![]() One former employee was quoted as saying “ If you were on a team of 10 people, you walked in the first day knowing that, no matter how good everyone was, 2 people were going to get a great review, 7 were going to get mediocre reviews, and 1 was going to get a terrible review. ![]() Pay increases tend to be given to the "excellent" range while those in the "poor" bracket are shunted towards the door, which has led to its US nickname " rank and yank." Therefore 10% of the employees must always be ranked "poor" no matter how good or bad they actually are. The catch is that a fixed percentage quota of employees must always be achieved for each ranking. The best 15% get a 1 or "excellent" ranking and the middle 75% get a 2 ranking and the worst 10% get a 3 or "poor" ranking. Stack ranking calls for a Company to rate its employees on a merit scale of 1 to 3 (can also be on a 1 to 5 basis) once every six months or else once a year. The article has garnered much publicity and the Irish Independent hailed it as an " emperor's new clothes" moment in the US and elsewhere, not for what it says about Microsoft but rather what it reveals about a commonly used and previously unquestioned HR tool. The article was highly critical of current CEO Steve Ballmer, however a deeper root cause of the poor company culture was unearth every former Microsoft employee interviewed for the article had blamed the company's problems not so much on the CEO, but on a HRM practice known as " stack ranking." The article on Microsoft was highly critical of the multinational stating that it had failed to launch significant new products for almost a decade during which it has been repeatedly beaten in the market by its competitors. In a story reported in the Irish Independent, a recent 'Vanity Fair' article on Microsoft has caused ructions across the US business community and beyond since its publication in August and could have widespread consequences for larger Irish companies.
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