Why do companies performance annual performance reviews

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Reference no: EM132235008

Why do companies performance annual performance reviews?

What do you think the challenges are with an annual review?

What changes do you think would improve the annual review process?

What do you think of SAP’s plans? Will they be successful?

SAP eliminates annual performance review:

The annual performance review is a main feature of HR programs in most companies. Yet, a handful of companies such as Accenture, GE, Deloitte, Adobe, Medtronic, Gap and Microsoft are moving away from the traditional annual performance review and pursuing other methods. SAP, a very successful software company that provides support for cloud based management software that enables thousands of clients to deliver feedback to millions of employees. While it pro-vides support for performance feedback for others, SAP has decided to eliminate annual performance reviews for its workers. SAPs head of HR Wolfgang Fassnacht told Reuters that Grading workers did not work. People are open to feedback, also to harsh criticism, until the moment you start giving scores. Then the shutters go down.” This does not mean that SAP is abandoning all performance feedback. Just the annual reviews are slated to go away. The plan is to replace them with regular discussions on an ongoing basis.

Reference no: EM132235008

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