Are Performance Reviews Dead?

Reports of the death of performance reviews are greatly exaggerated, according to The Economist (Feb 20, 2016). The majority of organizations are not completely eliminating reviews, but modifying the process by emphasizing ongoing, interactive feedback and coaching throughout the year.

Many employees and managers feel that performance reviews focus solely on past behavior and do not adequately evaluate their work. Managers feel that performance reviews are time-consuming and actually create an adversarial relationship with the employee.

Performance management, no matter what system or appraisal form is used, can only be successful if the organization’s leadership believes it is an essential tool for high performance and an essential responsibility of their managers. With this foundation, organizations can train managers to overcome the shortcomings of performance reviews and use them to effectively develop employee capabilities, create a basis for compensation decisions, and improve productivity.