What are the objectives of performance evaluation?

1.To create and maintain a satisfactory level of performance./ 

2.To contribute to the employee growth and development through training, self and management development programmes. Tata Power aims at employee development through performance appraisal./ 

3.To help the superiors to have a proper understanding about their subordinates./ 

4.To guide the job changes with the help to continuous ranking./ 

5.To facilitate fair and equitable compensation based on performance./ 

6.To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks./ 

7.To prove information for making decisions regarding lay off, retrenchment etc as in the case of Hyundai Engineering.