KIM DOMIL'S COMM 101 BLOG

Microsoft has been known as the main example of pitting employees against each other in attempts to reward the excellent and weed out the weak. But it is evident that workers aren’t excited about this method of stack ranking and it actually motivates employees less than it is supposed to. A former Microsoft employee recently told Bloomberg BusinessWeek that this practice encouraged “employees to backstab their own co-workers.” While a bit of pressure can motivate people, having such an intense and competitive environment is not healthy or encouraging for its employees.

This change will effectively change the system in which current and future of Microsoft employees will work with. Microsoft HR, Lisa Brummel issued a memo, according to the sources who spoke with the Verge. In the memo she says, “This is a fundamentally new approach to performance and development designed to promote new levels of teamwork and agility for breakthrough business impact.”

The key elements of change include

–       more emphasis on teamwork and collaboration

–       more emphasis on employee growth and development

–       no more curve

As discussed in Comm 101, ranking and pressuring employees is more likely to have a negative effect and reduce overall incentive to do better. Feelings of discouragement and pressure are feelings that employees want to carry out throughout their entire work experience. It is a great idea for Microsoft to kill off is controversial stack-ranking system from now on.

Notes: Week 10 – Human Resources (What motivates employees?)