This study attempted to examine the effects of performance appraisal on employees moral and satisfaction in Jinka town civil service office. The specific objectives of the study were to point out the current performance of employees, performance appraisal problems and to examine the effects of performance standards contribute to shape employees moral and satisfaction. Data for this study were collected from sample employees. So, from the total of 76 employees the researcher was used 39 (56%) through simple random sampling techniques. The study employed quantitative data like questionnaire as it is the major source of information even through there were some qualitative data obtained from sample employees. The result of the study revealed that evaluating employee’s by their past contribution affects employees moral and satisfaction negatively and also pay cut is not the measure to improve performance since it demoralize employees moral and satisfaction. The study also indicated that team appraisal system affect employee’s moral and satisfaction negatively. Generally, the research recommended that, employees must be evaluated by current performance and pay cut is not advisable for this organization since the majority of respondents were strongly disagree.