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End of traditional employee performance reviews and ranking system?

Big companies like Accenture alter the company's performance management process

The Huffington Post reported that Accenture, one of the world's largest companies, announced its decision not to judge employees based on company rankings and annual evaluations.

Instead, it will implement a more fluid system, in which 330,000 employees receive timely feedback from their managers on an ongoing basis following assignments."

Accenture CEO Pierre Nanterme said, "It's huge. We're going to get rid of probably 90 percent of what we did in the past."

Some studies have shown that performance reviews and rankings don’t improve, and may actually hurt, performance.

It is also said that reviews and rankings have also been described as being too time-consuming, expensive and generally ineffective.

Other big companies such as Microsoft, Adobe, Expedia and Motorola are some of the companies that have recently overhauled their employee review system.

The article also revealed that 6% of Fortune 500 companies had stopped using annual performance reviews and forced rankings.

How is the ranking and review system in your country? Would you agree that the existing ways are nail-biting measures?