Performance Appraisal Doesn't Work
Personnel Today recently published a detailed article on research into the effectiveness of Performance Appraisal and Performance Related Pay. Their conclusion - it doesn't work.
To quote ...
"Data from CEB confirms that HR directors themselves have long distrusted the appraisal process. It finds that the average manager spends more than 200 hours a year on activities related to performance reviews, but a staggering 90% of HR leaders feel the process does not yield accurate information."
"...psychologists at Stanford University (studying 607 performance evaluation processes) found that labelling people on a performance scale actually worsens employee (and hence organisational) performance."
Well worth a read, see the full article here.
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