Neither employees nor their managers look forward to annual performance reviews. That's why experts suggest using methods and tools that provide valuable, real-time feedback on how employees are doing.
Steve Ballmer isn't necessarily a bad CEO. After all, Microsoft's on strong financial footing. But Ballmer made enough bad product decisions - Zune, Kin, Vista and perhaps Surface - to suggest that Microsoft employees, swayed by a forced-ranking employee rating system, told him what he wanted to hear, not what he needed to hear. If that culture doesn't change, Ballmer's replacement will fare even worse than he did.