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Performance Evaluations: Why Bother?

In the Nov 17 edition of Businessweek, Claire Suddath states in her article that Performance Reviews are a worthless corporate ritual.http://www.businessweek.com/articles/2013-11-07/the-annual-performance-review-worthless-corporate-ritual.

What Claire failed to grasp is that the performance evaluation process is a function of an organization’s culture. As such, Claire’s article failed to report on how this process has evolved.

In a company where the culture encourages everyone to think and act like a business partner, employees are provided with relevant performance information, equipped with tools to act on the information, provided opportunities to use the tools to take action and given a reason to make improvements (social and material rewards). In this culture of partnership, the performance evaluation process is part of the continuous improvement process. It is viewed by all as an opportunity to review accomplishments and develop plans to improve professional skills and the ability to participate.

Managers have the responsibility to develop the abilities of their employees to contribute and have the responsibility to manage their expectations. In a culture of partnership the performance review process is evolving into an essential tool for developing employee engagement.


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