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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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