The annual review is still used for performance evaluation as well as for the possibility of giving an individual a merit increase. Evaluating performance has taken a back seat to the form and format. So, one might properly conclude that there is a difference between a review and an appraisal, and where many companies are falling down is in the area of appraisal. Briefly, the horns effect states that an individual who is due for review and screws up royally just before a review, is going to be appraised negatively. Sure, interim reviews will probably be met with complaints from supervisors and managers.
Performance reviews are a pain in the neck and they are time consuming.
They are also absolutely necessary if the evaluation system is to be rational. These complaints can only come from a misunderstanding or lack of understanding as to the value of performance appraisals. All too often organizations simply foist the process on managers since it has always been part of the managerial process. And so on. These reasons are valid, no matter how hackneyed they may seem.