Employee Review/Feedback

Grading on a Curve Undermines Performance

Posted by on Jul 18, 2012 | 0 comments

Microsoft offers a lesson on how not to conduct performance reviews. Its evaluation process, called “stack ranking” — essentially grading on a curve — has had a disastrous effect on morale, performance, and innovation, reports Kurt Eichenwald in “How Microsoft Lost Its Mojo.” His article in the August Vanity Fair describes a system in which managers are permitted to give only a few employees top reviews, while the majority receive mediocre reviews, and a few receive poor ratings. This structure sets up a competition among employees and fosters an...

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