ABSTRACT The purpose of this study was to determine the impact of performance appraisals on employee performance. The specific objectives of the study were to determine the methods used in performance appraisals, Investigate the factors affecting employee performance and the effect of performance appraisal on employee performance. The methods used for data collection was questionnaires for the nonsupervisory staff. Based on the findings it was observed that employees were rated according to their initiative capabilities, communication capability, customer relations, efficiency and punctuality and attendance of work. The major factors that could counter employee performance are lack of good equipment and insufficient funds. Most of the respondents agreed that performance appraisal in the company is not meeting its intended purpose of improving employee performance but could do so if it is done properly and taken seriously. In chapter five, development of solutions to the problem, summary of the findings and conclusions were attempted. The study recommended that the objective of appraisal should be made clear to all employees before appraisal takes place and employees should accept it. Employees should participate in the designing of the appraisal system and criteria. Besides, employees should be given training that lets them know how to conduct evaluation and the purpose of evaluation. This because most of the employees did not know the objective and criteria used in evaluating their performance.