Employers are increasingly frustrated with traditional performance management systems because the purpose and terminology has changed.  In the not-too-distant past, employers did not use the traditional performance management process to develop employees.  Instead, they used an annual performance review process to assess an employee's past performance.  In recent years, however, employers want to more actively manage - and develop - employees, and a shift in terminology - from review to management - evolved.  The annual performance review process, however, did not.  The purpose changed but the process did not.  As a result, the backwards-looking process no longer fits the needs of employers looking to develop and promote better performance.

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