This study aims to evaluation of lecturer performance appraisal system based on the level of interest and the level of students understanding in the process of studying toward indicators of lecturers teaching performance (study on universitas muhammadiyah yogyakarta),the objects are lecture performance on teaching indicators and system of employee assessment perormance at Universitas Muhammadiyah yogyakarta. In this study subjects are all of undergraduate and diploma students in Faculty and responsible person of perormance assessment system at UMY. This study using descriptive research with analyze tool used is mean, median and modus. Based on study that have been made is result description system of performance assessment with The book of guidelines for performance assessment and SKP system showed that the differences is enough significant form content and method uses. Indicators of performance assessment and lecture teaching in class have a high enought in importance level high enough in understanding level for student