The End of Annual Performance Reviews: Are the Alternatives Any Better? - Knowledge at Wharton

Recently, Adobe, Kelly Services, GE, Deloitte and PwC have ended annual performance reviews, and the rippling out to smaller firms and other sectors appears to be underway. To which many say: good riddance. “It’s a big change, the extent to which it seems to be happening, and it’s happening broadly,” says Wharton management professor Peter Cappelli, who has researched the usefulness and accuracy of performance reviews. What’s happening now is nothing less than a revolution in performance management systems, he notes, and for companies that take it seriously, “it’s a fundamental change in the way to manage your employees and the relationship with them.” There is one other aspect of the performance management revolution that has become de rigueur, and quite useful. http://knowledge.wharton.upenn.edu/article/the-end-of-annual-performance-reviews/