An interesting piece on appraisals.
But practically, it’s really important. Do people who perform well always perform well? And people who perform poorly, do they always perform poorly? The reason this matters is because there is a very prominent theory in the practice of management — something that Jack Welch made famous — about the A-player, B-player, C-player model. The folks at McKinsey & Co. were making a similar case that there are really good executives and there are kind of lousy ones. The big thing you want to do if you believe that is to hire the good ones and get rid of the bad ones. If that’s the story, then management’s kind of simple, right? You just hire the good people, screen them and see how they do. If they do bad, out they go.