Why Companies Should Have Performance Evaluations

Performance evaluation in an organization is an essential strategy given that it determines the growth of an employee and also gives the management a scope of how it can best improve the performance of its task force. One of the ways in which performance evaluations can be applied in real-life is through the use of performance appraisals. A performance appraisal involves a review process where the organization can evaluate the contribution of the employee to the company by assessing their achievements, skills, growth, or lack thereof (Bernardin, & Wiatrowski, 2013). Such a performance evaluation strategy enables the management to review employees at intervals such as monthly, annual, or biannually hence keeping a constant track on their performance. The appraisal process can, therefore, ensure that employees get a big picture of their performance and further ensure that it acts as a platform to increase incentives, rewards, or termination. It also provides a basis for employee development by identifying their strengths and building on them. 

One crucial value that comes with the performance evaluation strategy is that they have a motivational value per se. The reinforcement theory illustrates that an individual's behavior can be altered using reinforcement. BF Skinner further intimated that consequences mainly influence the behavior of an individual. Some of the examples of reinforcements highlighted in the theory include positive, negative, punishment, and extinction reinforcements. The type of reinforcement that majorly correlates with performance evaluation is positive reinforcements (Petri, & Govern, 2012). It involves giving a positive effect when a person depicts a required behavior. Job evaluations highlight the need for improvement by giving them a clear understanding of their performance. As such, they will have an increased impetus to make improvements. Continuous recognition of the employee is enough incentive to guarantee improved performance in the future. Finally, evaluations also build a sense of personal value and further enhance personal development. 

Reference 

Bernardin, H. J., & Wiatrowski, M. (2013). Performance Appraisal. Psychology and Policing ,  257 . 

Petri, H. L., & Govern, J. M. (2012).  Motivation: Theory, research, and application . Cengage Learning.