Performance is thus about the way the task is accomplished and the results achievedrn(outputs). The way inputs (resources) are utilized and the extent to which outputs (results) arernachieved at institutional level designates organizational performance, which therefore, is bestrnexplained in what and how an employee in the structure is expected to get tasks geared andrnaccomplished towards the organizational goals. The pattern a task is accomplished and thernresults achieved thereby flows through and within different interacting and interrelated setsrnof activities that constitute a system i.e. performance system. The contemporary period ofrnincreasing global competition has put more focus on effectiveness that the systems andrnprocesses in the organization be applied in the right way to the right thing:rnPerformance management is of performance improvement process linked to performancernappraisal.rnIn effective organizations, goals are agreed and work is planned routinely,rnprogress is measured and feedback is communicated. And this study draws on effectivenessrnin appraising the performance of employees for a continuous improvement of organizationalrnperformance in the Ethiopian Radio and Television Agency (ERTA). It focuses on howrneffective is performance appraisal in improving the performance of employees in ERTA andrnin achieving strategic and operational goals.rnThe methods of participant observation and Likert-type questionnaires are the preferredrnmethods to collect data from primary sources, and the required data regarding factors thatrncontribute to effectiveness of the performance appraisal system are obtained. Accordingly,rnthat indicates that the system in the agency is ineffectively implemented