One of the biggest criticisms of the traditional annual performance appraisal, despite the fact that the vast majority of organizations continue to use them, is that they are too static.  They don't accurately reflect all the activity, accomplishments and challenges that employees face over the courses of the year.  They are a snapshot in time, not a useful, active feedback system.  By the time anyone gets around to the annual performance review, it's too little, too late.

Thanks to the social media explosion (Facebook, LinkedIn, Twitter), we now have a new option to improve the performance appraisal process: social performance management.  This is where users of a talent management system can post updates, news, accomplishments, feedback, praise and comments on a streaming "wall" that's visible to the organization/team.

Social performance management is catching on like wildfire because of its obvious benefits.  It's a fast and easy way to communicate with your team.  It's a great way to send out quick updates that don't clog email inboxes.  And everyone loves public recognition and praise.  It keeps employees engaged and interested in the organization's overall performance and activities.

To be sure, there are challenges with social performance tools, too.  HR managers and senior executives worry about sensitive information being sent acros the wire.  Or they fret that employees will spend too much time on this "internal Facebook" and not enough time doing "real" work.  Or they worry that inappropriate comments will land the company in legal hot water.

I'd argue that those are mostly old ways of thinking.  The US workforce has evolved considerably in the last ten years and virtually all employees are familiar with social media tools.  The level of sophistication has also grown, and the vast majority of people know how to behave on public social media forums.

Yes, you do have to be careful not to expose the company to legal issues.  Any social media policy should cover both internal and external platforms.  However, HR managers and executives would be wise not to set too many rules for behavior less they compromise on honesty, feedback and open communication.

For almost all companies, there are tremendous benefits to be had from instantaneous, open feedback and communication between teams.  Public spaces (like a performance management wall) encourage employee to communicate outside of the traditional one-on-one of email, which brings transparency, clarity and enthusiasm to daily work.  This is especially true for smaller companies that may not have invested in other internal social platforms (like Yammer).