Apr 4, 2005

Performance appraisal and the rub off on HR

The performance management blog points to an interesting study by PeopleIQ that says that Only 13 percent of employees and managers and 6 percent of CEOs think their organization's performance appraisal is useful. And 88 percent say their current performance appraisal negatively impacts their opinion of HR.

This lead me to think...what would happen if HR palmed off the whole Performance Appraisal shindig?

Let's say, the Finance guy tells the business leads that $ x is budgeted for performance pay. The $x gets divided on the basis of the head count of each business line, and then the head of that business decides on how to hand over these dollars.

Why go thorugh the painful performance process if nobody thinks it adds any value?