Page 120 - HBR's 10 Must Reads 20180 - The Definitive Management Ideas of the Year from Harvard Business Review

THE PERFORMANCE MANAGEMENT REVOLUTION

A talent management timeline
The tug-of-war between accountability and development over the decades

WWI WWII 1940s 1950s 1960s 1970s
The U.S. military The Army devised About 60% of U.S. Social psychologist Led by General Inflation rates shot
created merit- forced ranking to companies were Douglas McGregor Electric, companies up, and organiza-
rating system to identify enlisted using appraisals to argued for engag- began splitting ap- tions felt pressure
flag and dismiss soldiers with the document workers’ ing employees in praisals into sepa- to award merit pay
poor performers. potential to be- performance and assessments and rate discussions more objectively,
come officers. allocate rewards. goal setting. about accountabil- so accountability
ity and growth, to again became the
give development priority in the ap-
its due. praisal process.