Performance management is an important aspect of business discipline. Just like human resource, accounting, supply chain management, and finance are crucial for improving the organizational value (Grote 2005). There are companies which are rethinking their performance management practices, especially annuals reviews and rankings. The CEO of Accenture, Pierre Nanterme, reported that its 330,000 employees are undergoing the massive revolution (Cunningham 2015). These changes entail replacement of rankings and annual evaluations with timely and personalized employee feedback. Undoubtedly, the current trend in performance management is a decrease in favour, accorded to performance reviews. They were useful in fostering employees accountability, tracking individual performances over time and rewarding excellence. The current essay is an analysis of a case study of the article in the leadership column of the Washington Post entitled, In Big Move, Accenture Will Get Rid of Annual Performance Reviews and Rankings.
The problem appeared when Pierre Nanterme, the companys CEO decided to do performance reviews. After being in the company for 33 years and ultimately becoming its CEO, he noted that performance management in his organization was bureaucratic, rule-based and only existing as an end instead of shaping performances (Cunningham 2015). By September of 2015, the change took effect. Previously, reviews were only interested in outcomes and neglecting the pr