Yahoo's dumb - but smart - way of judging employees

From MoneyWatch:

Managers, you may rate 10 percent of your people "superior performers," 40 percent as "exceeds expectations," 40 percent as "meets expectations" and the remaining 10 percent as "below expectations." Sound familiar? This breakdown is known as a "stacked ranking" or "forced bell curve ranking."

Microsoft (MSFT) was one of the many big companies that used this method to classify how their employees perform. No more. The software maker has declared that approach a failure and scrapped it at precisely the same moment that Yahoo (YHOO) is embracing it...

But, what is so bad about stacked rankings?


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