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Sanchit Santosh Patil TYBMS B (50) : More Harm Than Good: The Truth About Performance Reviews

Traditional annual performance reviews are often ineffective and a waste of time, costing organizations millions of dollars in lost productivity each year. They frequently make employees feel awkward and do little to actually help improve performance, sometimes even making it worse. Additionally, performance reviews try to accomplish too many goals in a single conversation, adding confusion. To be more useful, reviews should focus on answering questions about what employees need to do to be successful and what their career path looks like. Organizations should also include team and customer goals in reviews.

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50 views1 page

Sanchit Santosh Patil TYBMS B (50) : More Harm Than Good: The Truth About Performance Reviews

Traditional annual performance reviews are often ineffective and a waste of time, costing organizations millions of dollars in lost productivity each year. They frequently make employees feel awkward and do little to actually help improve performance, sometimes even making it worse. Additionally, performance reviews try to accomplish too many goals in a single conversation, adding confusion. To be more useful, reviews should focus on answering questions about what employees need to do to be successful and what their career path looks like. Organizations should also include team and customer goals in reviews.

Uploaded by

Sanchit Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Sanchit Santosh Patil TYBMS B (50)

More Harm than Good: The Truth about Performance Reviews

Managers are required, in most organizations, to sit down once a year with each of their team
members and have this weird conversation: the annual performance review. It tends to feel
forced and awkward, and it usually does not do a lot to help employees get better at their
jobs. For most organizations, the performance review is simply assumed to be "the right thing
to do". 4 million to $35 million a year in lost working hours for an organization of 10,000
employees to take part in performance evaluations - with very little to show for it. Traditional
performance reviews and approaches to feedback are often so bad that they actually make
performance worse about one-third of the time. Another major cause of awkwardness is that
most performance reviews are trying to do too many things in a single conversation. They can
add a layer of confusing subtext to the conversation, and it's also one reason traditional
performance reviews have persisted so long, though they are so ineffective: Creative
reinvention of performance reviews often involves a discussion with the legal department.
When it comes to the developmental aspect of a performance review, the real questions
employees want answered are, "What do I need to do to be more successful?" and, "What
does my future look like?" There's not always a cut-and-dry answer to those questions. Of
course, you do not want to take things too far in the opposite direction - like elevating "team
players" to such a degree that it encourages superficiality, diffusion of responsibility and
mediocrity. But most organizations would do well to include team and customer goals as part
of a performance review.

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