Importance of Performance Review in HR Policies

Running head: PERFORMANCE REVIEW
PERFORMANCE REVIEW
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1PERFORMANCE REVIEW
Introduction:
This paper aims to discuss the HR policies discussed in four very important articles
which focus on the performance review of the firms and their importance in improving the
performance of the whole firm. Performance management is one of the most important issues in
the human resource department of any type of business. For the managers it is important that
they can effectively motivate the employees, gain great understanding of the strength of their
subordinates, increase competency of the workforce gain benefit of ensuring positive
communication to the employees about the performance of their employees. The authors of this
particular articles have analyzed the usefulness of adopting a broader view of the performance
management.
Cappelli, P. and Tavis, A., 2016. The performance management revolution. Harvard
Business Review, 94(10), pp.58-67.
To this study, the current business leaders are not taking interest in this traditional
performance appraisals. This process has been abandoned by the US companies operating in any
sector. The annual review of the organizations is the main limitation as this emphasizes on the
holding the workers responsible for their actions of the previous year at the expenses for
improving their performance in the present and future (Cappelli and Tavis 2016). This method is
quite unscientific to the authors of this article who have identified that many of the international
organizations are changing their method of managing the employees. They are becoming more
frequent and development focused connection with the employees. This is the reason why the
recent organizations are becoming more hybrid and following the third way of amalgamating
useful sides of the performance management emphasizing on the development feedback. The
appraisals of the employees have been changing its focus as the accountability of the workers is

2PERFORMANCE REVIEW
losing its relevance and development of the skills is gaining importance. In this study, the
authors have pointed out different examples of the important international brands and discussed
their own method of employee appraisals. This third way is useful in the talent research and
retention of skilled labor in the company.
Findings- the authors of this particular article have explained how the performance
management has changed over time and affected the current thinking process of the business
leaders. The tight labor market in this recent era has led to feel a tremendous pressure on the HR
department as the competition level high quite high in this business context. The demands of
skilled and already experienced labors are increasing but the supply is much less (Cappelli and
Tavis 2016). The HR managers are compelled to keep their employees happy and satisfied. They
are grooming their employees so that they can work for their own advancement and do not leave
the organization. In addition to this, the rapidly changing business environment of this current
setting needs nimbleness and agility which supports that the management needs to take care of
the regular check ins of the employees in the organization. The changing nature of the business is
needing team work and collaboration therefore, by prioritizing the improvement over the
accountability the companies are promoting teamwork. This changing method of performance
management, have not however solved the issues like aligning the employees with the
organiostioanl goals, identify the poor performers, solve the issues associated with
discrimination and awarding the meritorious employees. This is the reason why the companies
are trying to apply the hybrid approaches so that the positive side of both these old and new
methods can be utilized in the development of the corporation.
The bottom line- this study finds that the HR policies of amalgamating the traditional
method of performance review and the newer method of employee perforce measurement is