Microsoft is ditching its controversial "stack ranking" system, which saw all employees judged against their peers.
The scheme required managers to rank their teams on a bell curve, with staff designated as being leading performers, decent performers or laggards – even if they felt members of their unit were contributing equally. The system was used as the basis for allocating staff rewards, but was reportedly unpopular with many workers.
According to a story from the Wall Street Journal, an email sent to staff this week by executive vice president of human resources Lisa Brummel reveals that there will be "no more curve" and "no more ratings". Instead the vendor intends to place "more emphasis on teamwork and collaboration". Managers will have greater freedom to hand out rewards to individuals and teams as they see fit.
"This is a fundamentally new approach to performance and development designed to promote new levels of teamwork and agility for breakthrough business impact," writes Brummel. "This change is an important step in continuing to create the best possible environment for our world-class talent to take on the toughest challenges and do world-changing work."
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