Do Performance Evaluations Add Value?

Within the past week, I've had two clients ask me about performance evaluation systems. I have some strong opinions about this topic and wrote a blog with my thoughts before deciding that this would be a really interesting topic to ask for some feedback first.

Most HR people will tell you that you need performance evaluations for these 3 reasons:

1. To legally protect the company by documenting the performance of each employee - essentially providing a paper trail that supports future employment actions.

2. To provide positive feedback for good performance and encourage improvement in the areas where development is required.

3. To ensure compensation decisions are based on a structured system that links rewards to performance.

Here are the questions that I have for you:

Question #1. Have you observed a situation where a performance review history successfully supported an employment decision? In what way?

Question #2. Have you personally changed a behavior and/or been motivated to better performance as a result of a discussion that occurred during a performance evaluation? Feel free to share your best and worst experiences.

Please share your comments on this blog. Once I get some feedback, I'll share the blog that I wrote earlier.

Thanks!