Performance Reviews: Is There a Point?

Performance reviews can be difficult, stressful, informative, motivational, and sometimes even ridiculous. We've all probably had good ones, inaccuarate ones, nice ones, or ones that never address our true roles within the organization. This Week with Sara Fitts takes on the performance review and offers perspectives for both sides of the table - for the giver as well as for the receiver of them.

In my limited research, the use of performance reviews in small businesses is extremely varied. Some businesses never use them for a variety of reasons - and other businesses use them every quarter for all staff members. Whether given annually or at other increments of time, there really can be benefit of the performance review - benefit to the business as well as to the employee.

Some performance reviews are given to justify pay raises while others are given to justify firings and lay-offs. Sometimes performance reveiws are used to justify the business itself and to look at the results over a period of time. Sometimes investors want to see how well their investment is really working - and performance reviews can be used as justification for change.

Throughout the week I will post several perspectives on performance reviews - and how we can use them better to create more successful businesses. As for now, here are my questions to you:

1. Do you use performance reviews in your small business? What is the cycle or calendar for them?
2. What is your point for using them?
3. Do you use a standard format - or do you use one that is exclusively yours?
4. What do your employees think of their performance reviews?
5. Do you base pay raises on them? Do you use them to terminate employees?

More to come later . . . .