yearly performance review is out-dated

from an article in Wired by Thomas Goetz, How Facebook Uses Feedback Loops: Meet Rypple.

 

How does Facebook keep its employees happy? Feedback. Lots and lots of feedback.

….
“Workplace productivity has been stuck to a 50-year-old, paper-based performance-review cycle,” says Daniel Debow, Rypple’s co-founder and co-CEO.

….
“Our company has always been built around feedback loops,” says Facebook engineering director Bob Trahan, who counts himself as employee 45. “Everything we do in engineering is reviewed: Engineer A reviews what Engineer B does. We have design reviews twice a week. We track performance metrics for code, in terms of speed and time.”

….
The whole process of managing employee performance and providing feedback has been in need of an overhaul for some time. The 360-degree review was popularized in the 1990s
….
“three-sixties” have many limitations, the biggest of which is that they typically happen only once a year.

In 2000, Jai Ghorpade, a professor of management at San Diego State University, conducted a review of more than 600 employee feedback studies, only 30 percent of which showed improvements in employee performance. Another 30 percent reported decreases in employee performance after a feedback review, and the rest reported no impact at all. “While it delivers valuable feedback, the 360-degree concept has serious problems relating to effectiveness,” Ghorpade concluded.

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