Along with job descriptions, most companies have performance appraisal systems. Performance appraisals are used for several reasons in organizations:
- As a needs assessment tool in training and development;
- To develop a compensation system which is fair and so perceived;
- To develop a promotion and transfer system which makes the correct decisions related to skills and abilities; and
- To make well founded decisions concerning terminations and workforce reductions that are based on solid performance criteria.
If you decide to implement a performance evaluation system, the cost will be $1,800. Performance appraisal instructions and two performance appraisal formats will be completed. One form will be for managers/supervisory/specialized positions and one form will be a general performance appraisal (generally for non-exempt, hourly positions). If you need assistance beyond the instructions, the cost of training supervisory employees to use the evaluation system will depend upon the number and length of training sessions needed and will be on an hourly basis.