Performance appraisals

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Performance appraisals are used to address performance concerns, promotions, pay increases, and productivity. So, why do you think some human resource (HR) professions/managers feel performance appraisals are no longer needed? Have performance appraisals lost relevance in today’s metric driven performance management organizations?

 

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You’re right, traditionally performance appraisals have been a cornerstone of HR practices. But there’s a growing movement for revamping how we assess employee performance. Here’s why some HR professionals feel annual appraisals are outdated:

  • Inaccuracy: They often focus on a distant past (past year’s performance) rather than ongoing contributions.
  • Infrequency: Feedback is most effective when it’s timely, not confined to once-a-year meetings.
  • Formality: Stiff reviews can create tension and hinder open communication.
  • Subjectivity: Ratings can be biased, leading to demotivation and unfair assessments.

Metric-driven organizations, while valuing data, recognize these limitations. Here’s how appraisals might be evolving:

  • Continuous Feedback: Regular check-ins and project-based feedback loops provide a more accurate picture.
  • Data-driven Insights: Metrics like sales figures or customer satisfaction can objectively measure success.
  • Goal Setting: Collaborative goal setting between employees and managers fosters a sense of ownership.
  • Development Focus: Feedback should guide growth, not just assess past performance.

So, appraisals aren’t necessarily vanishing, but they’re transforming into a more dynamic, two-way conversation focused on development and ongoing performance.

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