Generally done once a year, reviews are distorted by two things: office politics & grade inflation.

Managers assessing their subordinates’ performance are to a large extent evaluating their own ability to manage. If they deliver a series of damning verdicts on their team, they are in fact questioning their own ability to manage.

It is true that a number of big companies have announced that they are abandoning PRs. They are: IBM, Accenture, Adobe, Deloitte, GE, Microsoft & Netflix. The reviews are an expensive & complex way of making people unhappy.

PRs are being modified, not abolished:

  1. The practice of sacking the employees with low scores is being abolished.
  2. Annual reviews are being replaced by more frequent ones-quarterly or even weekly.
  3. Pay reviews & PRs are being separated.
  4. Some PRs are turning into performance “previews”, focusing more on discovering & developing employees’ potential than on rating their past work.

Whether done yearly or weekly, PRs are an imperfect method.

My company believes that it is a start-up & is always looking for new ways to increase revenues. My company is an experimenter & a discoverer. It is also small. Daily conversations are the only review.