The following essay is concerned with research about the topic of performance management and evaluation systems. Since performance management systems and its components such as performance evaluation are nowadays more than ever an important key factor within organizations to satisfy employees and to support and improve productivity, outcomes and organizational competitive advantages, it is imperative to consider a handful of aspects to be able to deliver effective and forward looking performance evaluation. Within this context establishing a ‘culture of dialogue’ with open two-way communication, performance self- appraisal forms and ongoing feedback is forward looking and can help firms to satisfy their employees in order to achieve acceptance with the performance management system as a whole. Moreover, organizations are increasing their emphasis on developing people what is an important aspect considered in the following assignment. If performance evaluation is to be effective it needs to identify employees’ developmental needs linking them with training and developmental activities that provide employees with opportunities to enhance strengths and to improve weaknesses. How managers and supervisors can ensure this is achieved and what other important aspects are required to be considered in order to provide the organization and their employees with effective and forward looking performance evaluation will be researched and described in the following essay.
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