The annual fiasco of the performance review continues in many organisations despite evidence that it has the potential to be one of the most effective management tools in the entire executive toolkit. Senior executives in many countries indicate that they regard the performance review (particularly the part where they are required to have an open and honest dialogue with the people who report to them) as one of the most difficult things they are required to do. Perhaps that is why so many do not do it at all! While the number of organisations that utilise their performance review programmes is increasing, a virtually useless version of form filling‐in and filing that has become the annual fiasco of so‐called performance review continues in many organisations. The message is clear. People make the difference and the successful enterprises of the current decade will have an integrated performance management programme that effectively links corporate strategy and individual performance.
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