Performance Review and its Effects on Employee Performance

This article discusses the concept of performance review and its effects on employee performance. It highlights the benefits and drawbacks of performance reviews and the importance of using them effectively. The article also references W. Edwards Deming's book 'Out of the Crisis' and his views on the long-term usage of performance reviews.

Running head: PERFORMANCE REVIEW AND ITS EFFECTS
Performance Review and its effects
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1PERFORMANCE REVIEW AND ITS EFFECTS
Employee performance has gained unprecedented prominence within the mould of the
modern business world and it is seen that the diverse organizations utilize different strategies
like total quality management, motivation and others for the enhancement of the same
(Anitha 2014). Shields et al. (2015) hold the viewpoint that employee performance is
important because of the fact that the sum total performance of a business enterprise is
directly correlated with the aspect of the individual performance of all the employees of the
organization. More importantly, Mone and London (2018) are of the viewpoint that with the
increasing focus of the diverse organizations on the aspect of profitability and the net revenue
generated by them this notion has become important. However, at the same time, it needs to
be said that the concept of employee performance cannot be quantified just like the other
aspects or the entities of an organization (Hodge 2018). There are various factors which
determine the performance level of an individual like the kind of job role that they are
performing, the kind of training which has been provided to them, the leadership style of the
organization, organizational culture and others (Anitha 2014). In this light performance
review gains special prominence and various arguments have been made for and against it.
This reflective essay will discuss about performance reviews and the effect that they have on
the organizations in the specific light of the arguments raised by Deming in his book “Out of
the Crisis”.
The aspect of performance review is important within the context of the modern day
business world because of the fact that it is directly related to the aspect of the individual
performance of the employees (DeNisi and Smith 2014). Laforet (2016) is of the opinion that
the construct of performance review helps the organizations to quantify the performance of
the individual employees of their organization and measure it. I believe that this is important
from the perspective of the organizations since apart from the financial report and other
measures it gives an idea to the organization whether they are making progress or not.

2PERFORMANCE REVIEW AND ITS EFFECTS
Furthermore, this at the same time provides them the opportunity to improve on the aspects
on which the employees are not performing on par with the expectations of the organization
(Adler et al. 2016). However, Van Dooren, Bouckaert and Halligan (2015) are of the opinion
that the various performance reviews only take into effective consideration the data or the net
performance of the employees and often fail to take into effective consideration the
contributions that the employees have made towards the organization. I also believe that the
organizations need to take into effective consideration the effort that an employee has made
towards the improvement of the performance of his or her colleagues.
Buchanan and McCalman (2018) have stated that the performance reviews are not
taken in the right light by the various individuals and as a matter of fact it is often seen as a
criticism of the work that they have done. I personally believe that the employees need to
take the performance reviews which are being provided to them as a kind of positive criticism
and also to work on the feedback that has been provided to them through the review in the
right light so that they can further improve their performance. It is pertinent to note that in the
latter part of the 20th century various kinds of researches have done on the concept of
performance reviews and I personally believe that one of the most important works which has
been done on the topic under discussion here was by W. Edwards Deming. In his famous
work “Out of the Crisis” published in the year 1982 he argues that “Performance review
nourishes short-term performance, annihilates long-term planning, builds fear, demolishes
teamwork, and nourishes rivalry and politics” (Deming 2018). Furthermore, I found that the
book can also be seen as a groundwork wherein he states the manner in which the
organizations need to integrate the social as well as the economic factors to improve their
performance. In addition to these, the book also lays bare the benefits as well as
disadvantages of the use of the process of performance reviews.

3PERFORMANCE REVIEW AND ITS EFFECTS
I found that the ground breaking book of Deming clearly indicates the pitfalls of the
use of the construct of performance reviews. The primary focus of Deming in the book under
discussion here is on the long-term as well as short-term benefits of the effective usage of the
construct of performance reviews (Deming 2018). Bradler et al. (2016) have stated that the
construct of performance reviews to be a beneficial one and are of the viewpoint that the
effective utilization of this particular construct not only helps the organizations to measure as
well as the analyze the performance of the employees but also to improve the same.
However, Deming (2018) is of the viewpoint that the long term usage of the construct of
performance reviews can have disastrous results for an organization. For example, I found
that the book states that the construct of performance reviews if utilized on a short-term basis
can not only help the organization to improve the performance level of the individual
employees of the organization but at the same time can help the concerned organization in a
significant manner to attain a higher rate of growth as well. It is seen that the various business
enterprises of the present times like Starbucks, Woolworths Limited, Wesfarmers and others
are taking the help of the construct of performance review on a short time basis to improve
the performance of the employees in a substantial manner (Kearney 2018). I believe that the
effective usage of this particular construct is one of the major reasons for the unprecedented
success that these organizations have been able to attain within a very short time.
The benefits of the effective usage of the construct of performance review,
notwithstanding, Deming points out the various negative aspects of the long-term usage of
the same(Deming 2018). In the book under discussion here, I found that Deming explicitly
states that the long-term usage of the construct of performance reviews not only takes a toll
on the culture which is being followed within a particular organization but at the same time
affects the structure of the organization as well. For example, it is seen that the employees
take the various performance reviews in a personal manner and this takes a toll on their

