Performance evaluation provides employees recognition or rewards for their efforts and thus boosts employee morale and increases their job satisfaction. And performance evaluation itself lets employees know they are important to the company when managers take the time and effort to review, document, and discuss performance with their employees. This can have a positive influence on the individual’s sense of worth, job satisfaction, and commitment. One study suggests that recognition can improve work performance and increase business value. (See http://www.cashort.com/Libraries/Employee_Recognition_Programs/Linking_Recognition_to_Performance.sflb.ashx )
