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Purpose of Performance Evaluation

  • Making general human resource decisions.
    • Promotions, transfers, and terminations


  • Identifying training and development needs.
    • Employee skills and competencies


  • Validating selection and development programs.
    • Employee performance compared to selection evaluation and anticipated performance results of participation in training.


  • Providing feedback to employees.
    • The organization’s view of their current performance


  • Supplying the basis for rewards allocation decisions.
    • Merit pay increases and other rewards


  • If employees are to be motivated to perform, then:
    • Performance objectives must be clear.
    • Performance criteria must be related to the job.
    • Performance must be accurately evaluated.
    • Performance must be properly rewarded.

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