What are the organisational benefits of performance review Essay

What are the organisational benefits of performance review - Essay Example While these individuals may differ on how and when performance reviews should be conducted they are all united on the point that such reviews and the review process itself is an essential part of employee growth which in turn leads to the growth of the company. Jack Welch served as the CEO of General Electric for more than two decades and links performance reviews to the overall mission of the company. Welch (2005, Pg. 16) says that â€Å"Every decision or initiative was linked to the mission. We publicly rewarded people who drove the mission and let go of people who couldn’t deal with it for whatever reason.† GE’s own mission, when Welch was running the company, was to be the most competitive company in the world which fits with the two pronged approach of rewarding and doing the utmost to keep the best talent within the company and letting go of those who do not perform to a certain level. Such tactics could only be employed when effective performance review processes are in place and GE’s system for performance reviews has been lauded by critics and copied verbatim by the competition simply because it is one of the best. The current issues faced by our organisation are mostly concerned with the human resource management of the company. Before an outline of these issues as well as a discussion of the problems is made, it must be noted that none of these issues are large enough to cripple the company but they do make the management process more difficult. Additionally, all these issues come with simple solutions and if those solutions are applied with careful consideration there should be no reason why the company can not gain competitive advantages over time. The central issue for the company comes from the fact that many of our senior managers and other personnel have little or no formal training in management which leads to a lack of