Appraisals

Formal appraisals are an integral part of just about any organization’s performance management process. Dreaded by employees and managers alike, appraisals are generally touted by human capital management professionals as key in increasing productivity. There are a wide range of appraisal solutions out there, which are mostly designed to make managers and employees hate the process less, and make it a little more likely that the system will be used according to design.

Ultimately, the primary purpose of the performance appraisal process is to manage employee performance. So are there other ways to manage performance?

The key to managing performance is feedback. Feedback can be handled in any numbers of ways, and doesn't have to be a formal process at all. In an ideal world, where feedback is a constant occurrence, clearly communicated and reciprocated, perhaps you could do away with a formal performance management system, but the reality is that such systems serve more than one purpose. For one thing, they serve to demonstrate that conversations concerning performance have occurred, and to document the key points of the discussion. Should you ever need to terminate an employee for cause, this and other documentation will prove to be critical in determining whether or not proper cause exists (hint: it’s pretty rare outside of cases of serious misconduct) .

In an organization with a very high level of trust between colleagues, where open and honest communication and feedback is a part of everyday working life, perhaps a case can be made that formal appraisals aren't necessary from a feedback perspective, whether they are 360s, online, or otherwise. However, they will always be necessary for documentation, in the absence of a world where all employees are good ones, and thus, managers and employees alike better just resign themselves to the fact that they really aren't going anywhere.