Part 1 400 words
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?
Part 2
Please respond this Discussion 200 words
Performance reviews have long been used as a review for how an employee is performing within their job and their overall contributions to the company. “When executed correctly, performance appraisals can pay off significantly. Among other things, they are capable of boosting employee morale and engagement, clarifying expectations, helping to get the best out of staff, and incentivizing hard work and dedication” (Hayes, 2023). These are typically done annually by a supervisor but there are different types that can be done. Self-assessment and peer assessment are examples of different types.
In theory performance appraisals seem to be good tools for HR to use but according to Newman a survey resulted in some very astounding statistics. “39 percent felt their performance goals weren’t clearly defined. 39 percent felt they didn’t know how their performance was evaluated. 45 percent didn’t believe their last performance review guided them on how to improve. 45 percent didn’t think the reviews could differentiate among good, average, and poor performers. 48 percent didn’t think doing a good job was recognized” (Newman, 2019). Employees that are not happy with performance appraisals are less likely to produce good work.
There are many reasons why companies are embracing new ways to implement performance appraisals. My company still utilizes annual performance appraisals. Honestly, by the time it rolls around I forget some important details. For example if I had some accomplishment in February, I will forget about it when January rolls around. Also, I fell like within a years time, I accomplished forenamed task and moved on. I feel a more accurate review should focus on current tasks with only slightly focusing on past highlights. According to Erin Posey with Benchmark One, “Only 27% of HR professionals think an annual performance review improves employees’ skills, knowledge, and abilities. Put that another way; 73% believe they are a waste of time and resources.”
Have performance appraisals lost relevance in today’s metric driven performance management organizations? I would say in some what, yes. Companies like Microsoft are “stepping away from traditional annual evaluations and embracing a more dynamic approach to performance reviews” (Häggström, 2024). Our textbook mentions “Pulse” as an alternative to performance appraisals. These are short surveys sent to employees on a weekly bases. This ensure a constant flow of feedback between employee and employer. Microsoft has utilized Connects. “The tech giant now champions regular “Connects” – check-ins between employees and managers – designed to delve into performance, career development, and alignment with company objectives. This strategy prioritizes timely feedback and aims to foster continuous employee growth” (Häggström, 2024). Bottom line, HR needs to create trust, balance, and an open line of communication with employees. Creating an environment employees can grow within.
References:
Häggström, L. (2024, January 15). Taking the pain out of appraisals: rethinking performance reviews – I by IMD. I by IMD.
Hayes, A. (2023, May 25). What is a Performance Appraisal. Investopedia.
Newman, B.G. J. (2019). Compensation (13th ed.). McGraw-Hill Higher Education (US).
Posey, E. (2017, April 19). 9 Reasons to Get Rid of the Annual Performance Review. BenchmarkONE.
