Dissertation (MA Business Administration)The study aimed at investigating the relationship between employee‟s perceptions on performance appraisal system and employees‟ job motivation using Chamwino District Council (CDC) as a case study. The specific objectives were to find out the appraisal system used at CDC, to examine perceptions of employees on the appraisal system used at CDC, to assess employees‟ job motivation at CDC and to find out the relationship between employee‟s perceptions on the appraisal system and employees‟ job motivation. 100 respondents were involved whereby, 4 key informants were interviewed and 96 respondents filled the questionnaire. Data were analysed by using both qualitative and quantitative means. The study found out that, Open Performance Review and Appraisal System (OPRAS) was the system used for appraisal of employees. On OPRAS playing its duties as supposed, majority of the respondents had negative perceptions which mean OPRAS at CDC was not doing well enough. On employee motivation, majority of the respondents were demotivated. The relationship between perceptions of employees, on the performance appraisal system and employees‟ motivation is positive and significant. It is recommended that, managers should pay attention to perceptions of employees on performance appraisal system because they affect employees‟ job motivation.