The Equal Employment Opportunity Commission (EEOC) guidelines apply to any selection procedure that is used for making employment decisions, not only for hiring but also for promotion, demotion, transfer, layoff, discharge, or early retirement. Therefore, performance appraisal procedures must be validated like tests or any other selection device. Employers who base their personnel decisions on the results of a well-designed performance reviews are much more likely to be successful in defending themselves against claims of discrimination.