A Computer World blog has revealed that the technology giant Microsoft has ditched its bell curve rankings system amid claims within the industry that it has played its part in the company’s poorer performance over the last few years. Instead, the company has introduced a programme of more frequent performance reviews and greater control for managers in awarding bonuses.
Richi Jennings, the author of the blog, compiled opinions from others to describe the situation and the changes that Microsoft has implemented. The people quoted in the blog blamed the performance management system, which forced managers to place fixed percentages of their teams into one of five grades, for damaging morale within the workforce and innovation. In fact, one blogger reported that a manager had to categorise some of their employees as under-performers, even if that wasn’t the case.
An opinion was also given that Microsoft has a “sometimes brutal corporate culture” so all of the bloggers quoted welcomed the removal of the forced rankings system, which determined crucial people management practices such as promotions. This kind of system has its origins in the 1980s but one blogger reported that its reputation was tarnished and that Microsoft’s insistence in keeping the employee ranking scheme for so long has driven talent to the company’s competitors.
The blog mentioned a piece by Vanity Fair, which condemned the ratings system as a contributor to Microsoft’s ‘lost decade’. The system has been changed at the same time that current CEO Steve Ballmer is restructuring the business around a new ‘Microsoft One’ strategy. However, one blogger also called the new system into question, suggesting that rating will still take place but will be less open.
You can read the full article here: SHOCK! Microsoft HR kills its hated ‘stack-ranking’
