Recently my company sent out an e-mail: we are changing our performance review system in 2010. Specifically, we are moving from a three tier rating system to a five tier one.
The old one had to go. The only three things that a manager could write for an employee were "below expectations" (which normally would get you canned), "exceeds expectations" (which Human Resources highly discouraged anyone to use) and "meets expectations". Everyone--for the most--part got the latter grade. It made no sense.
Now we're moving to a 5-point scale. Excellent, great, good, average and below average (paraphrasing here because supposedly this is proprietary information). This is still extremely rigid, but it at least gives managers some flexibility. Some.
It's good to know we're moving away from an antiquated system, but I believe it's a system that can still be improved. What grades does your company allow on performance reviews? How closely does this grade tie to bonuses and promotions (ours is almost solely based on it)? Leave some ideas in the comments below.
-Andrew
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