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Microsoft and "Stack" or "Forced" Ranking of employees
11/17/2013
Microsoft phases out this system of forced ranking of emplyees and puts in place more frequent feedback for employees from managers. The idea is to encourage teamwork. Ballmer makes this change in 2013 as he prepares to leave Microsoft. CEO Welch introduced the stack ranking system in General Electric and it was a way to rid GE of "underperformers" or those who did not conform to the new CEO's requirements. A professor at UCLA's School of Management sees the evaluation system at companies failing in many respects if it sees the manager's job to evaluate and not to get performance up to a high level by training, motivation and team work. Ballmer sat down for four hours in December 2013 with Alan Mulally to understand how Ford made its comeback and Mulally told him it was teamwork and simplifying the way Ford did things. Welch was addressing a problem not faced by many companies having to fight competition and come up with exciting products and technologies. He was trying to change an old established industrial company quickly- the same approach which did not put highest priority on teamwork would be disastrous for companies needing to fight entrenched competition.
Grouped Articles
Microsoft Abandons 'Stack Ranking' of Employees
Wall Street Journal 11.17.2013
Invasion of the Annual Reviews
New York Times 11.23.2013
Lynn Good of Duke Energy, on Effective Leaders
New York Times 11.23.2013
Dabbling in Microsoft Is Enough for Gates
New York Times 01.22.2014
The Trouble With Grading Employees
Wall Street Journal 04.21.2015
360 Reviews Often Lead to Cruel, Not Constructive, Criticism
New York Times 02.26.2016
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