Performance review

(1) The formal, systematic assessment of how well employees are performing their jobs in relation to established standards, and the communication of that assessment to employees.
(2) The stage of the business buying process in which the buyer rates its satisfaction with suppliers. In this regard there are three methods of performance review. Firstly, the buyer may contact the end users and ask for their evaluations. Secondly, the buyer may rate the supplier on several criteria using a weighted score method. Finally, the buyer might aggregate the cost of poor supplier performance to come up with adjusted cost of purchase including price. The performance review may lead the buyer to continue, modify or end the relationship with the supplier.