Formation and Performance agreement is an agreement that specifies the targets and objectives that an organization has to meet in order to be eligible for funding or any other benefits that another organization is ready to deliver. The formation and performance agreement outlines the goals that are to be achieved by the entities of an organization and the benefits or the rewards that will be delivered on successful accomplishment of the goals.
Formation and Performance agreement serves as the basis for assessing the performance of an employee and to judge his caliber to decide his appraisal. The employee will be rewarded appropriately, in accordance with the performance management policies, if he has met the performance expectations. The formation and performance agreement can also assess the performance of the students of an institution or any resource of an organization, whose performance needs to be evaluated. This agreement may be renewed annually to revise the goals and targets that are needed to be achieved.
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