A case for ending the annual performance review

Most employees and managers dread the obligatory once-a-year performance review. So why don’t firms just eliminate the painful practice altogether?

That’s exactly what Samuel Culbert, a professor of management at UCLA, proposes in his book, “Get Rid of the Performance Review!”. Senior Editor Lawrence Rout of the Wall Street Journal also contributed to the book.

While many employers have complained about the practice of performance reviews — few have gone as far as Culbert.

In addition to stating that pay and performance reviews are “merely tools used to intimidate employees,” Culbert also alleges that the practice is:

• pretentious
• fraudulent, and
• ill-advised.

Instead of performance reviews, Culbert believes companies should hold “performance previews” where employers encourage dialogue — and even hold management accountable for employees’ productivity.

Of course, performance reviews are a valuable tool for companies when it comes to avoiding legal problems. Performance reviews are often the most important evidence for firms when it comes to discrimination lawsuits.

What do think about Culbert’s assessment of performance reviews? Share your thoughts with us in the Comments section.