This is Chapter 8 of the book Creating Effective Organizations. This chapter covers Evaluating Performance, Multidimensionality of Performance, Role of Performance Evaluation, Criticisms of Performance Evaluation, Performance Evaluation Methods, Results-oriented Appraisals, Evaluation Process, Goal Setting, Performance Feedback, Who Should Evaluate Performance, Performance Interviews, Rewarding Performance, Base Pay, Financial Incentives, Recognition Programs, and Intrinsic Versus Extrinsic.