This project is designed to assess the perception of employees towards thernpractices and problems of performance evaluation in Awash International BankrnTo this end; the study has the objective to assess the perception of employeesrntowards the problems and practices of performance evaluation. On the basis ofrndata collected through questionnaires and interview which are founded on therntheoretical assessment of related literatures; I have tried to unearth some of thernreal problems of appraisals based on the opinion of the rates in that particularrnorganization.rnThe questionnaire was distributed to 80 employees of the bank working in fourrnbranches: Bole, Head office, Stadium and Arat Kilo branches in which only 65rnwere fully completed and returned. The questionnaire was distributed to thernemployees on the basis of convenience sampling based on the willingness andrncooperation of the respondents. The data collected were analyzed using SPSSrnsoftware.rnOn the basis of the data obtained from the respondents, the study identified thernlack of transparency both during the evaluation and after evaluation as itsrnmajor findings. Almost all the participants vented out that they are not allowedrnto see the result of their ratings. As a result, they do not have a confidence onrnthe appropriateness of the evaluation to make crucial human resource decisionsrnThe lack of clarity of performance evaluation criteria and the subjectivityrninvolved in the evaluation which resulted in role ambiguity and frustrationrnamong the employees were identified to be the other problem of performancernappraisal in Awash international bank (aib). On the other hand, the subjectivernnature of the standards against which the performance of employees are judgedrnlead raters to manipulate the evaluation for their own personal agendas.rnThe universal purpose of performance evolutions across the board were alsorncommon problems in the system. The performance evaluation forms do notrnreflect the performance of the employees as they can be irrelevant for some jobs.rnMoreover, through my research I have discovered that raters usually do notrncontinually record or document the performance of employees over thernevaluation period. In this regard, it was identified that raters evaluate thernperformance of employees on the basis of recent behaviors.rnBased on the findings of the study, I have forwarded some recommendations sornthat if they are used by the bank will give them an insight as to the practice andrnits associated problems of performance appraisal in the organization