when it’s poorly done employees become bitter and it affects their performance. Effective and fair performance appraisal process would enhance employees’ performance. This study recommends that performance appraisal should be used as a supporting tool for policy making. Employees should be ensured of transparency in appraisal process and it must be made sure that employees’ perceive appraisal process as a tool of workforce developmenten-USPerformance Appraisal processEmployees’ performance360 Degree AppraisalThesis