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Any competent manager should be meeting regularly with all of her direct reports, and should make sure that each employee knows clearly where they stand and how they are performing. Continuous and timely feedback is vastly superior to annual reviews. If a manager provides continuous and timely feedback, then the performance review process should be a complete waste of time.
Companies should foster a culture in which the standing and progress of every employee are transparent, making performance reviews an unnecessary exercise in redundancy. Managers who have direct reports who are not totally clear about where they stand should themselves be told that they are not performing up to snuff.