Question: Article: An individual is asked to read the article Stop Basing Pay on Performance Reviews found on the Harvard Business Review website and written by
Article: An individual is asked to read the article Stop Basing Pay on Performance Reviews found on the Harvard Business Review website and written by Tom DiDonato in
Summary of the Article: The traditional performance review system, which involves assessing employees' performance and rating them for bonuses or raises, can reinforce hierarchy, undermine collegiality, and become politicized. Learn, a Fortune company, replaced annual performance reviews with quarterly sessions in focusing on gaining new skills and mitigating weaknesses. The change was rolled out to employees across countries, some of which had different cultures. The company believes that traditional performance reviews do little to motivate people and that the way to drive high performance is through honest feedback that employees and managers really hear. The new system greatly improves the feedback process, making it less stressful and more productive than the old performance reviews. Managers are more comfortable giving feedback without fear of backbiting from employees, and discussions tend to focus less on specific accomplishments and more on people skills, which are critical to overall company performance. Although it is too soon to see any impact on the income statement, there has been a noticeable increase in collegiality. The performancereview culture is deeply entrenched, with only of American companies rejecting traditional reviews.
Please answer the following questions thoroughly and succinctly and to the point and provide some examples to justify the individuals way of thinking as well as the individuals reflections and their own experience with performance reviews in answering the questions below.
ps the individual works as a medical administrator at a small private practice.
In what ways does the individual think compensation impacts performance reviews?
Why or why not, should companies tie compensation increases with Performance reviews?
How does the individual think employees would view performance appraisals if compensation was not a part of annual reviews?
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