The aim of the study is to examine the effects of performance appraisal (rater accuracy, feedback, goal setting, recognition and employees perception) on employee’s performance in case of Shindy town public offices. To undertake these general objectives; five specific objectives with their underlying hypothesis were designed and examined by explanatory research design with a cross-sectional survey method. In conducting this study, the required data was obtained through structured questionnaires. The structured questionnaire was based on four previous related studies. Factor analysis was applied to conduct dimension reduction. To check the reliability and validity of the adopted instrument Cronbach’s coefficient alpha was tested. A stratified sample of 160 employees was taken from a total population of 267. A total of 160 questionnaires were distributed to the sampled employees, and all of them were returned and analyzed using a statistical package for social science (SPSS version 23). In the analysis descriptive statistics, correlation, and multiple linear regressions analysis were applied. The descriptive finding of the study shows that in shindy Town public service offices; the independent variables of performance appraisal (rater accuracy, providing feedback, using goal setting, providing recognition and perception of employees) have a low level of acceptance by employees as factors affecting their performance. Majority of respondents disagreed about practiced of variables. The descriptive analysis also shows that employees had low level of work performance. The correlation analysis result indicates all independent variables of performance appraisal (rater accuracy, providing feedback, using goal setting, providing recognition and perception of employees) have a positive, significant, and moderate relationship with employees’ performance. Whereas the finding of regression analysis indicates that performance appraisal (rater accuracy, providing feedback, using goal setting, providing recognition and perception of employees) had positive and significant effects on employee performance. Therefore the researcher recommended that raters conduct PA based on the actual performance of employees. Provide on-time and fair feedbacks regularly, use clear and understandable goals and use recognition system to motivate employees and use functional appeal process.