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Reasons for introducing performance review
First let us consider why performance review was originally conceived:
performance review was useful for evaluating the success of training and development initiatives not based on opinion but results
performance review feedback informed the employee how the organisation viewed their performance
performance review could justify reward decisions, including merit increases, promotions, and other rewards
performance review could produce evidence and/or opportunity for career progression
performance review could ascertain training and development requirements
performance review could evaluate the relative individual (or team) contributions in achieving the organisation goals
performance review generated information upon which the organisation could consider its strategies, plans and budgets
performance review generated evidence to evaluate the effectiveness of selection and placement decisions
Of course these "justifications" did not exclude use of other processes therefore it was largely because irregular formal performance review did not provide the dynamics that other processes did that performance review lost its way a little. But there were other reasons why the aspirations of performance review became tarnished:
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