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My blog post today, Illusions - Optical and Other, is related to this topic, though in a way that may not obvious to some. Performance management suffers greatly from people beliefs that are not supported by evidence (ascribing causation where it does not exist...). Peter Scholtes: Leader's Handbook provides an excellent guide to how managers can manage performance and as the 9th chapter of his book indicates (Performance without Appraisal) performance appraisal schemes are not the answer.
Personally I vote for the first title.
John: Excellent post. I'm a big fan of Peter Scholtes' The Team Handbook...I used that quite a bit at one time when I worked in industry and we were doing quality pushes. So true with Dr. Deming and Sholtes that appraisals don't work. It's not how we run our da-to-day lives, but we are told in management that performance reviews are the way to go. Hmmm...
Megan: I'm a little biased toward the first title myself. Good point you make about even the selection of the words...they imply that negativity.
Thanks so much for the comments all. This is an interesting topic...and when we started our little company, one of our tenets is "no performance reviews." Every day is a way to improve.