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Horngren'S Financial And Managerial Accounting
Found in: Page 1355

Short Answer

What is a performance evaluation system?

A performance evaluation system is systematic performance evaluation of an employees’ job.

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Step by Step Solution

Meaning of performance evaluation system

The performance assessment system provides a foundation for retaining control over the entire business for senior management.

Explaining the performance evaluation system

Evaluating an employee's execution includes looking at how well they are carrying out their obligations and progressing corporate objectives. To assess execution legitimately, a manager must be mindful of the exact necessities for a position, keep an eye on the employee's activities and yield, compare them to the requirements, and evaluate how closely the watched conduct and yield fit the requirements.

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