216 Human Resources Management for Public and Nonprofi t Organizations
and nonprofit agencies. The information gleaned from an effective
evaluation system can be used to assist agencies in accomplishing their
missions. The performance evaluation process also provides feedback to
the agency about whether the other human resources management (HRM)
functions are working in concert to execute the agency ’ s mission.
Employees are motivated by many factors. An employee ’ s performance
is often determined by the level and interaction of ability and motivation,
that is, the desire within a person to act in a particular way. Employees
are motivated by both intrinsic and extrinsic rewards. Intrinsic rewards are
part of the job itself, such as having challenging job tasks, learning
new skills, developing additional job knowledge, and assuming increased
levels of responsibility. Extrinsic rewards are part of the job situation that
is provided by others. They may include the salary and benefi ts or status
that one receives from being employed. An individual may have a routine
job that does not lead to the employee ’ s motivation, but the employee may
be motivated by the compensation and benefi ts that he or she receives
through being employed.
Performance evaluations provide management with essential informa-
tion for making strategic decisions about employee advancement, retention,
or separation. Evaluation links training and development with career plan-
ning and the agency ’ s long - term human resources needs. Used to sup-
port job analysis and recruitment efforts, performance evaluations are an
important component of evaluating the knowledge, skills, abilities, and
other characteristics (KSAOCs) available among the agency ’ s internal
supply of labor. Evaluations can be used to assess career advancement
opportunities, for succession planning, and to develop compensation and
reward systems, as well as to identify defi ciencies in incumbent KSAOCs.
Accurate evaluations provide information and feedback to employees.
Employees must be informed about the goals and objectives of the agency
and the role they play in the agency ’ s success. They must know what
standards will be used to judge their effectiveness. Supervisors must com-
municate to employees their strengths as well as their defi ciencies, thus
providing the opportunity for employees to correct their weaknesses before
serious problems emerge. Through the evaluation process, training and
development needs can be identifi ed and addressed.
Performance evaluation systems are indispensable for planning and
research. A review of incumbent competencies and KSAOCs may indicate
that they lack critical skills that the agency needs, thus necessitating that
external recruitment efforts be undertaken or, if time permits, that incum-
bents be trained and developed. Performance evaluations are also used to