It is often at this time of year that the dreaded performance review is due to take
place. Human nature often dictates that we don’t like to be measured plus there can be fear
of conflict and taking up precious time. This combined with an onerous weight of a form trail
weighs heavy upon our shoulders. We look at the potential benefits of the process and how to
minimise the pain.
Why have performance reviews?
Performance Management is one of the main tools that can be used to manage
performance. The Chinese philosopher, Lao-Tzu once said “a journey of a
thousand miles begins with the first step”. When done well, the review should facilitate a
quality discussion reviewing the individual’s past performance, setting goals for the year ahead,
and form the basis for making development and improvement plans. In today’s economic
environment, ensuring everyone is performing at their highest level becomes even more
The CIPD’s 2004 performance management survey found that 65 % of organisations used individual
annual reviews, 27% used twice-yearly appraisals and 10 % used rolling appraisals. Many
companies use the performance rating from performance reviews to feed into the salary
review/bonus/benefits distribution decision making process. With the recent headlines over
City Performance related pay, plus the number of organisations implementing the review process,
surely they must provide some benefits?
Where it is done positively, the review process can have a number of benefits and beneficiaries as
outlined below. The overriding advantage is that the individual and business performance
should improve as quality feedback improves performance - that benefits everyone.
Benefits and Beneficiaries:
What’s in it for the employee?
What’s in it for the manager?
What’s in it for the organisation?
They know what is expected of them - better understanding
of performance requirements and hw their role/performance interrelates to the business
objectives and performance Improved employee performance & department
performance - Guide individual and team effort to meet overall business needs and
recognise individual contributions Up to date data on organisational
They know what they have to achieve their objectives Problem
resolution People Planning data.
They can discuss with their manager their present job, problems, issues,
their learning & development needs and their aspirations Plan individual
careers including talent identification and retention Improved
communication - Integrated individual, team and company objectives
Introduce relevant & effective training development programmes to meet identified
needs Improved motivation and organisational performance
For a free checklist on how effective performance management
As with all good meetings and discussions, Plan, Do, Review are the key
If you would like further advice on designing, developing and running an
effective Performance Management process, please contact firstname.lastname@example.org
If this is useful to you and your organisation, and you would like more information
then Please Contact Us, we would
be delighted to hear from you