Finally, performance management systems allow organizations to collect useful information that can be used for several necessary—and sometimes, legally mandated—documentation purposes. First, performance data can be used to validate newly proposed selection instruments. Scores on the test can then be paired with scores collected through the performance management system.
If scores on the test and on the performance measure are correlated, then the test can be used with future applicants as predictors of performance for the administrative positions. Second, performance management systems allow for the documentation of important administrative decisions, such as terminations and promotions. This information can be especially useful in the case of litigation.