ORGS 2010 Lecture Notes - Lecture 9: Bottom 10, Jack Welch, Vitality Curve
27 Dec 2014
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Document Summary
Forced ranking system introduced by jack welch in 1980s. Forced managers annually to assign each of their employees to one of three categories (vitality curve: c: bottom 10, b: vital 70, a: top 20% A players: possess high energy levels, ability to energize others, have the edge to make tough decisions and consistently execute tasks effectively. B players: backbone of the company but lack passion; a lot of energy is devoted to improving these numbers. C players: fail to get the job done and are let go; enervate rather than energize and procrastinate. System forces managers to give bad evaluations to employees who may be good performers to reach pre-established percentage. Employees may become hypercompetitive to avoid being demoted (we need teamwork) Old managers may seek to find people who are retiring or others who have been told to leave the company to nominate to go in the c spot.
