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Read the following passage and answer the questions :

The Chairman astonished HR leaders by announcing the company’s discontinuation of annual reviews, substituting them with immediate feedback, goal-oriented coaching and weekly incentives. This transformation, once considered heretical, has gained widespread acceptance: around one-third of U.S. companies, including Adobe, Deloitte, GE, Microsoft and PwC, have transitioned from inflexible annual evaluations to regular, informal assessments. Conventional performance evaluations, previously effective for determining compensation and recognizing talent, have evolved into expensive, bureaucratic processes that are unpopular among both employees and managers. Critics contend that they prioritize historical conduct over prospective development, hinder collaboration and do not fulfill commercial requirements. Originating from the military’s merit rating system, performance appraisals have transitioned between accountability and development, influenced by variables including inflation, compulsory ranking at GE, executive compensation reforms and the competitive pursuit of talent. Currently, low inflation, streamlined organizational structures, agile work methodologies and the necessity for ongoing innovation have made annual reviews redundant. Organizations are currently emphasizing agility, collaboration, and personnel development, concentrating on continuous dialogue and immediate objective. Despite ongoing challenges-such as bias, salary discrepancies and inadequate supervisor training-organizations that implement continuous feedback mechanisms experience enhanced satisfaction, superior coaching and greater alignment with corporate objectives. The transition signifies a necessity: performance management must adapt to cultivate future talent.

What replaced annual reviews in the company, as announced by the Chairman ?

This question was previously asked in
UGC NET 2025 Management Question Paper (07-Jan-2026) (Shift 1)
The correct answer is

Immediate feedback, goal-oriented coaching and weekly incentives

 Immediate feedback, goal-oriented coaching and weekly incentives — option 3.

Where the passage says so. The answer is in the opening sentence: the Chairman announced “the company’s discontinuation of annual reviews, substituting them with immediate feedback, goal-oriented coaching and weekly incentives”. All three elements appear together, and option 3 reproduces them exactly.

Why each distractor fails.

OptionWhy it is wrong
1. Only compensation-based incentivesThe word “only” is fatal. Weekly incentives are one of the three elements, not the whole of what replaced the reviews — feedback and coaching are the other two
2. Historical performance recordsThe passage uses “historical conduct” as a criticism of the old system, which prioritised it over prospective development. It is what was abandoned, not what replaced it
4. Executive compensation reformsMentioned, but as one of the historical variables that influenced how appraisals evolved — not as the substitute the Chairman announced

The management substance behind the change. The three replacements correspond to three defects of the annual review :

Defect of the annual reviewWhat replaces it
Feedback arrives months after the behaviour, when it can no longer be acted onImmediate feedback
The conversation is evaluative and backward-looking, so the manager becomes a judgeGoal-oriented coaching — the manager becomes a developer
Recognition comes once a year, too remote from the effort to motivateWeekly incentives — reward close in time to performance

The reading skill this question tests. A factual-recall question requires the whole of the stated answer, not a part of it. Option 1 is a genuine element of the passage presented as if it were the entire answer — the commonest trap in comprehension items, and the reason the word “only” should always be examined closely.

Hence, the answer is immediate feedback, goal-oriented coaching and weekly incentives.

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Similar Questions

  1. Following steps are undertaken for developing a workforce score card.

    (a) Identify critical and carefully defined outcome measures.

    (b) Translate the measures into specific actions and outcomes.

    (c) Identify high and low performing employees.

    (d) Develop and communicate detailed description of what is expected.

    (e) Develop supporting HRM and measurement systems.

    What is the correct chronological order of these steps ?

  2. Read the following passage and answer the questions :

    The Chairman astonished HR leaders by announcing the company’s discontinuation of annual reviews, substituting them with immediate feedback, goal-oriented coaching and weekly incentives. This transformation, once considered heretical, has gained widespread acceptance: around one-third of U.S. companies, including Adobe, Deloitte, GE, Microsoft and PwC, have transitioned from inflexible annual evaluations to regular, informal assessments. Conventional performance evaluations, previously effective for determining compensation and recognizing talent, have evolved into expensive, bureaucratic processes that are unpopular among both employees and managers. Critics contend that they prioritize historical conduct over prospective development, hinder collaboration and do not fulfill commercial requirements. Originating from the military’s merit rating system, performance appraisals have transitioned between accountability and development, influenced by variables including inflation, compulsory ranking at GE, executive compensation reforms and the competitive pursuit of talent. Currently, low inflation, streamlined organizational structures, agile work methodologies and the necessity for ongoing innovation have made annual reviews redundant. Organizations are currently emphasizing agility, collaboration, and personnel development, concentrating on continuous dialogue and immediate objective. Despite ongoing challenges-such as bias, salary discrepancies and inadequate supervisor training-organizations that implement continuous feedback mechanisms experience enhanced satisfaction, superior coaching and greater alignment with corporate objectives. The transition signifies a necessity: performance management must adapt to cultivate future talent.

