What should be the focus of an effective performance review?

An effective performance review should primarily focus on areas of strength and necessary improvements. This approach allows for a balanced evaluation, where both the positive contributions of an employee and the aspects needing enhancement are acknowledged.

Focusing on areas of strength reinforces what the employee is doing well, which can boost morale and motivation. Highlighting necessary improvements provides employees with clear feedback on how they can enhance their performance, develop professionally, and contribute more effectively to the organization's goals. This constructive feedback loop encourages professional growth and fosters a culture of continuous improvement within the team.

The other options do not align with the primary objective of a performance review. Addressing future salary disputes and promotions diverts from the key focus of constructive feedback and performance assessment. Recognition of above-average performance, while important, can be seen as part of identifying strengths but fails to encompass the need for improvement, which is critical for overall development. Lastly, a focus on reducing staffing levels is detrimental to team morale and does not contribute to a productive review process aimed at enhancing individual performance and team effectiveness.