This taken from Forbes... The article was published in Nov 2016. The source link is below...
Performance reviews might have been declared dead by social media a long time ago, but they are still alive at Facebook – the company.
There’s a good reason for it: management thinks that performance reviews are by default the most practical way of evaluating employees–just because other systems that have been tried are worse.
And it turns out, 87 percent of Facebook employees agree – and want to keep performance reviews.
That’s according to a recent article, “Let’s Not Kill Performance Evaluations Yet: Facebook’s experience shows why they can still be valuable,” published in the November 2016 Harvard Business Review.
Apparently, Facebook management sees in performance reviews advantages others are missing – like fairness, the mother of all values, according to Aristotle. “A fair process exists when evaluators are credible and motivated to get it right, and employees have a voice,” say Lori Goler, Janelle Gale, and Adam Grant, the authors of the HBR article. “Without evaluations, people are left in the dark about who is gauging their performance.”
Facebook management also sees another advantage in performance reviews: transparency, the basis of corporate trust.
“People want to know where they stand, and performance evaluations offer transparency,” continue Goler, Gale and Grant. “They help employees understand how their contributions are seen in the organization, and they make it easier for the organization to effectively recognize and reward top performance.”
Wait, there’s one more advantage: corporate development, the basis for corporate growth and renewal. “Employees learn what their key strengths are and where they should focus their development efforts,” explain the authors. “Evaluations also serve as a forcing function to make sure that though feedback is delivered rather than swept under the rug.”
In short, while performance reviews have all sorts of disadvantages — as pointed out clearly and loudly in social media – they have advantages, too, which make them a better system than the alternatives. At least that’s the case in Facebook where even the employees like them.
And it seems Facebook stockholders must agree. The stock has been a stellar performer in recent years.
- Source: http://www.forbes.com/sites/panosmourdoukoutas/2016/11/12/performance-reviews-are-still-alive-in-facebook/2/#557504242b4b