Performance appraisal and what they do?
- A performance appraisal (PA), also known as the performance review, or performance evaluation, is a process by which the productivity of a worker is documented and assessed.
- Performance appraisals form an essential part of career advancement and consist of regular feedbacks of employee performance within the companies.
- These appraisals are conducted at least annually in most organisations.
Why performance previews are replacing performance reviews?
- Many companies are choosing to embrace a new system called performance preview instead of the "one-side-accountable, boss-administered/ subordinate-received performance reviews."
- The performance previews provide a timely check and feedback to the employees and facilitates immediate damage control rather than an annual report.
- Moreover, these previews are aimed at taking the focus away from the boss's authority and target the team member's individual strengths.
The flaw in the current system
- Performance reviews though aimed to increase productivity, have proven to be rather "ineffective, unreliable and unsatisfactory", according to research on it.
- The research highlighted that these reviews consume a lot of time and leave most employees dissatisfied and disgruntled.
- A once-a-year, backwards-looking conversation with the boss does not answer the challenges that organisations face.
- Though intended to be objective, it is anything but that.
Goodbye to employee rankings!
In the U.S., 6% of Fortune 500 companies have done away with these rankings. It had been found out that companies such as Deloitte spend as many as 2 million combined hours in performance previews.
The 4 question approach
- The 4 question performance approach (employed at Deloitte) makes the managers answer 4 questions.
- The managers have to agree/disagree if they think an employee qualifies for bonus/compensation increase; and if he is needed on the team.
- In the next 2 questions, in Yes/No terms the manager will ascertain if the employee is a low performer and if he is ready for promotion.
Accenture to bid adieu to annual performance reviews
23 Jul 2015
- Accenture, one of the largest consulting, technology services and outsourcing companies in the world has decided to get rid of the annual performance review.
- The company plans to implement a better system, in which employees will receive timely feedback on an ongoing basis following assignments from their managers.
- This disbanding of rankings will come into operation in the 2016 fiscal year.
IBM to reform its annual appraisal system
4 Feb 2016
- IBM CEO Virginia Rometty, at a townhall in one of its biggest centres in Bengaluru spoke on the necessity to reform and reinvent IBM's employee governance structure.
- She stated that a new app-based employee evaluation criterion would be employed for the India operations, called "Checkpoint".
- According to the new scheme, workers will be evaluated atleast every quarter, replacing the existing annual appraisal system.
Infosys launches iCount, its new appraisal system
8 Feb 2016
- Infosys introduced iCount, its new incentive-based structure which will replace the old performance appraisal system.
- This method endeavors to disproportionately remunerate individual workers on the basis of specific targets.
- As part of iCount, workers will be given "feedback and subjected to reviews throughout the year rather than just an annual appraisal."
- Infosys said iCount was part of its CEO Sikka's "new and renew" strategy.
Abolish performance appraisals - and do some different things instead. | Management Innovation eXchange
PC: 'Accenture Tower Minneapolis 1' by AlexiusHoratius - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons
PC: 'Ginni Rometty at the Fortune MPW Summit in 2011' by Asa Mathat - Licensed under CC BY 2.0 via Commons