In an ideal world, the once-a-year, formal performance appraisal review is not the only time during the year when managers communicate with employees regarding their contributions and progress. However, we know that this is how it happens all too often. To make the performance evaluation process less stressful and more productive, frequent conversations help to develop stronger relationships, alleviate surprises, support growth, and help ensure success.

Performance appraisals, when administered properly, also provide a means for organizations to determine which employees have contributed the most to the company’s growth, so that top contributors can be both acknowledged and rewarded accordingly.

Reflect on your previous work experience in which you have observed a performance management system being employed. How were performance appraisals used within the organization? Where else could you see elements of the performance management system being employed?