BECAUSE OF THE IDIOSYNCRATIC NATURE OF THE MBO FRAMEWORK, EVALUATIONS BASED ON IT ARE SELDOM USED FORMALLY FOR ADMINISTRATIVE PURPOSES SUCH AS SALARY ADMINISTRATION. NOT SO IN THE PRESENT MODEL. THE INDIVIDUAL PERFORMANCE EVALUATION MODEL IS DERIVED FROM A GENERAL PROGRAM MANAGEMENT MODEL. THE MODEL IS BOTH PROBLEM-ORIENTED AND DECISION-ORIENTED. FINAL OUTCOMES IN THE MODEL ARE A FUNCTION OF BOTH THE INDIVIDUAL'S EFFORTS AND THE EXTRAINDIVIDUAL FACTORS. THE MAIN THEORETICAL ELEMENT IS THE CONCEPT OF PERFORMANCE IN TERMS OF THREE CONSECUTIVE STAGES OF OUTCOMES: INTERMEDIATE OUTCOMES, AND THE END OF RESULT. THE THEORY'S SECOND ELEMENT IS THE CONCEPT OF MEDIATOR VARIABLES (PROCESS VARIABLES AND DISPOSING VARIABLES), WHICH AFFECT PERFORMANCE BUT WHICH ARE MOSTLY NOT OF THE INDIVIDUAL'S OWN MAKING. THE THEORY'S THIRD ELEMENT IS THE DISTINCTION BETWEEN MEANS AND ENDS. THE SYSTEM USES HYBRID METHODS TO EVALUATE BOTH BEHAVIORS AND RESULTS. WITH THE VALUE CONTRIBUTION METHOD (VCM), EACH OBJECTIVE CAN BE QUANTIFIED AND STANDARDIZED. THE VCM THUS OVERCOMES ONE OF MBO'S MAIN DRAWBACKS. IN ADDITION, OBJECTIVE BEHAVIORAL CRITERIA ARE USED TO EVALUATE OUTCOME STANDARDS OF PERFORMANCE. ACHIEVEMENT CRITERIA ARE BEING DEVELOPED FOR INTERMEDIATE STANDARDS. THE SYNTHESIS OF THE MODEL'S COMPONENTS CAN BE USED TO SUPPORT SALARY ADMINISTRATION AND TO DIAGNOSE ANY PERFORMANCE PROBLEMS WHICH WARRANT ATTENTION. IF A FIELD TEST OF THIS NEW PERFORMANCE EVALUATION SYSTEM IS SUCCESSFUL, A MAJOR BENEFIT WILL BE PROVIDING INFORMATION ACROSS DIFFERENT OUTCOMES CLASSIFICATIONS. THE METHOD WILL PROVIDE LEGITIMATE DISCRIMINATIONS OF PERFORMANCE BECAUSE THE BEHAVIORAL AND RESULTS CRITERIA ARE BASED ON REPORTS OF CRITICAL JOB BEHAVIORS AND ORGANIZATIONALLY VALUED RESULTS. MOREOVER, THE ACHIEVEMENT CRITERIA ARE TIGHTLY LINKED TO ORGANIZATIONAL GOALS; MEDIATOR VARIABLES BEYOND THE INDIVIDUAL'S CONTROL ARE USED TO ADJUST THE EVALUATION. TABLES, FOOTNOTES WHICH INCLUDE REFERENCES, AND AUTHOR BIOGRAPHY ARE INCLUDED. (CFW)