Formal performance appraisal (PA) is one of the most important human resource management practices in organisations. It is worth noting that extensive frustration and dissatisfaction with performance appraisal have challenged practitioners and researchers to appraise the efficiency of performance appraisal quality. In this paper, we focus on the reaction of employees to these performance assessments. In particular, we examine the performance appraisal process and tools used in basic schools, examine the perception of teachers regarding performance appraisal systems (PAS) and identified the challenges (barriers) of performance appraisal in Ghana Education Service (GES).Respondents sampled for the study were drawn from teaching staff of basic schools in the HoMunicipality made up of 200 teachers from 10 schools. Concerning the process of Appraisal, there was an indication that at the basic schools performance criteria do not take into consideration the opinion of staff. On the challenges to appraisal process in the sector, respondents identified certain factors as challenges to an effective appraisal process. These included the unavailability of the needed resources to enhance the appraisal process, insufficient funding and failure by authorities to act upon results.