Microsoft has ended its controversial but popular "stacked" performance review system, and they're not the only technology company to update its review program. Prior to Microsoft, Expedia and Adobe Systems ended their own performance review programs, according to Businessweek.
Where should these organizations go from here? While some are using applications to assess employee performance, many of these leading technology firms are working toward the use of 360 degree performance reviews, CIO Magazine explained.
Instead of having a two or three person conversation on how an employee performed throughout the quarter or year, the employee receives feedback from an array of other people. This approach is much different from anonymous surveys because the attention is directed from a general population to a specific individual, also known as a micro assessment.
What makes 360 degree feedback a much more helpful performance review method than others is that there is no perfect way to go about it, but it directly links one's strengths or weaknesses to his or her performance.
"Personal accountability is easier with a 360 degree assessment," CCI Surveys International president Larry Cipolla wrote.
The technology sector is going through a significant amount of change in terms of how it manages data, provides access to employees and changes how consumers complete day-to-day tasks. Therefore, it is imperative to identify ways to improve performance. Underperforming workers drain resources and impact team success: being able to identify the cracks is an important step towards building a solid foundation.