The PAS, to be effective in evaluating geographically dispersed salesforces, must be job related, reliable, valid, standardized, practical, comparable, fairly discriminable and useful. These criteria are interrelated and generally noncompensatory in nature. For example, if a performance measurement system does not provide comparable measures, no level of reliability will offset the lack of comparability in determining the overall effectiveness of the PAS. Therefore, an effective PAS must meet a minimum threshold on all criteria, not just some of them. If the criteria are adequately satisfied, the PAS legal defensibility becomes considerably easier. Even more importantly, a PAS that meets these requirements provides improved information for making crucial organization decisions. Since performance measures are needed for the equitable distribution of organizational rewards, the improved appraisal measures will improve management decisions for selection, motivation, training, and retention.
ASJC Scopus subject areas
- Human Factors and Ergonomics
- Management of Technology and Innovation