To have a constant idea of the performance of their employees, many companies now encourage well documented 360 employee evaluations so that there is less chance of dissatisfaction or doubt among employees and there is no bias or favorability kept in the account. Organized employee evaluation is merit based and only performance is measured so that the employees are classified according to their performance for the company.

Many institutions adopt this method so that no chance of bias remains. Not only private companies but also government organizations, like the armed forces, have wider use of employee evaluation. Non-profit organizations again need employee evaluation just as much as any other firm because for a NOP the internal affairs have to be spot-on to ensure maximizing their effectiveness.

It is important for a company to maintain good relations with the employees, as well as ensure good quality of work done by them. This has to be balanced for a smooth running company. Employee evaluations are used almost in every field nowadays, because there is more need than ever for the smart utilization of the resources that a company possesses. Performance appraisals can have a very positive effect on the company as a whole because it uplifts the development of the company, as well as developing the people who work in the company. Employee evaluation is an important facet of any company’s success.