Time to do away with performance appraisals?

THE announcement last year that General Electric had joined a list of high-profile companies which are getting rid of annual performance reviews has sparked a national dialogue among human-resource professionals about the usefulness of such appraisals - and the alternatives available for deciding who gets pay raises, bonuses and promotions.

Some companies which have stepped away from annual reviews are, in addition to taking other steps, encouraging more frequent manager-employee check-ins quarterly, monthly or even weekly. This could be as simple as a short meeting or a coffee break.

In a knowledge economy, organisations rely heavily on their intangible assets to build value. Consequently, performance management at the individual employee level is essential and the business case for implementing a system to measure and improve employee performance is strong. Management time and effort to increase performance not only meets this goal; it also decreases turnover rates.