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Performance evaluations are essential for managers to make informed human resource decisions. They help identify employees' training and development needs and provide feedback regarding performance, often influencing reward allocations like merit pay increases. The criteria chosen for evaluation significantly impact employee behavior, with the three most common sets being individual task outcomes, behaviors, and traits. Management should focus on evaluating outcomes, such as production quantity and sales volumes, rather than just traits like attitude or dependability, as the latter may not strongly correlate with successful task outcomes. Traditionally, managers are responsible for these evaluations due to their accountability for overall outcomes.
