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To do or not do performance appraisals? These pros and cons will help you answer this question

by , 11 July 2014
When you mention the words 'performance appraisals', you're bound to get conflicting views.

For example, some people say employers must get basics right when doing appraisals, some suggest new ways of doing the same thing. But the most extreme view comes from those who argue appraisals should be abolished.

We've noticed that this view is gaining momentum.

As a result, our experts have done some research on the pros and cons of abolishing performance appraisals so you can decide what's best for your company when it comes to performance management.

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Here are the four key advantages of abolishing appraisals

#1: Experts at the Practical Guide to Human Resources Management say abolishing appraisals makes it easier for managers to change direction and goals if the current environment requires this.

#2: Everyone's time is freed up to do their job.

#3: It reinforces a culture of teamwork, dialogue and learning.

#4: Employees work towards achieving company objectives instead of merely satisfying the boss.

Now let's take a look at the disadvantages of doing away with the appraisal.

The key disadvantages of abolishing appraisals are as follows

#1: You may have to revise your remuneration policy and how it links to performance.

#2: You'll have to train everyone in your company on giving and receiving constructive feedback.

Overall, the answer to the question: Should you do away with performance appraisals depends on:

  • Whether the culture of your company will support a formal or informal/systemic approach.
  • The dissatisfaction of employees and managers with your current system.
  • If you can enhance your current approach to the level where it'll contribute towards your company's performance.

The bottom line: Abolishing performance appraisals might not be the answer for every company. We hope these pros and cons will help you decide what's best for yours.

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