If employees are regularly and properly managed with an open/participatory management style and there’s a positive environment that encourages good interaction with fellow workers and managers, then people quickly figure out where they stand among their peers — and management can assess their progress (or lack thereof).

It’s always a mistake to “wait for the review” to coach/praise/admonish a worker, and the inherent tension in a formal review often complicates a relaxed discussion of goals and objectives. I’ve often wondered if the employee simply isn’t primarily focused on whether or not he/she will get the raise or promotion they desire.

While I’m not advocating dropping the review process (for legal and administrative reasons), and while I do believe there is some benefit, I do question the real value for either the manager or the subordinate.