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These two activities are not compatible. It is difficult to be both a judge and a coach at the same time. Performance reviews are intended to encourage changes in behaviour, encourage career development, and support continuous organisational learning. These reviews focus on social and technical contributions the individual contributed to the project team. For example, the 360 degree feedback process has been used successfully to improve the bility of people to work on teams. As long as performance reviews are not directly related to pay and promotion decisions, such reviews are more readily accepted and even perceived as positive for the individual and organization.
Since pay reviews can result in negative or positive outcomes for a career, they are perceived as very serious by most individuals. Pay reviews should be more carefully structured and based on clear standards and criteria known to the person being evaluated. Every attempt should be made to avoid confrontation.