Is it time to abandon annual performance reviews?

(This is part#2 of a series on PEOPLE – see part#1 here)

Managers and leaders have to re-wire their organisations to evolve in order to satisfy these needs and still perform in a competitive and challenging environment. They need to constantly calibrate their purpose in an ever-changing global marketplace.

What is irrefutable, is that the current management practices are failing…and miserably.

A case in point is the annual performance management review – still in vogue today. Whilst even its usefulness as a compliance model for compensation, promotion or termination is questionable, there is little evidence to support its effectiveness in improving either performance or its management.

A major concern is the the year-long time frame gap to provide and receive feedback. It’s just too long! In the current work environment many staff would have entered and exited the organisation between the 12-month cycle.

How does either participant remember, collate and review a year’s work? Is it unreasonable to expect a meaningful discourse given the hour or two usually allocated for such reviews.

Another criticism is the retrospective nature of performance reviews. Looking in the rear-vision mirror on a year’s work can be unfair and arbitrary.

In reality, managers often tend to treat the process as an end-of-year drudgery conducted over a few days through a series of back-to-back interviews. Meeting fatigue is not unusual and conversations tend to skew towards the near-term and recent past.

All of this has resulted in the conventional performance review simply not working. According to OfficeVibe 53% find they do not motivate them to work harder and for 30% it actually decreases performance.