characteristics of the teacher performance appraisal system and the school leader for procedural justice and perceived feedback utility by teachers. Methodology: Both interviews with school leaders and a questionnaire for teachers were used to collect our data in 32 schools. Path analyses (n=298) were used to test our research model. Findings: The results indicate that teacher participation in the teacher performance appraisal system significantly influences the perceived procedural justice by teachers which in its turn significantly influences the perceived feedback utility. The role of the school leaders is found to be extremely important. Charismatic leadership influences both directly and indirectly (through procedural justice) the perceived feedback utility by teachers. Originality: Our study contributes to the research field of (teacher) performance appraisal by studying empirically appraisal system characteristics and leadership characteristics that effect appraisal reactions. In this regard, this study responds to the need for more empirical research to uncover the social context of performance appraisal, especially in the field of education where there is a general skepticism towards teacher appraisal and its possible positive outcomes.System and leadership in performance appraisal 3