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A Revolution in Performance Management

3/30/2021

2 Comments

 
Picture
​More than a third of U.S. companies have abandoned the traditional performance appraisal process. These include tech companies such as Adobe, Dell, Microsoft, and IBM, professional services firms like Deloitte and PwC, and early adopters in other industries, including GE, the longtime role model for traditional appraisals.

Writing in the Harvard Business Review, Peter Cappelli, the George W. Taylor Professor of Management at Wharton and Anna Tavis, Clinical Associate Professor of Human Capital Management at NYU, say they see three clear business imperatives that are leading companies to abandon
performance appraisals:

  • The return of people development: Keeping good people is critical, and companies have been trying to eliminate “dissatisfiers” that drive employees away. Annual reviews are often on that list, since the process is “so widely reviled and the focus on numerical ratings interferes with the learning that people want and need to do.”
  • The need for agility: Future needs are in flux, and organizations don’t necessarily want employees to keep doing the same things. “It doesn’t make sense to hang on to a system that’s built mainly to assess and hold people accountable for past or current practices.”
  • The centrality of teamwork: Moving away from forced ranking and appraisals that focus on individual accountability makes it easier to foster collaboration. 

The authors argue for a system that more closely mirrors the natural cycle of
work. Ideally, conversations between managers and employees occur when
projects finish, milestones are reached, and challenges pop up.

How is your organization evaluating performance, and do you think its method
should be updated? To join the conversation, click on
​“Comments” above.

2 Comments
Isaac Dixon link
3/30/2021 09:23:21 am

I have had the good fortune of teaching HR students are Portland State University for more than a decade. The subject that I have focused on is Performance Management which encompasses more frequent conversations between employees and their managers and discussions about the alignment of individual and organizational goals and objectives.

These students (many of whom already are working in careers that align with HR) want frequent engagement with their leaders and open, honest discussion about what they do well and where they need to grow. They universally hate the "annual litany of sins" known as the performance review.

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Peter
3/30/2021 11:45:19 am

Perfectly said Ike. You’ve always been an opinion leader for us in the field of HR. We know as communication consultants for many years that traditional performance reviews were dreaded on both ends. Managers avoided giving them and those on the receiving end complained about rarely receiving them, or never getting them in a timely manner, or hating the awkward nature of their presentation. Commonly we heard “If I had heard this earlier in the year I could have done something different.” Thank you for sharing your experience with our community.

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  • Courses
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