“Under the controversial ‘Quarterly Performance Review’ (QPR) system, Yahoo! managers are required to rank employees along a bell curve, meaning that half the workforce will be ranked as meeting expectations (or, in Yahoo’s terms, ‘Achieves,’) while at least 15 percent must be ranked below the average (either as “Occasionally Misses”or ‘Misses.’),” wrote Holly Jones in an article at www.hr.blr.com.

This is similar to Microsoft’s “stack-ranking,” system, which was recently abandoned. It was an example of another system that does a decent job of recognizing the highest achievers. However, it punishes everyone who works on the same team as an achiever.

These systems are also frustrating for managers. Imagine you’ve done an incredible job managing your team and worked hard to create a roster of superstars. Now imagine your company’s policy says you have to give at least 15% of your team a below average grade.  

If you have any questions about performance reviews or what 360 performance appraisals can do for your company, please contact us any time.