Yet again we have a credible source saying we should do away with the Performance Review. In late 2008, UCLA Professor Samuel Culbert offered seven reasons why performance reviews are "ill-advised and bogus." Among those reasons: Performance Doesn't Determine Pay, Objectivity is Subjective, Personal Development is Impeded, and Disruption to Teamwork.
Culbert has now released a book titled "Get Rid of the Performance Review: How Companies Can Stop Intimidating, Start Managing – and Focus on What Really Matters" in which he makes the case that performance reviews "produce no results of any value."
But if you don't conduct performance reviews how do you manage performance? Before answering that question, let me give you an example from my experience of where performance reviews clearly did not produce results of any value.
One services organization of about 250 account executives I worked with was coming up short on their revenue goals. With a little digging and some analysis, I learned that almost 20% of employees were not delivering results equal to or better than their goals. This was happening consistently with credible and achievable goals. The surprise was that almost 80% of these under-performers had received acceptable performance reviews.
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