Performance Analysis : Performance Management Essay

2272 Words10 Pages
Annual performance reviews are not an effective form of performance management system to measure the employee’s performance because they can be biased, waste of managerial time, too sporadic to make a lasting impact, and can affect the employee’s behavior. All companies strive to be successful at meeting their company goals in a time efficient manner. As time goes on, companies are realizing the key to a successful business is happy employees. Companies must experiment with new methods to find the right process of evaluating employee performance and ensuring that success continues. Many companies use performance appraisals to relay information to the employees about their performance level within the company. Annual performance appraisals are so prevalent that 72% of companies use them to measure employee performance (Fawcett). Though the success of the review to motivate and improve employee performance, greatly depends on how well the manager executes the appraisal. Performance appraisals are important to companies but, the question of at what cost to the employee should it continue still continues to linger.
The annual performance review is a formal discussion about an employee’s development and performance. The review involves a planning process to establish an effective element of performance management systems. The purpose of the annual performance review is to set a plan of action for the future, while reviewing what has occurred in the past year. (Derek Stockley)
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