Sanjay, the branch manager, is dissatisfied with his performance evaluation during 1965. He has doubts about the soundness of the appraisal system where five different functionaries at the head office evaluate performance. Each functionary evaluates the manager's performance with respect to the work (deposits, advances, public relations, inspection, follow-ups, etc.) for which the manager is responsible to him. The evaluation is not done as an integral part of the overall management control system nor has the head office laid down well-defined and agreedupon criteria for evaluation. The appraisal system is basically used for salary administration. The case provides an opportunity to discuss 1) the objectives of an appraisal system, 2) criteria of evaluation, 3) setting standards of performance, 4) measurement of performance, and 5) who evaluates who, and how.