A “stack ranking” employee evaluation system forces managers to pick a few high achievers, a bunch of average workers, and a few shape-up-or-ship-out employees every year. That last category of folks are told to improve or find another job, essentially.
The system was touted for years by GE. And a story in the August issue of Vanity Fair blames it for killing innovation at Microsoft, which seems unable to keep pace with the likes of Apple and Google in the tech world.
Brandon Smith explains how stack ranking leads to a focus on individual performance and individual achievements, not teamwork and creativity on this week’s Working on GPB Radio.