This research was about performance appraisal system and their effect on employees' work performance satisfaction. The major purpose of the research was investigated the effect of performance appraisal system on employees' work performance of NTE share company employees and also their reactions towards the overall performance appraisal system depends on the distinctiveness, consistency, and consensus as well as its major factors such as fairness, employee-manager relationship, rewards linked to appraisal, specific accurate feedback, clearly defined goals, confidentiality and mutually set goals, towards the performance appraisal system. In conducting this study, the required data is obtained through closed ended structured questionnaires. The questionnaire was adopted and adapted from three prior related studies. To determine the sample from the total population of 520 employees, first, the target population was stratified in to four stratums and then to select respondents from each stratum simple random sampling technique was applied; having this, the researcher uses formula based-sample size determination.