To do or not to do an annual performance review?

I have had my fair share of conducting performance reviews, having been on both sides of the aisle – receiving and giving feedback. It’s never easy. I have a lot of sympathy for managers. Even a slight hint of unfairness perceived by employees can lead to a performance shutdown or losing the dressing room (to use the analogy of a football manager).
To make the case in point, just ask your employees about their feelings towards current performance management practices prevailing in their organisations. Answers like “it’s ambiguous” or even downright “unfair” wouldn’t be out of the ordinary. According to DDI’s Global Leadership Forecast 2015, only 12 per cent of 1,400-plus organisations rate their systems as very effective. Human Resource’s usual response is to implement a new digital performance management system, revise the rating scale (eg from 10 points rating scale to 7 points rating scale or vice versa) and of course the usual culprit a new and easy to understand performance appraisal forms. 
Recently a more fashionable solution is to implement a continuous performance management by companies such as Deloitte, Adobe and GE. Some of the solutions include doing away with force ranking altogether. While other companies focus on the structure and processes of performance management systems by making it more agile. While the jury is still out for these new performance management system initiatives, what is clear however, some of these companies which revamped their performance management systems have experienced improvement in organisation effectiveness.
So, what about the rest of us. Well, if you are interested in fixing your current state of performance management in your organisations where should your start? If you want to evolve rather than revolutionise? If you want to make life easier for your managers? If you want to make it fairer for your employees? 
First and foremost, ensure that clear expectations and goals are agreed upon by both sides. Encourage managers and employees to have frequent performance review conversations throughout the year. Once a year review usually spells trouble. Why? Because we live a in a disrupted world. Priorities change more frequently. Also, employees appreciate instant recognition. Give credit when credit is due. Third but equally important measure is to separate performance reviews and feedback from reward conversations. The moment you combine it, employees will want to hear about the rewards he or she is about to get. Managers lose the golden chance to coach and provide feedback for developing employees’ skills.
Train your managers to be aware of unconscious biases that may occur during performance review sessions. Calibrate the results of performance reviews from manager with the next level managers. Empower your next level of managers to make decisions. Last but not least, gauge your initiatives. Conduct a survey to gather feedback from your employees. How do they feel about the company’s performance management system? If you have a baseline to start with, you should see an improvement. |And your managers’ lives will only be simpler.

Contributed by SUVIT CHANSRICHAWLA, |next-generation HR consultant under the brand Serendipity&Co.