Adobe Systems, the global product services company plans to scrap the age-old practice of being pitted against colleagues and measured up by the bosses once a year. In effect they are planning to have in place a process wherein managers give regular feedback to their teams to ensure a quicker and continuous self actualization, rather than wait for the year-end. This is based on the premise that instant and real time feedback can boost performance.

It is true that companies constantly innovate and tweak their appraisal systems. Google emphasizes a 360-degree appraisal where employees are assessed by peers, bosses and subordinates. Microsoft now places greater emphasis on employee behavior rather than on targets. But hardly any company has gone as far as Adobe to do away with the recency effect.

Doing away with the annual reviews will help prevent 'the top of the mind recall' problem as well. Adobe is yet to fully decipher how it will work out promotions and increments, both of which will demand a relative assessment of employee performance.

Source: The Economic Times