Microsoft is no more in favor of stack ranking system and has decided to get rid of it as it believes that the system is not the best method of reviewing employee’s performance.
In an e-mail sent to the company’s employees by the head of human resources for the company, Lisa Brummel, on November 12 it was revealed that the company will no more review its employees performance based on the curve. There will be “no more curve,” and there “will no longer be a pre-determined targeted distribution”, wrote Brummel in her email notes CNNMoney.
Critics and other former Microsoft employees criticized the stack ranking system as they were of the opinion that such a ranking system makes staffers compete against each other – which hampered collaboration among the employees focusing more on internal, rather than external competition.
According to the 20-70-10 ranking system, the top 20% of workers are considered the cream of the crop, the next 70% are given adequate ratings while the bottom 10% are considered as under performers who work under the fear of a job cut every time.
Microsoft’s decision to eliminate the stack ranking system is part of the company’s “One Microsoft” philosophy and strategy, read Brummel’s mail. The company’s will now focus more on teamwork and collaboration to evaluate its employee’s performance, she said.
The news was welcomed by the company’s employees.
