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Cyanamid's New Take on Performance Appraisal
The old performance appraisal system at American Cyanamid Co. had so many detractors it became a target in the company's effort to find ways to improve employees' quality of life. An experiment in the Medical Research Division substituted three ratings for the ten in the old review procedure and called for no recommended distribution. The new plan assumed that almost all employees perform capably and conscientiously at their jobs, though in a few cases performance is so impressively good or egregiously bad that it should get special recognition. Supervisors were now encouraged to stress positive instead of negative aspects of each subordinate's work.