  3. __________ is a profile of job holders department-wise and offers a snapshot of who will replace if there is a job opening.

  4. Under which method of performance appraisal many evaluators join together to judge employee’s performance in several situations with the use of a variety of criteria ?

  5. Following steps are undertaken for developing a workforce score card:

    (a) Identify critical and carefully defined outcome measures.

    (b) Translate the measures into specific actions and outcomes.

    (c) Identify high and low performing employees.

    (d) Develop and communicate detailed description of what is expected.

    (e) Develop supporting HRM and measurement systems.

    What is the correct chronological order of these steps?

  6. Which one of the following statements is not true in the case of Human Resource Management?

  7. Which one of the following training methods is not a managerial on-the-job training method?

  8. Arrange the following steps of training and development process in the right sequence:

    a. Need analysis

    b. Validation

    c. Evaluation

    d. Implement the programme

    e. Instructional design

  9. Match the following:

    List - IList - II
    (a) Programmed learning(i) A development technique in which teams of managers compete by making computerized decisions regarding realistic but simulated situations.
    (b) Case study(ii) Any attempt to improve current or future management performance by imparting knowledge, changing attitudes or increasing skills.
    (c) Management Game(iii) A development method in which the manager is presented with a written description of an organizational problem to diagnose and solve.
    (d) Management development(iv) A systematic method for teaching job skills, involving presentation of questions or facts, allowing the person to respond and giving the learner immediate feedback on the accuracy of his answers.
  10. Match the following:

    List - IList - II
    (a) Career management(i) The lifelong series of activities that contribute to a person's career exploration, establishment, success and fulfilment.
    (b) Career development(ii) The deliberate process through which someone becomes aware of personal skills, interests, knowledge, motivations and other characteristics and establishes action plans to attain specific goals.
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Important Questions from Concept, role and functions of HRM

  1. Male staff should take which of the following precautions?

  2. Match List - I with List - II:

    List - I (Concept)List - II (Description)
    A. Personnel managementI. Focuses on profit maximization by contribution of the people
    B. Human Resource managementII. Managing employee, employer relations amicably
    C. Industrial relationIII. Managing Human resource challenges of international operations
    D. International HRMIV. Developing attitude of the people for their better contribution

    Choose the correct answer from the options given below :

  3. Match the items of List-I with those of List-II with regard to operative functions of HRM and indicate the code of correct matching.
    List – IList – II
    a. Procurementi. Performance appraisal
    b. Developmentii. Discipline
    c. Integrationiii. Induction
    d. Maintenanceiv. Personnel research
    Codes :
  4. Following steps are undertaken for developing a workforce score card.

    (a) Identify critical and carefully defined outcome measures.

    (b) Translate the measures into specific actions and outcomes.

    (c) Identify high and low performing employees.

    (d) Develop and communicate detailed description of what is expected.

    (e) Develop supporting HRM and measurement systems.

    What is the correct chronological order of these steps ?

  5. Read the following passage and answer the questions :

    The Chairman astonished HR leaders by announcing the company’s discontinuation of annual reviews, substituting them with immediate feedback, goal-oriented coaching and weekly incentives. This transformation, once considered heretical, has gained widespread acceptance: around one-third of U.S. companies, including Adobe, Deloitte, GE, Microsoft and PwC, have transitioned from inflexible annual evaluations to regular, informal assessments. Conventional performance evaluations, previously effective for determining compensation and recognizing talent, have evolved into expensive, bureaucratic processes that are unpopular among both employees and managers. Critics contend that they prioritize historical conduct over prospective development, hinder collaboration and do not fulfill commercial requirements. Originating from the military’s merit rating system, performance appraisals have transitioned between accountability and development, influenced by variables including inflation, compulsory ranking at GE, executive compensation reforms and the competitive pursuit of talent. Currently, low inflation, streamlined organizational structures, agile work methodologies and the necessity for ongoing innovation have made annual reviews redundant. Organizations are currently emphasizing agility, collaboration, and personnel development, concentrating on continuous dialogue and immediate objective. Despite ongoing challenges-such as bias, salary discrepancies and inadequate supervisor training-organizations that implement continuous feedback mechanisms experience enhanced satisfaction, superior coaching and greater alignment with corporate objectives. The transition signifies a necessity: performance management must adapt to cultivate future talent.

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