Is It Too Hard to Learn From The Past?

Photo Courtesy of http://russelldriscoll.com

Is ranking employees beneficial? This is the question posed by Carrie Zhou in relation to Yahoo’s decision to bell-curve its employees. Carrie rightfully pointed out the negative effects curving employees and managers. I believe that Yahoo should have learn from Microsoft. An important part of HR as we learned in class is performance management; how do employers reward high performance?

As this article about Microsoft points out, curving gives managers a quota of failing grade they must distribute. This is a cruel burden to put on managers who may not feel anyone deserves a failing grade. While well-intentioned, this ranking system misses the point. Yahoo should realize how harmful a standard ranking system has been for Microsoft. Carrie mentioned that workers tend to be unsatisfied in the ranking system. Stack ranking was described as “the most destructive process inside of Microsoft” by every employee interviewed. Ultimately, the problem stems from too much competition. The incentive to outperform everyone else to receive bonuses kills teamwork and cooperation. In turn, the creative engine of a company is hindered. Stack ranking is an HR nightmare. Admittedly, it does make bonuses easier to dish out. However, it would seem ironic to give out performance bonuses when overall performance decreases to an ill-designed bonus system.

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