Microsoft based on the theory of establishment of objectives, evaluates staff in accordance with very ambitious goals of performance, which respond to the acronym SMART (specific, measurable, achievable, results and within a certain time-based). So a programmer can commit at end of 3 modules of code, within a specified time limit or to reduce the number of errors from 1,000 to 50. Evaluates all staff every six months. These assessments are linked to increase in salary, bonuses, promotions and stock options. Such criteria and form of assessment, are perfectly in tune with the kind of people that the company recruits (the more ambitious and brilliant top universities), and with the strategy and culture organizational pursuing, namely to enhance competition and maximum effort in their employees, in order to achieve and consolidate a position of leadership). The evaluation systems are placed in a context that It has at one end very subjective criteria and the other very objective criteria. Each system has its own advantages and disadvantages, but there is not an ideal system. An effective evaluation system implementation depends on both the design of the system and use this evaluators make.
There are various social and psychological factors influencing the evaluators that make that ratings are not always accurate. What’s more, accuracy is not always what is sought with the evaluations. The evaluation should be something more than an exercise that looks to the past and rewards or punishes the person for their work during the previous year. Also it should be directed to the future, to what the person can do to develop their full potential in the company. This requires managers to provide a (proper) feedback to workers who allow them to improve their performance. A path increasingly more used for this is 360 degree assessment. Evaluation systems are by deficit nature and require to be periodically reviewed and changed. This is not necessarily bad, since such changes serve to focus attention on the performance: does that mean?