As defined by Albert Einstein Insanity is doing the same thing over and over again and expecting different results. Companies that utilize stack ranking, a system that places employees on a bell curve and firing the low performers, has been proven to reduce productivity since the system was founded in 1980.

Unfortunately for Yahoo, Marissa Mayer has decided this method, that has been proven unsuccessful, is the best way for her to inspire an organizational culture that will take Yahoo from the bottom to the top. As Albert Einstein would say, this is Insanity.

As a tech company, Yahoo must look to foster a culture where employees are highly motivated and creativity is supported so that innovation, the key to riches in technology, is achieved at a level above the competition. By stack ranking employees and threatening them with their jobs, Yahoo is effectively demotivating their employees and encouraging them to look for other jobs where there are no concerns about job security and they are allowed to focus on what is most important, their work.

With this insane mistake of a human resource strategy, Yahoo is digging their grave in a market they are already trailing in.

If only Yahoo had a Sauder Graduate to steer them off this course of action, motivation and organizational culture is something taught as a basic in Sauder’s first year classes.

Sources:

http://www.businessweek.com/articles/2013-11-12/yahoos-latest-hr-disaster-ranking-workers-on-a-curve#r=most popular

http://www.ibtimes.com/what-stack-ranking-microsoft-ends-controversial-employee-rating-system-yahoo-ramps-it-1468850

http://www.news.com.au/technology/business-technology/another-hr-fail-by-marissa-mayer-angers-yahoo-employees/story-fn5lic6c-1226759112333