From the management guide at about.com comes a piece on using Performance Management to avoid layoffs and find the right spots for employees when they’ve been over-promoted. The author, F. John Reh, mentions casually that performance reviews are a waste of time, and I’m inclined to agree with him.
In many cases, performance reviews ARE a waste of time because the processes are too cumbersome, the feedback too non-specific, and the goals unclear. That said, performance reviews can be one of the most potent arrows in the HR quiver if they’re done correctly with the support of a rock-solid process and plain, clear goals.
Those who think performance reviews are worthless are the ones who either can’t handle the feedback, or have never been part of a constructive process.