Sources and Acknowledgements:
Most of the below text is adapted (directly and indirectly) from the below URLs. So all credit to the authors of the below articles for the upcoming text.
2. Microsoft employees who all cited stack ranking as the most destructive process inside the software giant.
2. Stack ranking is a process where each business unit's management team has to review employees' performance and rank a certain percentage of them as top performers, or as average or poorly performing. Former Microsoft employees have claimed it leads to colleagues competing with each other, especially when some employees in a group of individuals need to be given poor reviews to match the method.
What kind of changes in Performance Management System were embraced by Microsoft?:
2. More emphasis on employee growth and development. Through a process called “Connects” we are optimizing for more timely feedback and meaningful discussions to help employees learn in the moment, grow and drive great results. These will be timed based on the rhythm of each part of our business, introducing more flexibility in how and when we discuss performance and development rather than following one timeline for the whole company. Our business cycles have accelerated and our teams operate on different schedules, and the new approach will accommodate that.
3. No more curve.We will continue to invest in a generous rewards budget, but there will no longer
be a pre-determined targeted distribution. Managers and leaders will have flexibility to allocate rewards in the manner that best reflects the performance of their teams and individuals, as long as they stay within their compensation budget.
4. No more ratings. This will let us focus on what matters – having a deeper understanding of the impact we’ve made and our opportunities to grow and improve.
Around what time-frame were the changes brought in:
Around the year 2013-14