The purpose of the study was to have a theoretical review of the performance evaluation of an employees’ task outcome in tertiary institutions. In recent years, scholars and practitioners have recognized the relevance of evaluating employees’ performance as a measure for promotion, dismissal, and organizational planning. As a consequence, this article examined some of the relevant issues involving performance appraisal, performance evaluation challenges, performance evaluation, purpose of evaluation, evaluation procedures, and some empirical reviews. The data gathered through theoretical review and personal interview methods conducted in five tertiary institutions in Rivers State which involved forty-eight academic and thirty-four nonacademic staff revealed that performance evaluation enables the provision of training and development of opportunities for employees. As a consequence, it was concluded that performance evaluation is a good process necessarily required by tertiary institutions to provide them with feedback on employees’ performance to justify personnel decisions on promotion and compensations. The paper therefore, recommended that tertiary institutions should prioritise performance evaluation as a means of informing employees about their performance, rewarding excellent performers, and achieving expected task outcome