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A performance evaluation system is a systematic way to examine how well an employee is performing in his or her job. If you notice, the word systematic implies the performance evaluation process should be a planned system that allows feedback to be given in a formal—as opposed to informal—sense. There are some reasons why a systematic performance evaluation system should be implemented: Design of a performance evaluation system There are several things to consider before designing or reviewing an existing performance evaluation system. Some researchers suggest that the performance evaluation system is perhaps one of the most important parts of the organization (Lawrie, 1990). Suppose we can create a performance evaluation system that adds value to the organization and the employee. When designing this process, we must recognize that any process has its limitations, but if we plan it correctly, we can minimize some of them. The first step in the process is to det...