The informal and regular feedback to the employees is essential. It keeps them motivating and thus an employer can keep a close eye on the people in an organization. The evaluations must be handled by HR department. In such a case, managing employees can become easy and half the role can be performed by HR department. In these kinds of evaluations all issues related to pay, working environment and peer relations must be discussed. It really helps in spotting weak issues which further can be fixed by introducing an effective strategy. So, it can be said that employee performance evaluations are not only beneficial for boosting the productivity but also help in maintaining good relations within employees.