This assignment on managing employee performance aims to understand the lacuna in the existing performance appraisal used by Matrix and implement a new one to improve the performance of the staffs and revenue of the company. In the process the company also conducted the training need analysis to bridge the gap between actual performance and set performance of the employees. Further various motivational theories are compared and contrasted to evaluate how performance appraisal process gets influenced by the motivation of the staff and the correlation between motivation and ability to perform is also identified. Finally strategies are identified to improve individual performance at Matrix and reduce negative reaction to performance appraisal process.