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Employees in XYZ Credit Services, Ltd. were delighted five years ago when they learned that the firm's management was giving up performance reviews...

Employees in XYZ Credit Services, Ltd. were delighted five years ago when they learned that the firm's management was giving up performance reviews because they just did not seem to work. The company eliminated formal performance reviews, and it did not replace them with another clear-cut performance feedback system. According to Lisa Gibbons, Director of Human Resources: 'No one liked giving them; no one liked receiving them. Managers looked at each other and asked, "Why are we doing this?"' If you were a consultant hired by XYZ, what recommendations would you make to ensure that employees' actions and efforts stayed focused on outcomes that improved the firm's operational effectiveness, knowing that management does not wish to return to a traditional performance appraisal process?

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