Browse Definitions :
Definition

stacked ranking

Contributor(s): Ivy Wigmore

Stacked ranking is an employee evaluation method that slots a certain percentage of employees into each of several  levels of performance.  

Because the ranking is inherently somewhat arbitrary, the model is also sometimes referred to as a forced distribution. Such a model might assume a normal distribution, for example, in which 10% of employees are high achievers, 80% are satisfactory and valuable, and 10% are actually deleterious to the company.  When evaluating the staff, administrators assign individuals to those categories in such a way that the percentages assigned to each category remain constant.

One of the best-known stacked ranking systems is former General Electric CEO Jack Welch’s Vitality Curve, which assigns high-achieving employees, which he called “A players,”  to the top 20 percent, normally productive employees (B players) to the middle 70 percent level and unproductive employees (C players) to the bottom 10 percent rank. According to Welch, the top employees should be further motivated with bonuses and other rewards and the bottom 10 percent should be fired. GE has since moved away from the practice. 

Other companies that use (or did use) stacked ranking include Dow Chemical, Enron, Motorola, IBM and Yahoo. Microsoft followed the stacked ranking model for years but abandoned it in 2013 in response to employee complaints about the system.  

Proponents of stacked ranking claim that it motivates mid-range employees to aspire to top-level ranking, increases profits and clearly identifies underperformers. Critics of the model argue that it discourages cooperation, encourages unethical behavior and hampers staff cohesiveness and morale.

Thirty percent of Fortune 500 companies are said to use stacked ranking for employee evaluation. 

This was last updated in November 2013

Continue Reading About stacked ranking

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

  • smart contract

    A smart contract, also known as a cryptocontract, is a computer program that directly controls the transfer of digital currencies...

  • risk map (risk heat map)

    A risk map, also known as a risk heat map, is a data visualization tool for communicating specific risks an organization faces. A...

SearchSecurity

  • Payload (computing)

    The term payload, when used in the context of networking or telecommunications, is the data carried inside of a packet (or other ...

  • access control

    Access control is a security technique that regulates who or what can view or use resources in a computing environment.

  • ethical hacker

    An ethical hacker, also referred to as a white hat hacker, is an information security expert who systematically attempts to ...

SearchHealthIT

SearchDisasterRecovery

  • virtual disaster recovery

    Virtual disaster recovery is a type of DR that typically involves replication and allows a user to fail over to virtualized ...

  • tabletop exercise (TTX)

    A tabletop exercise (TTX) is a disaster preparedness activity that takes participants through the process of dealing with a ...

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a data center.

SearchStorage

  • storage at the edge

    Storage at the edge is the collective methods and technologies that capture and retain digital information at the periphery of ...

  • Flash Storage

    Flash storage is any type of drive, repository or system that uses flash memory to keep data for an extended period of time.

  • optical disc

    An optical disc is an electronic data storage medium that can be written to and read from using a low-powered laser beam.

Close