Evaluating an employee’s performance can be difficult. Research shows that performance ratings often have little to do with skills or hard work. Managers tend to give ratings tied to factors unrelated to performance. And employees tend to get credit or blame for circumstances beyond their control. It’s hard to separate the person’s performance from their situation. How do you determine when to invest more in someone’s development? How do you know when it’s time to move on and find someone with a better match of capabilities? As with most management decisions, the first step in the process is to be clear in your own mind. That’s why we designed a simple, ten-question diagnostic tool to help you clarify your thinking.