What is one major component of performance evaluation?

Setting clear performance objectives is a fundamental component of performance evaluation because it establishes a benchmark against which employee performance can be measured. By having specific, measurable, achievable, relevant, and time-bound (SMART) objectives, both employees and managers have a mutual understanding of what success looks like in a given role. This clarity helps in assessing an employee's contributions effectively and ensures that evaluations are fair, objective, and aligned with organizational goals. Additionally, well-defined objectives aid in guiding employee development efforts and can motivate individuals to reach their full potential, ultimately contributing to improved performance across the organization.

In contrast to this, while conducting employee satisfaction surveys, implementing training programs, and offering bonuses based on tenure are all important aspects of employee management and engagement, they do not directly serve the primary function of evaluating performance against predetermined goals. Instead, these elements may support aspects of performance improvement or employee satisfaction but are not central to the evaluation process itself.