The Performance Appraisal System (PAS) plays a key role in the overall success of an organization. An appropriate PAS has the potential to increase employee satisfaction at work. When employees are satisfied with the PAS they tend to be more satisfied with their jobs. This study aims to demonstrate the level of practices and the characteristics of the Performance Appraisal System, characterize the level of employee satisfaction in the workplace, and understand the relationship between the PAS and employee's Job Satisfaction in Palestine's Higher Education Institutions. This research will have a significant impact on advocating to the Ministry of Higher Education to encourage all higher education institutions to develop a uniquely tailored appraisal performance model that meets their specific needs. Also, the study is expected to contribute to the development of higher education institutions by paving the way for improved services to students and society at large. Furthermore, the study identified several key factors that contribute to a successful appraisal system in the Palestinian context. The study involved 370 employees selected through convenience sampling in Palestinian higher education institutions. Employing a quantitative approach, the research utilized descriptive statistics, non-parametric tests, and multiple linear regression for analysis. The data were processed using the Statistical Package for the Social Sciences (SPSS). The findings demonstrated a statistically significant relationship between Performance Appraisal System (PAS) traits--precisely, clarity, trust, two-way communication, and fairness--and employee job satisfaction. Clarity, trust, and fairness positively correlated with job satisfaction, whereas two-way communication showed a statistically significant negative relationship. Additionally, the study identified substantial gender-based disparities in job satisfaction among the participants. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]