If things are running smoothly, there's nothing like the dreaded "Annual Performance Review" to throw a wrench in the works.
For my money, they're a lose-lose. Managers somehow try to improve an employee's performance by pointing out all the mistakes he or she made over the past year. The employee, believing they've done nothing but great work, wants to talk about a pay-raise and a promotion.
Is it any wonder that what should be a productive discussion quickly becomes defensive and tense?
Attached is an article from the October 20, 2008 Wall Street Journal written by a UCLA Business School Professor who has the right idea: get rid of performance reviews that destroy morale and kill teamwork and replace them with ongoing dialogue where both sides learn and grow: Download get_rid_of_the_performance_review.pdf