“If you talk simply and honestly about performance on a regular basis, you can get good results—probably better ones than a company that grades everyone on a five-point scale,” said Patty McCord, Netflix’s former chief talent officer.
How companies conduct performance reviews reflects the relationship between management and employees—a big part of what defines a company’s culture. Microsoft once tried grading people on a bell curve, giving a set number of employees a fixed grade, which had a very negative effect on employees’ performance and relationships, and in turn created an unpleasant company culture, as described in a Fast Company article:
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