STEP 1

• Determine the reason for evaluating employee performance
• 1. Providing Employee Training and Feedback – the most important use of performance evaluation
• Semiannual performance appraisal review is an excellent time to meet with employees
• 2. Determining Salary Increases – provide fair basis on which to determine an employee’s salary increase
• 3. Making Promotion Decisions – Promoting the best or most senior employee often results to Peter Principle
• Peter principle - states that a person who is competent at their job will earn a promotion to a position that requires different skills. 
• 4. Making Termination Decision
• 5. Conducting Personnel Research – to do this, an accurate and reliable measure of job performance