Dissertation (MA Business Administration)This study assessed the impact of performance appraisal systems on performance in public institutions in Tanzania. Particularly the study aimed at determining the extent to which the appraisal process and the results of performance appraisal yield the expected results that have impact on Performance in Public institutions, taking LAPF Pensions Fund as a case study. The study employed an explanatory case study research and cross-sectional survey design. The methods used in data collection were interviews, questionnaires and documentary review. A total number of 30 respondents were involved in the study. Data analysis was done through SPSS. Key findings of the study unveiled that OPRAS is the performance appraisal system practiced at LAPF. The study revealed that employees’ performance feedbacks (results) were useful in deciding employees ‘promotions, employees’ confirmation, termination and demotions. Contrary, findings indicate that employees’ performance results were not useful in determining employees’ training, transfers and on setting goals and reinforcing desired performance. Moreover the study raised a number of challenges encountering; these include; setting of clear objectives, establishing clear performance standards, adequate preparation on part of managers, and poor ratings. Generally the study recommends full participation of management, supervisors and individual employees in the whole process which in turn will make OPRAS effective and beneficial to both the employers and employees.