HBR Guide to Performance Management (HBR Guide Series)

CHAPTER 12

The Case Against (and for) Annual Appraisals

Performance appraisal is a formal method for assessing how well an individual employee is doing with respect to established goals and expectations. These reviews have traditionally been conducted annually, though some organizations do offer them semiannually or quarterly, and they often include informal follow-ups as needed. Appraisal sessions are both a confirmation and a formalization of the ongoing feedback and development discussions that should be part of every manager-employee relationship.

Performance appraisals are not widely beloved, particularly by those being evaluated. In fact, they’re probably the most stressful work conversation an employee will have all year. Even star performers ...