Management by whose objectives? 1970.

At first glance this article seems to be about management by objectives, an approach to performance appraisal that's gone out of fashion for the most part. But read more closely, it's an indictment of the measurement systems we still use today. Harry Levinson, a gifted psychologist who has published 13 articles in HBR, identified a constellation of problems that cripple performance appraisal systems: Unit managers are forced to commit to goals they don't believe are realistic. An obsession with objectivity and quantitative measures means that quality is neglected. Supervisors, who are profoundly uncomfortable rating people on their performance, make a hash of this critical task. Most important, in Levinson's view, the individual's needs and desires are absent from the performance measurement system; it's assumed that these are in perfect alignment with corporate goals and that, if they're not, the individual should move on. Levinson's suggestions for reform recall Frederick Herzberg's findings (see article on page 87): People are most deeply motivated by work that stretches and excites them while also advancing organizational goals.