Why companies are scrapping Annual Appraisal Review Process?

These days Accenture has joined the Elite Club of the companies who scrapped Annual Performance Reviews. Microsoft, Adobe and Deloitte are to name a few giants joined the elite club.

Why do the companies feel the need of moving to new more fluidic system?

1. A Resource’s Performance has to be compared to his previous year rather than his colleagues.
2. The Review was helping what has been achieved in the past year. But it never tell about how we are equipped to achieve the goals in future.
3. The existing system is consuming the time and energy which is yielding half results rather not yielding the desired results..
4. With the existing system, even though all the team members performed very well, needed to adjust in the defined curve.

How the new system should work?

1. It will be more matured, transparent and employee friendly process which takes care of the employee motivation as a by-product.
2. This will force the managers to set short term goals and provide opportunities. And making sure that they are using coaching, mentoring techniques to improve the skill set of the team.
3. It is like, provide opportunities, if not create and mentor coach the employees and validate against the new responsibilities.
4. With the above, the employee will have some thing to learn and put it in practice immediately.
5. With the old approach, even though managers set goals for the year, it may not happen that goals will be revisited and validated to mentor and coach accordingly. This new process will enforce the managers to do so.
6. Unlike the older system, employees will not be compared with their colleagues, so there high likely chance of they getting demotivated as the abilities and natural intelligence of each individual will be different.
7. As per the new system, every employee is supposed to get a new opportunity or change in responsibilities than the previous year, the system enforces the managers to do a thorough skill set analysis and look for the opportunities to be given, if not to be created.
8. The above enforces the managers and their managers think out of the box and create opportunities. In turn, it will be spiral push the thought process to the highest level in the organization and the respective industry.
9. Thus, as every employee will be in a learning and implementing mode, they will be with free mind spitting our great ideas which will help ideas pushing upwards.

Accenture’s story