Nowadays, when every modern Government has accepted the "new public management" philosophy, the performance of the public administration is being measured by the achieved effects (outputs), rather than by the spent resources (inputs). Hence, it becomes bigger the need of developing a performance oriented organizational culture. The most common tool for developing such culture is the performance appraisal, as an instrument of the total quality management and the core strategy of the strategic HRM. Because of that, the aim of the research is determining the level of success in implementation of the performance appraisal process in Republic of Macedonia, measured not only through the statistical indicators, but also through the commitment of the implementers, as indicator of the quality of the process. The problem is explained in light of the performance appraisal system's design i.e. the level of civil servants' satisfaction with it and its motivational potential (empirical analysis). It is supplemented with the comparative - descriptive analysis, which examines the level of compatibility between the normative posture of the PAS in Macedonia and the international "good practices".