Friday, August 2, 2013

Do Performance Reviews Still Matter?

Friday, August 2, 2013
 
No one likes performance reviews.  Regardless of which side of the table you are on, giving or receiving a performance assessment often is not fun.  Many organizational performance reviews are perceived as one-sided, unfair, invalid, and ineffective.  Managers have to do them, employees have to endure them.  Most organizations, large, small, and in between, still require periodic reviews be given.  Being late or failing to complete employee reviews can affect the performance outcomes for managers.  Like a Sword of Damocles, annual employee appraisals are dreaded, even feared by managers and employees alike.
 
Although some employers have embraced 360 or peer reviews and self-assessments to supplement the manager’s review, these are often seen as just another add-on that must be endured.  An additional trend has been to separate the performance review so that any adjustment to compensation is completed at a separate time.  But do performance reviews still matter?
 
There is an evolving thought that traditional manager-employee performance reviews no longer matter, are not relevant, and are more harmful and less than helpful in improving performance.  The emerging analysis on the subject of the ineffectiveness of performance reviews is beginning to mount.  A simple survey of recent publications makes one rethink the role of performance reviews.
If performance reviews as so destructive, why do organizations perpetuate them and what will replace the annual performance appraisal?  For the first question, Tevye said it best, “tradition.  Performance reviews pervade our culture.  Quarterly corporate profit reports, annual reports or public school performance, and consumer product reports abound as a means of determining who’s on top and what's on bottom.  Share price, teacher bonuses, and product sales are swayed by performance reviews.
 
As for what might replace the manager-employee performance review, possibilities include more of a continuous coaching, feedback approaches coupled with a pre-review to set expectations, and a personal career development plan.  But isn’t this occurring already?  From the examples above, in many organizations the once a year, one-sided annual review is still more or less the norm.  It is also clear that many managers are not equipped to deal with good or bad employee performance.  Ignoring both levels of performance will only serve to extinguish the desired performance and reinforce unacceptable outcomes.
 
How can employers expect to attach and retain their best talent, if those individuals have no clue as to the value they bring to an organization, what growth opportunities abound, and where that value will take them?

1 comment:

  1. Hi

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    Source: Annual performance review sample

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    David

    ReplyDelete