For decades, performance management has been measured by performance reviews and the appraisals that follow. However, research findings suggest that 90% of performance reviews are ineffective and end up doing more harm than good.

This is because by constant “constructive” criticism, and little positive feedback, employees feel threatened and low on self-worth which directly affects their work performance.

Moreover, these reviews form an inefficient yet costly method of determining performance appraisals, one that even managers are doubtful about.

Trends in Performance Appraisals

Over the decades, there has been an advancement in the ways companies operate their performance management systems. Earlier, the focus was on retention and deciding which employees deserved reward.

Therefore, the system of traditional appraisals worked well in their favor. However, due to the evolving situation, the trends of assessing employee behavior and performances have changed immensely.

Today, companies want to focus on employee development. Big companies like Microsoft, Dell, and Adobe are already leading the way.

This not only shows that adaptability is the key to stay relevant but also shows the importance of spotting talented individuals in your organization to keep your future secure.

The Decline of Annual Appraisals

Organizations practiced giving out annual appraisals that determined future benefits based on past performances. This often occurred through a one-on-one meeting with supervisors or management, where the employee’s performance, attitude, and contribution were assessed.

This method was disliked by both employees and management. Employees found it inefficient and would rather receive feedback than a number based on performance. And management believed it was an inefficient use of their time.

Therefore, in recent years, a technological shift has occurred in the revolution of performance appraisals. Instead of annual or bi-annual judgment, employers introduced regular reflection, feedback, self-direction, self-organization, etc., to motivate the employees through constant assessment and frequent feedback.

Keeping up with the Times

The way that businesses operate and function has evolved and changed over time. Projects have become shorter, and due to fast-evolving times, expectations from employees change constantly and cannot be predicted.

Rapid innovation determines the success of a company and since future expectations are unpredictable, appraisals based on past performance have become outdated.

Increased Importance of Teamwork

In today’s world, organizations thrive on teamwork. Employees from all departments work together to bring overall success to the company. Individual appraisals, based on individual performance, make it difficult to promote teamwork in the organization.

Performance Management Software

To make performance appraisals simpler, and more transparent, companies are now using performance management software to streamline their processes.

DLI-IT, an IT solution provider, provides HR Management Solution UAE. We make performance appraisal easier and more efficient. Through our performance appraisal system, employees are satisfied due to the transparency, and companies can focus on more important employee-building activities.

For more information, contact us today.