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The Importance of Performance Evaluations

By Christine V. Bonavita
February 19, 2009

It is that time of year when many managers are either presented with the daunting and time-consuming task of completing performance appraisals or have just finished their appraisals and are waiting to communicate the results to the employees. In either situation, the process is usually coupled with questions from managers as to why evaluations are necessary. Employees often wonder themselves.

Using an Appraisal Properly

Employee performance appraisals are an important tool in any organization if used properly. For instance, evaluations may be used to:

  • assess an employee's strengths and weaknesses;
  • provide feedback on recent performance;
  • establish employee expectations;
  • assess performance over time;
  • set future performance goals and objectives;
  • provide a basis for promotion, training and professional development;
  • justify compensation or disciplinary decisions; and
  • select personnel for a reduction-in-force.

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