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While some companies spend decades on perfecting their individual performance review and evaluation systems, other companies such as Adobe, GAP or General Electric are eliminating them altogether.
Performance review methods differ from organization to organization, but the basic principles of how to properly communicate with an employee about his or her performance remain the same.
No matter how strong and well documented a business performance strategy is, an organization will never get to outstanding results unless it has a robust employee performance management in place. At the end of the day, the human factor plays an essential role either in the sound success, either in the tragic failure of an organization, no matter what its size is.
If you type “performance management” in any available search engine, you will be flooded with news mentioning the status quo of employee performance reviews, or rather, pointing out to the fact that they are becoming obsolete.
“Pay matters not just because people need a paycheck, but because pay is a point of perceived fairness” – Heidi K. Gardner, professor of organizational behavior at Harvard Business School.
Performance reviews generally represent that time of the year when everyone looks back on their expected and achieved outcomes, draw the line and start pondering on future endeavors.
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