Performance reviews are awkward and biased. They stick people in boxes
and leave them waiting far too long for feedback. It’s no wonder that by
the end of 2015, at least 30 of the Fortune 500 companies had ditched
them altogether. But even when companies get rid of performance
evaluations, ratings still exist—employees just can’t see them. Ratings
are done subjectively, behind the scenes, and without input from the
people being evaluated. Employees’ contributions to the organization
over time need to be assessed in some way. Decisions about pay and
promotions have to be made. In the absence of formal evaluations, those
decisions are made in a black box. Facebook has chosen to hang on to
evaluations despite their costs to help ensure fairness, transparency,
and talent development. When the company analyzed its performance
management system a few years ago, it conducted focus groups and a
follow-up survey with more than 300 people. The feedback was clear: 87%
of people wanted to keep performance ratings. They wanted to know where
they stood. Evaluations were put into place for good reasons; getting
rid of them might be an overreaction to poor execution. Leaders at
Facebook think it’s more constructive to mitigate the risks by building a
culture that recognizes and rewards growth. [ABSTRACT FROM AUTHOR]