Microsoft axes its controversial employee-ranking system
Microsoft is killing off its controversial stack-ranking system today. While it could be viewed as an internal change that won’t affect consumers directly, it will have a broad effect on current and future Microsoft employees that may just shape the future of the company. For years Microsoft has used a technique, stack ranking, that effectively encourages workers to compete against each other rather than a collaborative Microsoft that CEO Steve Ballmer is trying to push ahead of his retirement.
Stack ranking is a process where each business unit's management team has to review employees' performance and rank a certain percentage of them as top performers, or as average or poorly performing. Former Microsoft employees have claimed it leads to colleagues competing with each other, especially when some employees in a group of individuals need to be given poor reviews to match the method.