Current dissatisfactions with appraisal systems will continue until they are revised to accommodate the “how” as well as the “what” in performance.
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A corporate president put a senior executive in charge of a failing operation. His only directive was “Get it in the black.” Within two years of that injunction, the new executive moved the operation from a deficit position to one that showed a profit of several million. Fresh from his triumph, the executive announced himself as a candidate for a higher-level position, and indicated that he was already receiving offers from other companies.
A version of this article appeared in the July 1976 issue of Harvard Business Review.
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HL Harry Levinson is chairman of The Levinson Institute and clinical professor of psychology emeritus in the Department of Psychiatry, Harvard Medical School.
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Read more on Employee performance management or related topics Careers and Performance indicators