In November 2013, Microsoft Corp. announced it had ended its controversial "stack ranking" employee-review and compensation system and no longer requires managers to grade employees against one another and rank them on a scale of 1 to 5. The most contentious aspect of this approach was its targeted, or forced, distribution In November 2013, Microsoft Corp. announced it had ended its controversial "stack ranking" employee-review and compensation system and no longer requires managers to grade employees against one another and rank them on a scale of 1 to 5. The most contentious aspect of this approach was its targeted, or forced, distribution requirements, which meant managers had to designate a small percentage of their direct reports as underperformers.
http://www.forbes.com/sites/joshbersin/2013/05/06/time-to-scrap-performance-appraisals/#6a6a880a121d
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