I have never liked annual performance reviews - either receiving them or giving them when I was a manager. They took huge amounts of time and emotional energty and I always felt that they did far more harm then good. I also got to see them distorted.
I can still remember one year going through the process and my manager submitting the proposed salary increases to his VP - only to have the list come back marked up in red with the VPs adjustments based as far as we could see on who he liked or disiked!
And yet another year having to reassess everyone to fit a predetermined distribution curve.
But slowly companies seem to be waking up:
In big move Accenture will get rid of annual performance reviews and rankings.
As you can see in the article, it is not just Accenture - others too are transforming their performance-review process. About time too :-)