One of the duties often assigned to management in organizations of all sizes is the carrying out of performance reviews. Oftentimes, these are not among a manager’s favorite duties as careful balances between objectives, feelings, and the potential for ill feelings is often at stake. However, it has been proven time and again that performance reviews can be incredibly useful tools for management to constructively and in a structured way address problems, possible solutions to glaring issues, and of course, to praise, which is something that goes a long from management.

Performance reviews are among the most important tasks that can be assigned as they can have a large influence productivity and subordinate performance in general, especially since they often involve evaluation of raises, general levels of satisfaction, and an impact on motivation. However, there is a high level of ambiguity about this practice and what is given, expected, and how it is carried out. On the one hand, performance reviews can be a negative influence in your organization and they can be looked upon with distaste and dread for all parties.

The main function or desired end-result of these reviews should be to offer a strong evaluation that brings better performance as well as to foster motivation and incentive. For a manager to act as both “judge and jury” can be a challenging task that requires many skills and requires great objectivity and willingness to look at the big picture while making it clear to subordinates what is wanted and expected within the context of the review.

Using the idea of the managerial “black box” one must be able to balance the long and short term effectively with a dedicated eye on the long-term performance (time for activity translating to output) as a key in offering a performance critique. By having a balanced perspective that views performance as a whole over an extended, it will be possible to determine the way the subject of a review is adding value to the organization.

Another part of this balance involved with performance reviews is to leave aside the issue of mere potential because this is not a reliable or effective tool with which to gauge performance, especially when profits or goals are at stake. In accordance, it should never follow that a manager is rated higher than the organization. By being completely honest, listening effectively, being clear and not overwhelming with “laundry lists” one can skillfully and productively conduct a successful performance review.