Performance management and performance appraisal are now issues of crucial concern in higherrneducation owing to factors like increased numbers of students and increasing overall expenditures.rnEmpirical evidence suggests that the implementation of performance appraisal systems inrnacademic institutions often result in tension between academic employees and management. Thernpresent study assessed the perception of academic staffs regarding the implementation ofrnperformance appraisal system in Ethiopian public universities with special reference to thernEthiopian Civil Service University (ECSU) and Kotebe Metropolitan University (KMU). The studyrnused survey research design, using both quantitative and qualitative research approach. Thernquantitative data were collected from academic staffs and the qualitative data was collected fromrndepartment heads. The total sample of the study comprised of 106 academic staffs. The data werernanalysed using descriptive statistics. The findings showed that PA results were used to providerninformation about administrative decisions and performance appraisal criteria have been clearlyrnidentified. However, the subjectivity of the performance evaluation criteria, biasedness of thernappraisers and limited commitment to provide feedback were the challenges of PA practices in thernstudy area. Therefore, the findings have managerial implications for training, motivation andrnprovision of resources for effective performance appraisal. ECSU and KMU should make thernacademic staff participate in preparation of PE criteria to minimize the subjectivity and providernPA result feedback to academic staffs on time; this benefits the students, the university, and thernacademic staffs; since if the academic staffs know their performance where they are, they willrnstrive to improve their performancernKey Words: Performance Appraisal, Performance Evaluation, Academic staffs, PerformancernAppraisal System, Performance Appraisal Result