Employee Assessment

Performance Evaluation Systems

Learning Objectives

1. Define the reasons for a formal performance evaluation system.
2. Explain the process to develop a performance review system.

A performance evaluation system is a systematic way to examine how well an employee is performing in his or her job. If you notice, the word systematic implies the performance evaluation process should be a planned system that allows feedback to be given in a formal - as opposed to informal - sense. Performance evaluations can also be called performance appraisals, performance assessments, or employee appraisals.

There are four reasons why a systematic performance evaluation system should be implemented. First, the evaluation process should encourage positive performance and behavior. Second, it is a way to satisfy employee curiosity as to how well they are performing in their job. It can also be used as a tool to develop employees. Lastly, it can provide a basis for pay raises, promotions, and legal disciplinary actions.

Source: University of Minnesota, https://open.lib.umn.edu/humanresourcemanagement/chapter/11-1-performance-evaluation-systems/
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