Performance Management Reimagined: Moving Beyond Annual Reviews to Continuous Feedback

Abstract

This study examines the evolution of performance management systems, focusing on the shift from traditional annual reviews to continuous feedback models, using a qualitative approach based on literature review and library research. Organizations are increasingly recognizing the limitations of annual performance evaluations, which often fail to provide actionable insights or foster employee development. Through an analysis of academic studies, industry reports, and case studies, this research explores the benefits and challenges of continuous feedback mechanisms, emphasizing their ability to enhance communication, promote real-time performance improvement, and align employee goals with organizational objectives. The findings highlight that continuous feedback fosters a culture of collaboration and adaptability, critical in today’s fast-paced and dynamic business environments. However, the transition also poses challenges, including resistance to change, the need for robust technological tools, and the potential for feedback overload. This paper underscores the importance of managerial support, training, and strategic implementation to maximize the effectiveness of continuous feedback systems. By reimagining performance management as a continuous process, organizations can empower employees, improve engagement, and achieve sustainable growth. The study contributes to the ongoing discourse on modernizing workplace practices, offering insights for researchers, practitioners, and policymakers aiming to optimize performance management strategies.