This research was about performance appraisal system and their effect on employees’ jobrnsatisfaction. The major purpose of the research was investigated the effect of performancernappraisal system on job satisfaction of fana broadcasting corporate employees and also theirrnreactions towards the overall performance appraisal system as well as its major component partsrnsuch as standard setting, appraisal forms, feedback process, appeal procedure and overall feelingsrntowards the performance appraisal system. Data was obtained by a questionnaire from 186rnemployees in the head office of the corporation and also secondary data was obtained fromrnadministration manual of the corporation regarding the issue of performance appraisal system. Thernfindings of the study indicated that employees perceived the performance appraisal system as anrnunjust and a system which cannot correctly measure their performance and also the result of thernstudy shows that the performance appraisal system of the corporation has an effect on employees’rnjob satisfaction. Employees also indicated their dissatisfaction with performance rating forms usedrnby the corporation, and about explaining performance appraisal rating result decision. Thernparticipant of the research also indicated their relative satisfaction with feedback process ofrnperformance appraisal, procedure of appeal, their rater assurance, and standard setting of thernperformance appraisal process.