The stack ranking system has been popular since 1980. However, since then, companies have been implementing other systems, and dropping the stack ranking system all together. Microsoft is one of those companies. The reason that the stack ranking system is quickly being abolished by these companies is because it doesn’t foster creativity within the workplace. This wasn’t much of an issue when it was first introduced in 1980. However, now that times change so quickly it is huge advantage to have workers who produce ideas for the company. Google is a great example of this. The employees are allowed to work on any project they want on Fridays. By using this system, Google has come up with great products which lead the market in innovation.

Yahoo is still using this stack ranking system with its employees. This is an awful idea because Yahoo is being used less in comparison to companies like Google. Having employees mindlessly working on their projects with fear of losing their jobs is not a great way for the company to make a comeback. Instead they need ideas to differentiate themselves from other companies in order to dominate more of the market.

Article Citation:

Avram, Abel. “Microsoft Ditches the Stack Ranking System. Yahoo! Lays off 600 Because of It.” Microsoft Ditches the Stack Ranking System. Yahoo! Lays off 600 Because of It. Contegix, 16 Nov. 2013. Web. 16 Nov. 2013. <http://www.infoq.com/news/2013/11/stack-ranking-microsoft-yahoo>.

Image: http://www.businessinsider.com/marissa-mayer-is-firing-500-under-performing-yahoo-employees-2013-10