4PERFORMANCE REVIEW AND ITS EFFECTS
productivity (Khanna and Sharma 2014). Furthermore, I believe that the construct of
performance reviews is being used as a means of motivating the employees of the
organization. For example, it is seen that if a particular employee has got a good performance
review then this actually motivates him or her to perform in a much better manner (Khanna
and Sharma 2014). However, at the same time, it is seen that if an employee has not got a
positive performance review or is not performing as per the expectations of the organization
then by looking at the appreciation or the benefits which are being given to the employees
who are performing as per the expectations of the company they feel motivated to perform in
a better manner (Buckingham and Goodall 2015). Thus, I would say that the tool of
performance review if utilized in an effective manner can really contribute in a significant
manner towards the growth of the organization. However, at the same time it is seen that the
long-term use of this particular construct can even destroy the culture of the organization as
well.
Adler et al. (2016) hold the viewpoint that the culture which is being followed within
the mould of an organization directly affects the performance level of the employees.
However, I am of the viewpoint that excessive focus on the aspect of employee performance
can affect the culture of an organization in an adverse manner and this can take a toll on the
overall productivity of an enterprise in the longer run. For example, it is seen that too much
focus on the factor of employee productivity leads to the creation of a competitive culture
within an organization where the internal competition among the employees is very high
(Bradler et al. 2016). This not only affects the engagement level of the employees but also
their ability to work in a collective as well as synchronous manner. I personally believe that
the overall productivity of an organization not only depends on the individual performance of
the employees of the organization but also on the ability of the employees to work in a
cumulative as well as synchronous manner. However, with the long-term use of the construct

5PERFORMANCE REVIEW AND ITS EFFECTS
of performance reviews and also reliance on the entity of performance review can hinder the
future prospects of an organization in a substantial manner by adversely affecting its
organizational culture (Shields et al. 2015). Furthermore, this not only gives rise to
unnecessary rivalry among the employees of the organization but also it is seen that the
employees end up taking the help of politics and perform unnecessary planning and plotting
to gain a leverage over the other employees.
Recent researches have shown that the long-term usage of the concept of performance
reviews by adversely affecting the culture of the organization affects the structure of the
concerned organization in an adverse manner as well (Hodge 2018). For example, the sole
reliance on the concept of performance makes the individual’s focus on the quantification of
their performance and they stop contributing towards the growth of the organization in an
effective manner (Buchanan and McCalman 2018). I believe that it is the job role of a tenured
employee to help the new employees or the employees who are not being able to perform on
par with the expectation of the company to help them to perform in a better manner.
However, with the sole focus on the quantification of performance the employees lose their
inherent desire to help others and thereby contribute in a positive manner towards the growth
of the organization and focus solely on their individual performance (Khanna and Sharma
2014). The net result of this particular aspect is that the employees fail to work in an effective
manner as per the needs of the team and the organization that they are working for and this
can have disastrous results for the organization in the longer run.
I would like to say that the construct of performance review as per Deming and the
research works conducted by the other scholars has proved to a beneficial one for the various
organizations if used in an effective manner on a short-term basis. Thus, the organizations
need to use the construct of performance review in an effective manner so that they are being
able to reap the benefits of the effective usage of this particular construct while mitigating the

6PERFORMANCE REVIEW AND ITS EFFECTS
adverse effects of the same. It is precisely here that the book of Deming “Out of the Crisis”
gains prominence since in this book he suggests the manner in which the various
organizations need to use this construct. He says in the book “Long-term commitment to new
learning and new philosophy is required of any management that seeks transformation. The
timid and the fainthearted, and the people that expect quick results, are doomed to
disappointment” (Deming 2018). Thus, it can be said that the focus of the organizations
should be on the aspect of learning and satisfying the needs of the employees rather than
solely on the entity of performance. The human resource management team of the
organization needs to not only provides the required training to the employees but also to
motivate them so that they are being able to perform in a better manner (Khanna and Sharma
2014).
To conclude, the construct of performance review has emerged as one of the most
important ones within the mould of the business world of the present times by virtue of its
association with the concept of employee performance. The effective usage of this particular
construct no doubt provides various benefits to the organizations and often helps them to
motivate the employees to enhance the level of their job products. However, at the same time,
it is seen that the long-term usage of this particular construct can have disastrous results for
the organizations and rather than providing benefits to the organizations often becomes the
reason for their failure. Thus, it can be said that the organizations need to use the construct of
performance review in an effect manner so as to mitigate the negative effects and take
advantage of its positive aspects.

7PERFORMANCE REVIEW AND ITS EFFECTS
References
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8PERFORMANCE REVIEW AND ITS EFFECTS
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