A sign outside the corporate headquarter
GE's corporate headquarters Photograph by Stan Honda — AFP/Getty Images

Here’s why GE is replacing performance reviews with an app

Aug 13, 2015

General Electric, the eighth highest-rank company in the Fortune 500, is getting rid of annual performance reviews in favor of app-based feedback, Quartz reports.

GE managers used to meet with employees once a year, rank them, and fire the bottom 10%. But many firms have been moving away from that practice, which GE Head of Human Resources Susan Peters told Quartz has "become more a ritual than moving the company upwards and forwards."

Managers are GE will now give more constant feedback about their employees' work through an app called "PD@GE," which stands for "performance development at GE." Employees will have a concrete list of short-term goals to work towards, while managers are expected to hold frequent discussions about employees' progress. Employees can also use the app to request feedback at any time.

Managers will still meet with employees at the end of each year. But they'll be expected to act more as coaches, guiding their employees on how best to achieve their goals.

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