Many people may want to work in famous companies like Yahoo, one of the largest online searching engine corporation; but is it still the same story if Yahoo decides to rank their employees on a bell curve?

As Yahoo announced to adapt the new way to review employees’ performance, it may not affect consumers immediately, but it certainly shapes the future of the company. The impact of the employee evaluation system, whether it is positive or negative, will be significant because “people are the organization”.  For some, it might be a positive motivation to strive for higher rankings while others will be forced to work hard to stay in the job under organization’s coercive power. Although it can possibly increase overall performance, the influence on organizational culture caused by potential job dissatisfaction may not be visible in short term.

At the same time, Microsoft, which has been quite successful with its current performance evaluation system, is heading opposite direction as Yahoo where the company is getting rid of the rating and ranking system to promote the atmosphere of team work, collaboration, growth and development within the organization.

Is one method better than the other? Only time can tell.