Benefits and costs of new performance review system

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1. Recently, companies such as Adobe, Microsoft, Deloitte, Gap and even General Electric, the longtime role model for traditional performance appraisals, are replacing annual reviews with frequent, informal check-ins between managers and employees. Which of the following is could be a challenge or problem for that a company would do so?

a. Getting rid of evaluations doesn't eradicate bias, since managers still evaluate employees subjectively and informally

b. These frequent informal check-ins may affect the pay for performance model, which is still commonly used by these companies

c. Supervisors are still required to identify problem employees, getting rid of appraisals does not necessarily make these tough calls easier

d. Without formal and "objective" forms of performance evaluation, discrimination charges may spike if companies basing pay increases and promotions on informal check-ins

2. What are the disadvantages of using subjective measures in performance evaluation? Can objective measures of performance provide a perfect antidote to these pitfalls?

3. What are the benefits and costs of the new performance review system at Vitality Health? Should this new system be revised? What changes would you recommend?

Reference no: EM133026800

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