The main purpose of this research is to examine the challenges of BSC implementing inrnperformance appraisal on Enterprise Division in ethio-telecom. The data were collected using arnquestionnaire and semi-structured interview question from a sample population in EnterprisernDivision. From the total of 170 target population, this research selected 119 samples andrncollected data after that analyzed by using SPSS version 20 for the close-ended question. Thenrnthe data presented using descriptive statistics with the help of frequency, tables, and percentagernto provide information. Mean and Standard Deviation through a measure of central tendencyrnwas also used to analyze data. The data that were collected by semi-structured interviewrnquestions and open-ended questions, interpreted manually. The result shows that the majorrnchallenges of BSC implementation in performance appraisal were, even if the staff discussedrnperformance appraisal with their supervisors most of the time their idea is not acceptable. Thisrnleads to a disagreement between the staff and the supervisors. Most of the staffs are not satisfiedrnby BSC implementation and the respondents state different reasons for this like BSC most of therntime focused on countable factors, does not consider the weakness of the company rather focusrnonly employees side, when the plan given it is not equally distributed between divisions thisrncreates bias and the parameter (criteria) does not consider the working environment. Thernavailability of enough resource take the highest share to achieve any target but the findingrnclearly indicated that there is no enough resource available to achieve the target. Performancernprogress is not monitored continuously before formal evaluation made this leads not to know thernperformance continuously. Therefore, future researchers may conduct for further relatedrnresearch work that covers a wider scope and larger sample size appears to be significant