Real-Life Appraisal Mistakes & How Companies Fixed Them

Ever left a performance review feeling like your hard work wasn’t truly recognized? You’re not alone. About 70% of employees feel their appraisals don’t accurately reflect their contributions. A strong review system can boost morale and productivity, while a flawed one can lead to frustration and disengagement.

The good news? Many companies have acknowledged their missteps and revamped their appraisal processes. But before we dive into those, let's explore why performance appraisals have always been a tricky terrain.

The Evolution of Performance Appraisals

Performance appraisals have existed in various forms for centuries. Historically, they were used in military and hierarchical settings to measure efficiency and discipline. As organisations grew, formal evaluation systems emerged, aiming to assess employee contributions objectively. However, despite their intent, biases, rigid structures, and outdated methods often made these assessments counterproductive.

Common challenges include:

Recency Bias: Employees are judged based on their most recent performance rather than their entire year's work.
Halo Effect: A single positive (or negative) trait influences overall assessment.
Manager Subjectivity: Personal opinions and relationships impact ratings.
Lack of Standardization: Inconsistent criteria across teams lead to unfair evaluations.

Despite these hurdles, companies are adapting to make appraisals more effective. Let’s examine how some major organisations have tackled their performance review challenges.

1. Wipro Moves Away from the Bell Curve

The Problem: Wipro, a leading Indian IT firm, used the bell curve method, which categorized employees into fixed performance bands. This forced ranking often left employees feeling undervalued and demotivated.

The Fix: In 2015, Wipro became the first Indian IT company to eliminate the bell curve. Instead, they introduced a quarterly feedback system, allowing managers to assess employees based on their individual contributions rather than a predetermined curve. This shift led to more transparency and meaningful evaluations.

2. TCS Transforms Reviews with 'Feedforward™'

The Problem: Tata Consultancy Services (TCS) found that its traditional annual review process was too rigid and outdated for its evolving workforce.

The Fix: TCS introduced ‘Feedback to Feedforward™,’ a cloud-based system enabling real-time feedback. Employees receive continuous input on key areas such as engagement, development, and compliance. The platform has facilitated over 18 million feedback conversations, making performance management more dynamic and employee-centric.

3. Infosys Ditches Forced Rankings for ‘iCount’

The Problem: Infosys previously relied on a ranking system that compared employees against each other, often leading to dissatisfaction and disengagement.

The Fix: Infosys launched ‘iCount,’ a performance management system emphasizing personal achievements and continuous feedback. By shifting away from rigid rankings, the company improved morale and ensured fairer, more transparent evaluations.

4. BMC Bank Goes Digital for Smoother Appraisals

The Problem: BMC Bank faced inefficiencies due to its outdated, paper-based appraisal process, which was inconsistent across branches.

The Fix: The bank adopted TCS CHROMA™, a cloud-based performance management tool. This digital transformation streamlined appraisals reduced administrative overhead, and gave employees real-time access to their performance data, creating a more efficient and transparent system.

The 2025 Perspective: AI-Driven & Employee-Centric Appraisals

As workplaces evolve, performance evaluations are becoming more adaptable, with AI, hybrid work models, and employee well-being playing a significant role.

AI-Powered Performance Insights: Companies are leveraging AI to analyze employee contributions, reducing bias and making appraisals more data-driven.
Hybrid & Remote Work Adaptations: Organisations are integrating virtual feedback loops and asynchronous check-ins to assess remote employees.
Well-Being as a Key Metric: Many companies now factor in mental health, stress management, and personal development into their review processes, recognizing their impact on overall performance.

A Recruiter’s Perspective: Hiring for Long-Term Growth

Beyond performance reviews, recruiters play a crucial role in shaping the workforce. A company’s appraisal process is only as effective as the talent it brings in. In 2025, top recruiters are focusing on:

AI-Assisted Hiring: Using predictive analytics to identify candidates with long-term potential beyond resumes.
Soft Skills Over Technical Skills: Prioritizing emotional intelligence, adaptability, and collaboration—key traits for long-term success.
Growth-Oriented Onboarding: Implementing structured feedback mechanisms early in an employee’s journey to set them up for continuous improvement.

Key Takeaways: Making Appraisals Work

A poorly designed appraisal system can demotivate employees and hinder productivity. However, as these case studies show, strategic improvements can transform performance reviews into powerful tools for growth.

Leading organisations focus on fairness, transparency, and continuous feedback to create environments where employees feel valued and motivated. Integrating AI-driven insights, ongoing evaluations, and well-being metrics ensures a more dynamic and effective appraisal process.

As the next performance review cycle approaches, ask yourself: Is your appraisal system helping employees thrive or holding them back?

Psst! This blog was created after a lot of thought by a real person. #NoGenerativeAI