Performance Improvement

 Basis for employment decisions (e.g., promotions, terminations, transfers)

 Criteria in research (test validation)

 Aid in communication between employees and employers about organizational expectations

 Development of objectives for training programs

 Transmission of objective feedback for personal development

 A means of documentation to aid in keeping track of decisions and legal requirements

 Wage and salary administration

 Formulation of job criteria

 Selection of employees for certain organizational tasks

 Part of guiding and monitoring employee career development

 Aid in work motivation through the use of reward systems