Annual performance reviews have been abandoned by SAP, a German-based company that used to grade the performance of millions of employees across the globe saying that it is often demotivating, expensive and time-consuming. Annual appraisal is falling out of style with organizations such as Gap, IBM and even General Electric, whose CEO has started and popularized this trend.
The trend that began across the Atlantic was been joined by SAP the European company among a few. The company led by an American CEO and almost a third of the staffs are employed in the United States. The formal of the annual performance review is very much not liked by employees. With its focus on separating over from under-performers was frequently not very productive to the objective of constructive dialogue said, SAP’s human resources head Wolfgang Fassnacht said Europe’s biggest software maker.
Until the moment we start giving scores, people are open to harsh criticism and feedback and grading workers didn’t work. Then the shutters go down. With check-in-talks coming more regularly the company has introduced SAP. As of now, there are only 8,000 employees and the aim is to implement it globally for all of its 80,000 workers.