Steve Ballmer Microsoft

More change is coming to Microsoft.

The company just announced that it’s killing the controversial stack-ranking system for employees.

A Microsoft employee told us that while many people will focus on the death of stack-ranking, the bigger story here is that Ballmer is losing power.

Stack-ranking is Ballmer’s system for rating employees. Our source says Lisa Brummel, who runs HR at Microsoft, was never terribly fond of stack ranking.

Now that Ballmer is out, so is stack-ranking.

Stack-ranking was a bad system that caused widespread problems for Microsoft.

Essentially, the way it worked was that Microsoft managers had to rank their employees with a 1-5 ranking. No matter how good the employees were, some of them had to get the low-ranking of a 5. Seeing even good employees get a 5 hurt morale at Microsoft.

There was also a knock-on effect to stack-ranking. Brilliant employees didn’t want to work together. Imagine this: You’re a talented engineer. The best in your group. Do you want to go to another group of talented engineers? Someone in that group is going to get a 5, and it could be you.

If you got a low-ranking, then your earning — For more information read the original article here.

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