You're going to have to improve." If I don't, you tell me that it's best for me and my family to find someplace else to work.īut when many companies put it into practice, they weren't flexible with their reviews. It's you sitting across the table from me and telling me, "Jack, you're not measuring up. Who wants to be on the bottom once they know it? You don't fire them. About 70% (of the bottom 10%) leave on their own. It's letting the bottom 10% know where they are and then giving them a chance to move on. Welch explains the initial effectiveness of this system in a USA Today interview from 2005: Stack ranking became widely practiced in the 1980s and remained popular for nearly three decades after Jack Welch used it to great success as CEO of GE. Research from the Institute for Corporate Productivity shows that 49% of the companies it tracks used a stack ranking management system in 2009, while only 6% of those same companies did two years later. Many large corporations have done the same in the past several years. And gripes against the stack ranking system weren't isolated to Yahoo.Īccording to a 2012 Vanity Fair profile of Microsoft, the large majority of Microsoft employees under CEO Steve Ballmer found stack ranking to be the most destructive force within the company, saying that it "effectively crippled Microsoft's ability to innovate." It eventually shed the practice in late 2013. This particular question received 1,531 votes from employees and was just one of many. I don't want to lose the person mentally. I understand we want to weed out mis-hires/people not meeting their goals, but this practice is concerning. I feel so uncomfortable because in order to meet the bell curve, I have to tell the employee that they missed when I truly don't believe it to be the case. Now I have to have a discussion about it when I have my QPR meetings. I was forced to give an employee an occasionally misses, was very uncomfortable with it. Account icon An icon in the shape of a person's head and shoulders.
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