Review of “Performance Review Systems”

The Performance appraisals and reviews are an essential and imperative part of work. With ongoing learning process, it is learnt that traditional performance appraisals are not that successful in positively influencing employee behavior. A study conducted in 1996 on behalf of the Society for Human Resources Management (SHRM) found that over 90% of appraisals were judged to be ineffective. In an old-style performance review, the manager typically meets with an employee once a year and in under an hour attempts to get through the necessary review forms with focus on the employees’ recent job performance & not the previous 12 months work. As a result, an overall dissatisfaction with such system by both the employer and the employee is mirrored reasons being the appraisals/reviews are too infrequent resulting in demotivation.

Is Performance Review Needed?
Regardless of issues with system and critic by people, there are several valid reasons to reflect the need of performance appraisal/review system. Such process focuses on staff job performance in relevance to agree upon objectives or goals. It identifies the employees’ contributions toward organizational goals, shows areas of improvements, personal developments need etc. Such review systems help in making decisions about promotions, training and staffing needs. On top of that there could be several legal reasons for a good appraisal program.

Real-Time / Continuous Performance Feedback:
Speaking about the current fast-paced work environment, organizations know that employees want an environment that inspires a continuous discussion between employer and employee. Staff need continuous performance feedback. They want to be recognized and rewarded for their achievements and want feedback about performance, so they can make changes as suitable, if needed.

My Two Cents:
Real-Time & continuous helpful communication from supervisors is a main stimulus. Make staff realizes that they are important part of organization, let them take ownership and keep them motivated. The performance review process must be updated with time and meet today’s dynamic work environment requirement. It must be participative, fair, mutually discussed and agreed upon & identify areas of improvement.

Numan Aly (www.numanaly.com) is a Senior Certified Professional (SHRM-SCP) who has conducted multiple talks on this topic. You can check out his LinkedIn profile. Numan Aly has also uploaded multiple useful motivational and informational videos at his YouTube Channel.  He is the HR pro who translates organizational vision into HR initiatives that improve performance, productivity, growth by enabling, engaging and empowering people and organizations. You can also follow Numan Aly at Twitter & Facebook

Providing employees with continuous feedback in a timely and supportive manner is at the is the answer. In my view, traditional performance appraisals/reviews are good to go with but with addition of frequent communication & feedback throughout the year and most probably with quarterly review of objectives aligned with overall organizational objectives. Inspiration taken from : www.bestpracticeinstitute.org