The purpose of this study was to assess problems associated with teachers'rnperformance appraisal system operating in high schools in Western Wollegarnzone. To this effect, descriptive survey method of research was used. Thernstudy was conducted in 8 government high schools selected on the basis ofrnrandom sampling techniques. The subjects of the investigation were 8rnprincipals and 72 teachers drawn from the sample schools. Therninformation's were gathered through a survey questionnaire and analysedrnusing mean score and percentage. Thus the findings of the study proved thatrnformative purposes were the principal purposes the criteria were found to berninadequate and inappropriate; incompetent appraisers were assigned to judgernteachers' performance; and inadequate information's were used. Moreover,rnTeachers' performance appraisal system was not revised in the past fivernyears. In sum, the present teachers' performance appraisal system wasrnconsidered as ineffective to achieve its goal. Therefore, it is suggested thatrnteachers' performance appraisal system ought to be revised and designed inrnsuch a way that it will meaningfully involve stakeholders.