To conduct employee assessment, the management starts by reviewing the current human resource status of the organization. Usually, the review is done by generating what is called the human resource inventory report. Generating a human resource inventory report is easy, thanks to the availability of today’s sophisticated computer systems. The input for human resource inventory report is derived from forms completed by the employees, that may list the name, educational background, training, prior employment, capabilities, languages spoken, and special skills that they have. Using the human resource inventory report, the management can assess what skills and talents are currently available in the organization.
Job analysis is another part of employee assessment. The human resource inventory report tells the management what each employee can do, while job analysis is more fundamental. We can define job analysis as an assessment of the kinds of skills, knowledge, and abilities that are needed to perform each job in an organization successfully.