This study analyzed the implementation of a teacher performance appraisal process that encourages self-directed learning (SDL), highlighting the extent to which teacher efficacy (TE) influenced the its success. The study also examined whether lack of readiness for SDL was an implementation obstacle. Finally, it noted other barriers and obstacles to full implementation of a teacher performance appraisal policy in one Newfoundland school district. The researcher analyzed current literature dealing with teacher professional growth, teacher performance appraisal, TE, and SDL in an attempt to isolate barriers to full implementation of a teacher performance appraisal process that encourages SDL. The study analyzed the Newfoundland school district's implementation of a teacher performance appraisal policy using teacher and administrator surveys and interviews. Results highlighted several themes related to this process within the school district: rationale, implementation, barriers, responsibility, uniqueness, and growth realization. Teachers' levels of TE influenced their attitudes toward, and success in, this new process which encourages SDL. This influence, in turn, affected teachers' professional growth experiences in the process itself. Teachers believed that the most effective and meaningful teacher evaluations were self-directed. Barriers to implementation included time and teacher-administrator relationships. (Contains 54 references.) (SM)