There are the changes in higher education that are occurring in higher education, will fundamentally alter the nature of the university. The changes in higher education, basically, are an impact of the limited financial support from government and the need for accountability from the university to the public. The implementation of performance appraisal for academic staff is an example of the type accountability the faculty has to its stakeholders. In the research findings there is evidence that academic staff performance appraisal implementation requires the faculty, as an educational organization, to be managed and led in the same way a business organization is operated. It needs broad, deep and complex change in the faculty''s management, leadership, rules and system, financial support, commitment from stakeholders, roles, academic staff roles, communication system and culture. These changes will require the colleges and universities to restructure their management processes and modify their traditional notions about academic leadership.
