What is the process of evaluating employee performance called?

Prepare for the IGCSE Business Studies Section 2 – People in Business exam. Study with multiple choice questions and flashcards, complete with hints and explanations. Ace your exam with confidence!

Multiple Choice

What is the process of evaluating employee performance called?

Explanation:
Evaluating how well an employee performs their job is called an appraisal. A performance appraisal is a formal review where a manager assesses the employee against agreed criteria such as quality and quantity of work, reliability, teamwork, and attendance. The aim is to provide feedback, set future targets, identify training needs, and inform decisions about pay, promotions, or development. This differs from fringe benefits, which are extra perks like health insurance or a company car; job satisfaction, which is about how happy employees feel with their job; and job rotation, which involves moving workers between different tasks to broaden skills rather than assessing performance.

Evaluating how well an employee performs their job is called an appraisal. A performance appraisal is a formal review where a manager assesses the employee against agreed criteria such as quality and quantity of work, reliability, teamwork, and attendance. The aim is to provide feedback, set future targets, identify training needs, and inform decisions about pay, promotions, or development. This differs from fringe benefits, which are extra perks like health insurance or a company car; job satisfaction, which is about how happy employees feel with their job; and job rotation, which involves moving workers between different tasks to broaden skills rather than assessing performance.

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