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Corporations moving away from performance reviews

Friday, July 31, 2015

Major corporations such as Accenture, Gap and Microsoft are moving away from performance reviews, saying research shows such reviews are not objective and are bad for staff morale.

Managers have incentives to inflate appraisals; even accurate feedback can feel biased and unfair, making people less motivated and hurting relationships between supervisors and subordinates; and organisations don’t do a good job of rewarding good evaluators and sanctioning bad ones. “As a result, annual appraisals end up as a source of anxiety and annoyance rather than a source of useful information,” Scientist Kevin Murphy says. See the full New Yorker article here.

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