You are correct. However many companies run software that can take a psp and score a driver based on the type and number of inspection violations. This is a tool they use to evaluate prospective drivers. Some compaies also use this to track current drivers.
A company is allowed to waste their money any way they want. Since violations do not follow a driver from carrier to carrier, creating a score as a predictive resource rather than just using the record itself seems to me to be a waste. A company is “not” allowed under the Regs to run a PSP on their employees, only prospective employees and face heavy civil fines if they are caught doing so.
CSA/PSP = gobbledygook. Very few people in or out of the industry fully understand what these things are. This is further aggravated by the fact that then these said people then go on to teach it in classrooms. There are several FMCSA handouts that are available on the internet in PDF form trying to clarify these mistakes. Do you know that there are still (safety) personnel that tell drivers just crossing a state line mandates logging. This is one reason I try to stay out of these subjects.