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Describe at least 4 reasons a company would use a performance evaluation system.
Solution
1. Base the performance appraisal on an analysis of the job. 2. De?ne your
performance dimensions in behavioral terms and support assessments with observable, objective
evidence. 3. Keep things simple. 4. Monitor and audit for discrimination. 5. Train raters to
assess performance accurately and to conduct effective appraisal discussions. 6. Provide for
upper-management review before the appraisal is reviewed with the individual. 7. Provide some
appeal mechanism.

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