“Bill, it’s time for your annual appraisal interview. You’ve done a lot of good work, and I want you to know that it has been noticed and appreciated. Of course there are areas in which improvements can be made. Let’s start with the good side. Your output record has been good all year, and we’re particularly pleased with your showing on the cost control project. You have good judgment, and it shows up in your planning. As I told you at the time, you did a swell job on the Clarkson order…

A version of this article appeared in the November 1963 issue of Harvard Business Review.