Stack ranking is a common process that managers use on employees to rank their performance on a bell curve. As a result, employees are either fired or pressured to leave the Company. Clearly this is not a comfortable or friendly environment to be working in, and because of this, it has been a growing controversial issue. Essentially, managers are making their employees compete against their coworkers to perform better, and this leads to a lack of collaboration within the company. Teamwork is essential for the success of the company, making this system have a negative impact on corporations.

A large corporation like Microsoft has now decided to end this system of evaluating their employees. From 2009 to 2011, the percentage of company’s using this system decreased by 35%. More and more corporations are realizing that this system is neither fair for the employees nor efficient for the success of the company.

It is important for business’s to give feedback in a positive, yet informative way. Employees who are respected and encouraged will be more inclined to perform better because they care about their work and the Company that they work for. Overall, the working environment would be more optimistic and productive.

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