Performance Reviews
Formal assessments of employee performance, typically conducted annually or semi-annually.
Also known as: Performance Appraisals, Performance Evaluations, Annual Reviews
Category: Techniques
Tags: management, feedback, development, human-resources, performance, careers
Explanation
Performance reviews are structured evaluations of an employee's job performance and contribution, typically conducted at regular intervals. While often criticized, well-designed review processes remain important for feedback, development, and organizational alignment.
Purposes of performance reviews:
1. Feedback - Provide clear assessment of performance
2. Development - Identify growth areas and create plans
3. Recognition - Acknowledge contributions and achievements
4. Alignment - Connect individual work to company goals
5. Compensation - Inform decisions about pay and promotion
6. Documentation - Create a record for HR purposes
Common review formats:
- Annual reviews (traditional, often criticized as too infrequent)
- Semi-annual reviews (better frequency)
- Continuous performance management (modern approach)
- 360-degree feedback (multi-source input)
- Self-assessments combined with manager ratings
Components of effective reviews:
1. Backward-looking: What was accomplished?
- Goals achieved vs. set
- Key accomplishments
- Areas needing improvement
- Demonstrated competencies
2. Forward-looking: What's next?
- Goals for next period
- Development priorities
- Career aspirations
- Support needed
Best practices:
- No surprises - feedback should be ongoing throughout the year
- Specific examples, not vague generalizations
- Balanced - acknowledge strengths and growth areas
- Two-way conversation, not a monologue
- Document agreements and action items
- Follow up on development plans
Modern trends:
- Continuous feedback replacing annual events
- Separation of development from compensation discussions
- More frequent, lighter-weight check-ins
- Real-time feedback tools and apps
- Focus on growth mindset and coaching
Common pitfalls:
- Recency bias (only remembering recent events)
- Halo/horn effect (one aspect colors everything)
- Central tendency (rating everyone average)
- Comparing employees to each other, not expectations
- Making it one-directional (no employee input)
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