Group : MI_60/23

Name : Hakimov Sardor Quvondar o’g’li

Discussion
1. Why do you think the article describes the system of stack ranking as controversial?
Stack ranking relies heavily on the managers' perceptions about the contributions of each
employee. These perceptions are often biased, which makes the performance reviews skewed
and ineffective,” she said. “Such reviews contribute negatively toward employee morale,
motivation, and productivity.”
2 What are the arguments for and against the system of stack ranking? Can you think of any more
arguments for and against this system?
1. Advantage — Embraces a meritocracy culture.
A meritocracy culture is where advancement, bonuses, and promotions are distributed based on
employee skill and merit. Essentially, employees who are the top performers and are consistently
producing high-quality work are the ones who will qualify for and be considered first for career
advancement opportunities. This helps to reduce bias in the workplace and clearly articulates
what employees need to do to become high performers.
2. Advantage — It can improve employee morale.
A stack ranking system is built on the idea of recognizing and celebrating employees who work
hard and produce great results. Several studies have found that the more consistently a leader
recognizes employees’ good work, the more engaged and satisfied they will be. Stack ranking
allows HR leaders to celebrate the wins of their top performers while also encouraging their
underperformers to improve their workplace performance.
1. Disadvantage — It can promote a negative workplace culture.
If your organization embraces stack ranking, you need to ensure you are not fostering a culture
of hyper-competitiveness. When you dictate to your team that their individual performance
impacts their ability to advance within your organization, they might be incentivized to act for
their own benefit. Ensure you balance this mindset by creating a workplace where employees
feel comfortable speaking honestly and transparently.
2. Disadvantage — The process can trigger feelings of fear and shame.
With stack ranking, leaders are forced to place their employees along the bell curve. This means
that only 10-15% of your employees can be classified as your highest performers, even if more
people fall within this category. When your performance management strategy becomes more
subjective rather than objective, employees can quickly become disengaged or feel anxious at
work. These negative feelings can lead to employees being dissatisfied with their roles.
3 Overall, do you think it is a good or bad system? Why?
This is a great idea as it creates healthy competition among the employees and young employees
or workers are pushed forward to improve their knowledge and skills. Employees with good
results should be encouraged at the end of the month. I work as a cashier at Technomart. In my
office, the monthly salary increases depending on the knowledge and skills