In reward systems, assessing performance is vital for ensuring that employees are recognized and rewarded effectively. A common tool used for this purpose is structured and periodic evaluations. These evaluations help in identifying employee strengths, areas for improvement, and overall contribution to organizational goals.hey are essential for making informed decisions regarding promotions, bonuses, and other rewards, thereby aligning employee performance with the company's strategic objectives. By utilizing these assessments, organizations can foster a culture of continuous improvement and motivation.