Several big companies have scrapped performance reviews, which are openly despised by many managers.
The trouble is, they are not necessarily despised because they are not useful, but because they take time, effort and can be awkward. In other words, not everyone has the skills necessary to use performance reviews efficiently.
Is it right to scrap a tool that could potentially be helping businesses to succeed in the long run, just because the users can’t use it?
You can find our more about performance reviews here.
Geof Colvin wrote in his Fortune article, “The theme is consistent: Hallelujah, performance ratings are dead. And I’d be cheering too, except for one problem. Performance ratings in their multiple forms are tools, and at many companies they’re despised not because the tools are bad, but because the users of the tools are inept. The danger is that leaders may conclude they can improve their organization’s performance by changing the tool when the real issue, a much tougher one, is improving the skills of those who use any tool for helping employees get better.”
You can read the full article here.
So if everyone is scraping performance reviews, what are they replacing them with?
Geoff Colvin asked Dave Calhoun, a former GE executive and CEO of Nielsen what he thought about performance reviews. He said the whole point of performance management “is to force a conversation”. Not all managers enjoy having these conversations or execute them effectively.
I wrote a bit more about this in an older post, where I suggested making candid conversations about performance part of company culture. You can read more here.
You may be inclined to agree with Microsoft or Dell. Things seem to be working well for them. But I think although business success doesn’t only come down to the performance of the employees, some of the other factors may well be influenced by it. For example business goals and business culture are important for any business to succeed, and without good, strong conversations happening between managers and employees, cultures can decline and goals can become skewed.
One of our clients, Caspian one said, “We are delighted with the progress that has been made in the last 12 months. Reality HR’s contribution to improving the way we are now managing performance has been terrific. Laura and her team have also helped us with a number of absence, disciplinary and capability problems. These have all been dealt with in a calm and professional manner, without any comebacks. This is a testament to the robustness of the procedures we now have in place.”
To find out how Reality HR could help train your managers, support your performance management, and support your performance reviews, give us a call on 01256 328 428 or tell us a good time to call you:
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from Reality HR Limited http://www.realityhr.co.uk/blog/microsoft-dell-ditch-performance-reviews/
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