The evaluation process can identify improvement areas that allow the employee to do
their jobs more effectively.
Similarly, if there are significant gaps between the skills the workers possess and the
skills needed to perform well, training can be designed to help close those gaps.
As the strengths and weaknesses of each worker are identified through the evaluation
process, it is easier to assign employees to the work for which they are most suited.
Salary and wages will be allocated more fairly if there is a clear indication of the
level of performance of each employee. Those who are performing at higher levels should
receive appropriate rewards (raises, promotions, etc.).
If promotions and firing decisions are to be done fairly, they need to be based on
accurate performance measures. I/O psychologists ensure that the decision process is based
on valid measures of performance.