The process of evaluating employee performance is sometimes also called as performance appraisal or performance review. However, the purpose of all these reviews and surveys is the same – to evaluate work performance of the employees. The aspects which are evaluated in this process are related to the work quality, attendance, skill development, results produced etc. The evaluation is generally performed by either the supervisor or the manager of the employee.

Most of the companies believe that employee performance evaluations are only required to analyze if a particular employee is meeting the work standards established in a company or not. In fact, it is more useful than that. These evaluations help the employers to know the worthiness of a particular employee and how well he is contributing to the growth of the company. In case the results of the employee performance evaluations are lower than expected then the management can make provisions to train the employees and develop particular skills in which they are lacking. If an employee is meeting the set work standards of the company, then it can help the management to provide appraisals to such deserving employees.

Using these evaluations in a constructive way can prove immensely beneficial for the growth of a company. It is important to remember that the employees are the backbone of an organization and by developing their skills and knowledge; you are improving the growth prospects of your business as well.