Performance Reviews and their Effects | Performance Management

By Prapoorna M

Last Updated: November 27, 2021

Managers and employees are often dissatisfied with the performance evaluation and the results they get. In most cases, the performance management system doesn’t seem like evaluating accurate performance reviews. In that case, it not only does spoil the organization’s future plans but also affects the relations between employees and the organization. Hence the companies should be keen to observe the performance management system that really works.

Employees congratulating a colleague
Employees congratulating a colleague

In general, the companies want to hold each employee accountable for his or her performance by conveying information about the strengths and weaknesses of the employees and thus planning to foster their performance and development. In any company, the HR managers need a documentation support to hire the employees and also to fire the employees. Also, when it comes to their performance review, even the managers want an honest feedback from the employees.

Employees are more focused on gaining good hike and a nice feedback on their performance. They even tend to claim for an increase in compensation and ask for a better rating. Extrinsic motivations like
assigning nice title or the increase in compensation influences the intrinsic motivation like learning and growth in the employees. The difference between performance management and employee development has to be understood.

The performance data collected by the management can be used to deliver strategic learning resources for employees that help focus and accelerate employee growth. While the employees, should have a clear understanding between performance management and individual development as that lets them focus on their development and to fit it in performance review conversation.


When the feedback is taken from the colleagues, they usually give positive feedback when they think that it helps the other person and that it won’t turn against to their compensational benefits. When the feedback is collected from the superiors like team leaders the employees observe how they are being evaluated and on what basis. Such feedbacks are termed as 180 degree and 360 degree feedback in EWA.

A successful business professional
A successful business professional

To reach a successful position, an employee should have growth mindset. According to a concept, people have two mindsets, one is fixed mindset which means that the individuals are born with a fixed level of intelligence and ability, while, growth mindset means that the individuals can always improve their present level of intelligence and ability. Through proper feedback, the employee can get an idea on where and what to focus for improving. Growth mindset derives development and learning, opening channels for ongoing feedback concerning the employees and managers of the organization.

Organizational Justice

The approach of performance management in a company has a great impact on the employees. Organizational justice refers to how employees just the behavior of an organization and how it results in their attitude and behavior. When it comes to performance review of the company, the employees are concerned on how it goes and how the company handles it. To be more precise, let’s go through the three components of the organizational justice.


The employees of a company are keen to observe if the company’s decision-making rules are clear and consistent. Any biasing situations in the office should not affect the process or the employee’s work. Such potential biases if any present, observed or felt by the employees are also considered if they are being minimized or acknowledge, or if such biases are acting on the decision-making process. In case, the employee couldn’t voice his/her opinion or input due to such circumstances that would result in a negative feedback for the company.


Any decision making process relating to the work should be discussed with the employee and if not, that raises a question in his/her mind about the accountability of the employee in the company. This could make him relate to some other petty instances where he feels that respect and compassion were not there for him. Such things could make the employees lose that sense of belongingness towards the company.

Group of employees interacting
Group of employees interacting


The outcome of the decision making process matters the most. The employees are likely to measure what they get out of it and if whatever the outcome is, if it’s appropriate and equitable. The result of the whole process is of course a measure of the quality time spent by the management on it.

Are you keen on implementing a perfect performance management system in your company that helps the employees boost their performance and monitor their holistic well-being and thus fostering employee engagement in your company? Join hands with us for making it work as together we can be a step ahead in reaching your future goals.

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