Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What are the three key purposes typically found in most employee reviews?

1. Assess past performance, establish future goals, and terminate employment

2. Evaluate skills, assess past performance, and plan future potential

3. Assess past performance, plan future potential and roles, and fix rewards

4. Review past complaints, outline training needs, and plan promotions

The correct answer is: Assess past performance, plan future potential and roles, and fix rewards

The three key purposes commonly found in most employee reviews are to assess past performance, plan future potential and roles, and determine appropriate rewards. Assessing past performance gives an opportunity to evaluate how well an employee has met their job responsibilities and contributed to the organization’s goals. This aspect provides employees with valuable feedback on their strengths and areas needing improvement. Planning future potential and roles is crucial for personal and organizational development. It involves setting career aspirations, discussing opportunities for advancement, and aligning an employee’s future goals with the organization's objectives. This is particularly important for succession planning and ensuring that the right talent is being developed for future roles within the company. Fixing rewards is also a critical component of employee reviews. This aspect addresses how current performance influences compensation and benefits, ensuring that employees feel valued for their contributions. It can also involve discussing promotions or bonuses, which boosts morale and motivation. The other options provided do not entirely encompass these essential aspects of employee reviews or misinterpret their core intents. For example, terminating employment may occur in performance evaluations but is not a fundamental purpose of the review process. Similarly, options that focus solely on training needs or complaints do not fully capture the broader goals of career development and performance assessment integral to most organizational review systems.