Here are responses to the questions: 1. Performance evaluations are required by law in some circumstances. The Fair Labor Standards Act requires employers to keep records of wages and hours worked. Performance evaluations could help document job duties and qualifications for exempt status or pay raises. Some states also have laws regarding performance reviews. 2. Managers should receive special training on properly using the performance appraisal system. The training should cover how to objectively rate employees, provide constructive feedback, set goals, and ensure evaluations are consistent, fair and unbiased. Managers may be incorrectly applying the system or showing favoritism without proper guidance. 3. To hold managers accountable, their own performance evaluations and bonuses could incorporate metrics on properly conducting employee reviews