Question

How effective were microsoft's human resource policies in the 1980's? discuss your analysis?

Answer 1

During the 1980s Microsoft adopted the Bell Curve Employee assessment tool, also known as 'Stack Ranking'

The system forced each department to assess their employees at the end of the year and grade them under 'top-performers', 'average' 'below-average' and 'poor'

The idea was to 'cull' employees that were not contributing and ensure high-performers get bonuses and promotions.

The system worked very well in the 80s and the 90s.

However, Microsoft's decline in the 2000s against apple was sharp and many ex-employees of Microsoft point to the 'stack ranking' system that eventually paved the way for internal politics rather than innovation.