The blog that I recently read on why shouldn’t managers use stack ranking to assess employees’ performance sparks my interest in motivation at workplace.

Max Nisen believes that the ranking system is terrible because it doesn’t measure the performance of employees accurately and it in fact, discourages the workers.

I totally agree with what Nisen suggests that is to new system that ranks people not in a intimidating way. Moreover, the ranking system should put more focus on “consistent feedback and how people should improve”. I believe this is crucial because simply sorting out the poor and high performers is not the ultimate goal of any company. Every manager should at least try to help those workers who are regarded as low in efficiency out so that it can not only help to improve the overall effectiveness, but also substantially reduce the staff turnover rate. Only the people who grow with the company have strong connection and loyalty to the company.

Microsoft terminates the use of stack ranking and innovate a new performance review program that promote “teamwork”, “employee growth” and etc. Their HR leader Lisa Brummel summarizes the reason for doing so: “There is nothing we cannot accomplish when we work together as One Microsoft.” This can’t be more encouraging and motivating to their employees.

Promoting such a pleasant organizational structure will help Microsoft to grow in a sustainable manner.

Here is a video on ex-Microsoft manager describes effect of stack ranking.

Source:

http://www.businessinsider.com/stack-ranking-employees-is-a-bad-idea-2013-11

http://www.businessinsider.com/microsoft-just-killed-its-controversial-stack-ranking-employee-review-system-2013-11

https://www.youtube.com/watch?v=bRuUm2yGYVg