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Performance Appraisals Don't Work
Eliminate Performance Appraisals as You’ve Known Them

By , About.com Guide

Am I completely against performance appraisals? Yes, if the approach taken is the traditional one I have described in this article. It is harmful to performance development; damages work place trust, undermines harmony and fails to encourage personal best performance. Furthermore, it underutilizes the talents of HR professionals and managers and forever limits their ability to contribute to true performance improvement within your organization.

A performance management system, which I would propose to replace the old approach, is a completely different discussion. And, I don’t mean renaming performance appraisal as “performance management” because the words are currently in vogue. Performance management starts with how a position is defined and ends when you have determined why an excellent employee left your organization for another opportunity.

Within such a system, feedback to each staff member occurs regularly. Individual performance objectives are measurable and based on prioritized goals that support the accomplishment of the overall goals of the total organization. The vibrancy and performance of your organization is ensured because you focus on developmental plans and opportunities for each staff member.

Performance Feedback

In a performance management system, feedback remains integral to successful practice. The feedback, however, is a discussion. Both the staff person and his manager have an equivalent opportunity to bring information to the dialogue. Feedback is often obtained from peers, direct reporting staff, and customers to enhance mutual understanding of an individual’s contribution and developmental needs. (This is commonly known as 360 degree feedback.) The developmental plan establishes the organization’s commitment to help each person continue to expand his knowledge and skills. This is the foundation upon which a continuously improving organization builds.

The HR Challenge

Leading the adoption and implementation of a performance management system is a wonderful opportunity for the HR professional. It challenges your creativity, improves your ability to influence, allows you to foster real change in your organization, and it sure beats the heck out of “nag, nag, nag".

What Do You Think?

Please let me know what you think. Is your organization ready to toss out the traditional performance appraisal? In future articles, I will discuss the various components of a successful performance management system. In the meantime, I encourage you to think about a change for your own organization and check the following additional resources. Communicate with your Guide and author.

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