Performance management systems is always a big concern of any organization. An organizationrnshould manage its human resources effectively and efficiently by creating alignment between thernoverall strategic aims of the company with individual and team goals in order to overcome thernpresent and future challenges. The main purpose of this study is to assess employeesrnPerformance Management system of Ethio telecom. Particularly, the study tried to address thernbasic questions of how Ethio- Telecom creates understanding of its EPMS to its employees, tornwhat extent employees of Ethio- Telecom participate in the performance management process, tornwhat extent the performance management feedback communicate to employees in Ethio-Telecomrnand For what purpose Ethio- Telecom use the performance evaluation results. To achieve thisrnobjective, a review of relevant literature was done, and primary data was collected using arnLikert scale. questionnaire format administered to 122 respondents and data analysis was carriedrnout using descriptive analysis. Some findings also discovered such as: Ethio-Telecom has a goodrnculture in creating awareness on its mission, vision and objectives, Performance managementrnsystem is not fair and transparent, there is participation in performance management process butrnnot satisfactory specially in supervisory level, feedback is communicated to employees on thernstrength and weakness area which needs improvement but not on time, Senior managers havernlimited knowledge to carry out the performance evaluation and the organization used thernPerformance Management results more for administrative purpose than any other purposes. Thernstudy concluded to get positive result from the system there must be a well-planned, fair andrntransparent employee performance management system. The study also recommended thatrnemployee should participate in the organization goal and objectives setting process in order tornperform the task effectively and efficiently. And the company should provide a continuousrntraining program for management members to enable them effectively to carry out thernperformance Evaluation