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PerformanceReviews, Are they obsolete?

Whether you are a minority business owner, corporate or community leader, historically performance reviews have been an annual practice. However, today, major firms are beginning to eliminate performance reviews as discussed in The Harvard Business Review article: Let's Not Kill Performance Evaluations Yet. Performance reviews can be awkward and challenging. Reviews can stick people in boxes and leave team members waiting far too long for feedback. It is not a surprise that by the end of 2015 at least 30 of the Fortune 500 companies had totally eliminated formal performance reviews; the rating of employees still exist - employees just cannot see the ratings. Ratings are done subjectively, behind the scenes, and without input from the people being evaluated. I believe performance reviews are important to the success of any organization. Employee contributions to the organization over time need to be assessed in some way. Decisions about pay and promotions have to be made. In absence of formal evaluations, those decisions are made "in a vacuum." Facebook has chosen to hang on to evaluations despite their costs to help ensure fairness, transparency, and talent development. When the company analyzed its performance management systems several years ago, it conducted focus groups and a follow up survey with more than 300 people. The feedback was clear: 87% of people wanted to keep performance ratings. They wanted to know where they stood with the supervisor and organization. Performance reviews were developed for good reasons: getting rid of evaluations or reviews might be an overreaction to poor execution. Leaders at Facebook think it is more constructive to mitigate the risk by building a culture that recognizes and rewards growth. Read the full Harvard Business Review Article

"Let's Not Kill Performance Evaulations Yet" by Goler, Gale and Grant here

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