This article discusses performance appraisal in an education system context. With teacher quality key to improving student performance, school education systems must consider the role of performance appraisal on both teacher and principal development and improvement. This article describes the perceptions of employees within a faith-based education system as to current and suggested improvements in performance appraisal processes. This study utilised a qualitative approach for research design, adopting semi-structured interviews to collect employee perceptions. The employees indicated mistrust in the present performance appraisal processes, noted inconsistent use of performance appraisal, identified a need for evaluator training, and suggested the use of both an internal and external person in the evaluation and development space. These faithbased education system employees indicated that a district wide approach to the performance appraisal process, with flexibility at the local school level, would be beneficial for both the respective schools and the education system.