Alexander Kjerulf, the author of “Happy Hour is 9 to 5,” filed a 2008 commentary on British employee performance reviews at PositiveSharing.com. He reports, not surprisingly, that no one likes performance reviews, and adds that the review system is “fundamentally broken.”
Joel Spolsky, the CEO of Fog Creek Software, agreed. Among Spolsky's reasons were the fact that although typical employee reviews quantify their results by using numerical scoring systems, they fail to take into account that workers are individuals who have individualized talents, all of which are needed for a team to work effectively.
The commentary goes on to say that supervisors hate and fear employee appraisals and resent them as a drain on their time, while employees distrust them and often leave their reviews demotivated, cynical and without any clear concept of how well they're doing or what they can do to improve their performance. Almost half of the employees who discussed their reviews thought their employers were not being honest. Almost a third said their appraisal was pointless, and one out of five said their boss never followed up on any concerns raised in their review. In short, performance reviews take a lot of time, but according to Kjerulf, it is time that is wasted.
Source: Alexander Kjerulf (Commentary on British Employee Performance reviews)