Employee Evaluation Of A Company 's Human Capital Essay

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The main objective of any company is to be successful. In order to be successful, the employees that have been entrusted with meeting the goals of the organization must be motivated. Management must understand and relay the importance of motivation by assessing their employees’ performance. Provide constructive feedback on their subordinates’ performance as well as rewarding those who have exceeded expectations and providing training to those who have underperformed. Investing resources into a company’s human capital can positively influence the quality of work that is performed, therefore increasing the firm’s competitive advantage (Lorenzat and Cook).
Most organizations today have an employee appraisal format that is used to rate the yearly job performance of each of their employees. This employee review process is vital to organizations to help guide and motivate their employees in order to meet the overall goals of the company. This process is used to give feedback to each employee on their performance as it relates to the expectations put forth in their position expectations. Employee evaluations are key components when deciding on promotions, demotions, pay increases, or employee terminations.
The management team is directly responsible for achieving organizational goals by motivating their employees, clearly stating company objectives, removing obstacles, and rewarding employee performance accordingly (Malik). According to the Expectancy Theory, employees are

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