The employee performance evaluation is generally done by the immediate boss or a supervisor; in this your performance is measured against set targets and goals. A correctly rated performance and appreciation given to an employee affects his performance in a positive manner and to a great extent. It boosts the morale of an employee and motivates him to be more committed towards his work. The problem arises when this system fails to evaluate the true performance of an employee. If there are certain flaws in the system, the person who is doing the evaluation would not be able to do his job as per the requirements and results would not be correct. It may happen that an evaluator does not do his job honestly. It may also happen that personal grudges of the evaluator are seen in the evaluation he or she undertakes.

The performance evaluation can be improved if certain aspects of this system are changed. Many experts suggest that keeping a track record on a regular basis rather than annually will be of great help. This is a very accurate way of evaluating the performance of an employee. Another important thing that has can be changed is that the employees should be asked to fill their own 360 degree evaluation forms.