All too often, I have seen the annual performance evaluation show up in a trial as a Plaintiff's exhibit, rather than what you would think should be true, that it ought to be the best evidence for the employer, particularly if the subject of the lawsuit is a dismissal for poor performance.
And I have been saying this for some time now, see this 2005 post: Just a Reminder About Those Performance Appraisals - Often Known as Plaintiff's Exhibit #1.
So I am never upset when I see that a major employer has chosen a different path. See Accenture To Nix Performance Reviews and Rankings For All 330,000 Employees. I particularly liked the explanation by the CEO, that the alternative is a more fluid on-going feedback after each significant interaction.
Makes sense to me.
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