Microsoft instructs managers to use relative evaluation in personnel evaluations.Employees say it’s “just like a stack ranking”

Microsoft CEO Satya Nadella.

During employee performance appraisal periods, Microsoft manages to adjust individual rankings based on the relative positioning of employees within a team to ensure that too many employees receive the highest rank and associated salary. I’m looking for a job. This was revealed through Microsoft internal documents and employees.

This was requested when Microsoft introduced a new evaluation system in 2023.

But some are comparing this adjustment process to the controversial “stack ranking,” an evaluation method in which managers plot employees on a forced ranking chart (also known as a vitality curve).

It is well known that Microsoft used stack rankings during the era of CEO Steve Ballmer. But this system requires managers to rank employees from 1 to 5, and there is always someone who gets the lowest score. Stack Ranking was so unpopular within the company that it was officially discontinued at the end of 2013, and in early 2014, Satya Nadella, known for his good-natured personality, was appointed CEO.

Some employees feel that the essence of stack rankings has returned, given the instructions given to managers on how to handle performance reviews. A person involved in the 2023 performance appraisal told Insider as follows:

“What we’re telling our employees is complete nonsense. First of all, Microsoft is telling its employees that it’s no longer using stack rankings, but that’s not the case.”

How Microsoft’s performance appraisal system works

Source: BusinessInsider

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