International Journal of Research in Economics and Social Sciences (IJRESS) Available online at: http://euroasiapub.org Vol. 8 Issue 2, February - 2019 ISSN(o): 2249-7382 | Impact Factor: 6.939 | International Journal of Research in Economics & Social Sciences Email:- editorijrim@gmail.com, http://www.euroasiapub.org (An open access scholarly, peer-reviewed, interdisciplinary, monthly, and fully refereed journal.) 5 Performance Appraisal Practice: The Case of Civil Service Sector in Benishangul Gumuz Regional State, Ethiopia Tizazu Kassa Melese* Research Scholar at Andhra University, Department of Commerce and Management Studies, Visakhapatnam, Prof. P. Viswanadham** *Senior Professor at Andhra University, Department of Commerce and Management Studies, Visakhapatnam Abstract This research was conducted to assess performance appraisal practice in civil service sector bureaus of Benishangul Gumuz Regional State (BGRS), Ethiopia. Performance appraisal is a process by which managers evaluate subordinates’ performance over a certain period of time. The population of this study was1796 employees or civil servants working in civil service sector bureaus in BGRS. 11 bureaus were selected from the total of 35 bureaus and also 304 civil servants were selected among the whole population of 1796 in the bureaus. Stratified sampling technique was used to select the bureaus and simple random sampling method was used to select respondents. In this study both primary and secondary data were used. The data were analyzed using SPSS version 20. The findings of this study revealed that, the performance appraisal practice was found to be weak in the civil service sector bureaus in BGRS. Furthermore, the results of this study indicated that, there is significant difference in the employee’s perception of performance appraisal practice across bureaus and sectors. Finally, based on the findings of the study, the researcher forwards recommendations to the management of the civil service sector bureaus in BGRS. Introduction Performance appraisal is a vital component of a broader set of human resource practices which it is the mechanism for evaluating the extent to which each employee’s day to day performance is linked to the goals that establishes by an organization (Coutts & Schneider, 2004). Performance appraisal is defined as the process of measuring and evaluating employees’ performance through information collection of individual job performance data within the company (Noe, et al. 2010). Moreover, performance appraisal is the systematic description of individual job relevant strength and weakness for the purpose of making a decision about the individual (Ahmad & Bujang, 2013). Employees’ performance is determined by a number of factors like managerial standards, knowledge skill, and commitment and performance appraisals. Armstrong (2009) stated that employee performance evaluation criteria should be balanced between: achievements in relation to objectives; the level of knowledge and skills possessed and applied (competences or technical competencies); behavior in the job as it affects performance (competencies); the degree to which behavior upholds the core values of the organization; day to day effectiveness. Appropriate and fair practice of performance appraisal can bring motivation, employee behavior and attitude development, align individual goals with organizational goals and this will bring positive relationship between employee and management. Performance appraisal is not just about rating employees, Meenakshi (2012) identified that organizations carry out performance appraisal as a basis for administrative decisions such as promotion, allocation of financial rewards, employee development and identification of training needs. According to Armstrong (2006) the purpose of performance appraisal is to help and encourage everyone to raise their performance, develop their abilities, increase job satisfaction and achieve their full potential to the benefit of the individual and the organization as a whole. Besides, Khan (2007) stated that the fundamental objective of performance appraisal is to