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Surfing Corporate

Performance Reviews - Powered by Satan

Dec 1, 2021
Learn about the history and evolution of performance reviews, including their origin in the US military and the shift towards a more frequent and interactive approach. Explore the negative effects of forced ranking systems and the impact of GE's performance management system. Discover the problems with traditional models and the trend towards frequent informal feedback and smartphone apps for more meaningful conversations.
21:06

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Quick takeaways

  • Performance reviews have evolved over time, from a merit rating system to focusing on employee growth and development.
  • Companies are moving away from traditional annual reviews, adopting more frequent feedback systems to foster employee growth and engagement.

Deep dives

Evolution of Performance Reviews

Performance reviews have evolved over the years, starting from a merit rating system inspired by the US military during World War I to identifying potential officers in World War II. In the 1940s, companies began using appraisals to assess workers' performance and allocate rewards. However, in the 1950s, social psychologist Douglas McGregor introduced the concept of engaging employees and setting goals for their growth. The 1980s saw a shift towards forced ranking at companies like General Electric, focusing more on accountability than development. In the 2000s, organizations faced challenges with flatter structures and a need for more efficient ways to assess performance. As a result, many companies started adopting more frequent, informal feedback systems, emphasizing developmental feedback over traditional appraisals.

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