![]() “It existed in more or less the same form since I started at the company in 1979,” GE’s head of human resources, Susan Peters, told Quartz. M any large corporations - including IBM, Microsoft, GE, and Accenture - have done away with the practice in the past several years as a result.įormer GE CEO Jack Welch popularized stack ranking more than 30 years ago. In a USA Today interview from 2005, he described this system as “taking care of your very best, being sure the valued middle is cared for, and weeding out the weakest.” He considered the strategy an act of kindness that let employees know where they stood.īut under new management, GE decided to eliminate formal, forced ranking about 10 years ago, according to Quartz. ![]() Gripes against stack-ranking systems aren’t isolated to Yahoo. Our performance review process was developed to allow employees at all levels of the company to receive meaningful, regular, and actionable feedback from others.” A spokeswoman told Business Insider: “Fairness is a guiding principle of our annual review and reward process. Yahoo would not comment on the lawsuit but stands by its performance-review system. He says the rules implementing the QPR process were vaguely drawn, were communicated on a need-to-know basis, differed from department to department, and would change quarterly to achieve headcount-reduction targets.Īnderson further alleges that even if all employees on a team were performing well or at the same level, managers were required to place some of them in “occasionally misses” and “misses” buckets, resulting in good employees being let go. In the lawsuit filed on Monday, former Yahoo editor Gregory Anderson accuses Yahoo of implementing its performance-review system knowing that stack ranking had been criticized and rejected by larger employers because it was “subject to abuse, often resulted in claims of discrimination, and needed to be closely monitored in application and effect.” Now, as Mayer comes under fire from investors over Yahoo’s management and insufficient turnaround, Yahoo also has a lawsuit to contend with surrounding its controversial QPR system. Shortly after joining the company in 2012, she implemented the employee-performance-review process, which had managers score their employees and distribute them into “greatly exceeds,” “exceeds,” “achieves,” “occasionally misses,” and “misses” categories, with a target percentage of employees to be distributed into each. ![]() ( Business Insider – February 3, 2016) – Around the time proponents of stack ranking like Microsoft and GE were ditching the system in favor of more employee-friendly management strategies, newly appointed Yahoo CEO Marissa Mayer embraced the strategy with the unveiling of her quarterly performance-review (QPR) system. ![]()
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