The major purpose of this study was to assess the practice and problems of teachersâ€™ performancernappraisal in the Governmental secondary schools of Gulele sub-city of Addis Ababa CityrnAdministration. In order to achieve the objective of the study, descriptive survey method wasrnemployed. The study was conducted in four government secondary schools and one sub-cityrneducation office. The governmental secondary schools are few in number; so that the samplernpopulation of the study was obtained from all the four governmental secondary schools. Thernsecondary school teachers were selected by simple random sampling while principals, vice principalsrnand sub-city education department education experts were selected purposely. The study included 24rnadministrative staff (sub-city education experts, principals and vice principals), 101 teachers and 4rnPTSA members. Questionnaires and interview were used to collect data. The data gathered throughrnquestionnaires were analyzed using percentages, mean, standard deviation and an independentrnsample t-test. Based on the analysis the study portrayed that lack of validity and reliability ofrnperformance appraisal criteria, less participation of school supervisors (department heads and unitrnleaders) in performance appraisal process, lack of continuity of assessment throughout the year,rnmore emphasis on the administrative purposes than developmental and lack of training expertise ofrnappraisers were found to be the major factors that affect the teachersâ€™ performance appraisal in thernGovernmental secondary schools of Gulele sub-city. Hence, it is recommended that combining therncurrent criteria with trait-based criteria for better appraisal result and participate all concernedrnbodies by forming committee in PA process. It is also better to focus on developmental purposernrather than administrative and provide training for appraisers for the successful operation of PA ofrnteachers.