POWER PLANT Management Roundtable

April 27, 2009

Let's Trash Employee Performance Reviews

Pages: 12
Is the venerable periodic employee performance review really a useful management tool? Management sciences guru Sam Culbert doesn’t think so. “I see nothing constructive about an annual pay and performance review,” he said in a Wall Street Journal article last year. Performance reviews, he said, are “bogus.”

Negative Reviews

Culbert, professor of management at the University of California at Los Angeles, says, “To my way of thinking, a one-side-accountable, boss-administered review is little more than a dysfunctional pretense. It’s a negative to corporate performance, an obstacle to straight-talk relationships, and a prime cause of low morale at work. Even the mere knowledge that such an event will take place damages daily communications and teamwork.”

A long-time, mid-level worker in an energy consulting firm told MANAGING POWER recently, “I went in for my annual performance review a month ago. It went well, and I thought I got a pretty good review. When it was over, my supervisor said, ‘By the way, we’re letting you go.’ I was gob-smacked, and I never did get a straight answer why they fired me.”

That’s confirmation of Culbert’s view of performance reviews, discussed in detail in his recent book, Beyond Bullsh*t, Straight Talk at Work (Stanford University Press). While the purported purpose of performance reviews, he says, is to instruct subordinates in how to perform better, “I see it as intimidation aimed at preserving the boss’s authority and power advantage. Such intimidation is unnecessary, though: the boss has the power with or without the performance review.”

Pages: 12

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