Yahoo employees have become increasingly upset regarding the bell curve each employee is ranked on. Managers have the power to numerically rank each employee to their discretion. Not only does this makes these rankings arbitrary and inconsistent but there are no parallels between a ranking system and improved work. Using a bell curve or other forms of rankings for employees is becoming more and more unpopular. In 2011 only 5% of the highest earning companies were using a forced ranking system. For yahoo it is systemic as the people on the lower end are often fired. Forcing employees against each other puts a negative twist to the workplace. Yahoo, a company that is in dire need of creativity this is exact practice that will stop it. Employees fear for their jobs and want to ensure their safety in the organization. They are less likely to take risks.
Using any formal ranking system causes animosity and tension. Often, we have learned in OB, a manager’s and employee’s perspective on their performance do not match up.This will only cause further resentment and decrease productivity in the workplace. Yahoo’s CEO needs to reflect on her practices as they are outdated and conclusively do not help Yahoo’s working environment.
http://www.businessweek.com/articles/2013-11-12/yahoos-latest-hr-disaster-ranking-workers-on-a-curve#r=rss