The Pie: An Economics Podcast
Should Performance Reviews Be Scrapped?
Mar 14, 2025
Stacey Kole, an Economist at Chicago Booth and expert in workplace management, joins the discussion on the value of performance reviews. She highlights the anxiety caused by traditional evaluations and questions their overall effectiveness. Through engaging case studies, she advocates for clearer objectives and a collaborative approach to performance assessments. Kole argues for frequent communication between managers and employees to foster meaningful feedback, ultimately linking individual performance to the organization's mission.
27:50
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Quick takeaways
- Performance evaluations can enhance skill development and guide career progression when clearly defined and strategically aligned with organizational goals.
- Adopting a continuous feedback model instead of periodic reviews fosters real-time communication, improving employees' understanding of their roles within company objectives.
Deep dives
Understanding the Purpose of Performance Evaluations
Performance evaluations serve multiple purposes beyond merely tracking employee performance. They can help identify skill development, guide career progression, and serve as a foundation for organizational strategy. Many companies fail to define their objectives behind these evaluations, leading to ineffective processes. For example, a CEO revamped their company’s evaluation system from over 100 questions to fewer than 20 focused inquiries, allowing for clearer communication and improved employee performance.
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