Performance reviews are a crucial thing for any organization. If it is not done in a proper and unbiased manner then a lot of problems can crop up in the organization. But this process can be equally time- consuming and unproductive. In the initial period of 2000s, Google took steps to sort out this issue. It adopted a pioneering grading system known as Objectives and key Results or OKR.
The staffs of the company set a specific goal for themselves and also will decide on a series of quantifiable results that will assist them is achieving that objective. The chief executive officer of Google does similar things for the entire organization.
OKRs are the first and foremost step in Google’s performance management process. The senior vice-president of People Operations of the company puts forward a few key aspects like –
• The employees are rated by their managers on a five point basis
• Staffs and their managers chooses a group of peer reviewers that also includes junior employees
• Groups of managers meet with each other and reviews all their staffs’ tentative ratings jointly. This actually helps to decrease the managers’ bias.
• Annual reviews and pay hike discussions are held separately
The broad reason behind employee evaluation is their individual growth which will ultimately contribute to the company’s development.