Appraisal Criteria is the procedure of formative which records is to be retained as archives and which will be destroyed. Once the commercial and technical aspects of a project idea have been evaluated and approved, the project manager must examine the financial feasibility of the project. The project manager uses two criteria to evaluate the rate of returns on project investments: non-discounting criteria and discounting criteria. The time value of money is ignored when non-discounting criteria are used, but it is taken into consideration when discounting criteria are employed. First, the criteria are the aspects the employee is really being evaluated on, which should be tied straight to the employee’s job account. Second, the rating is the type of scale that will be used to rate each condition in a performance appraisal: for example, a scale of 1–5, essay ratings, or yes/no ratings.
The important methods used under the non-discounting criteria are the average rate of return, payback period, and urgency method. Net present value, internal rate of return, and benefit-cost ratio are important methods used under the discounting criteria. There are a number of criteria which can be used to appraise the performance of different classes of employees in an organization. Some of the important criteria are as follows: (1) Production, (2) Work-Sample Tests, (3) Length of Service, (4) Training and (5) Ratings of Supervisors.