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Chris P

As a GE manager, I can report that the drop the bottom 10% of the employees is not how ratings are calculated.


Chris: The article did have quotes from GE HR managers who said that the old system has been scrapped. Now, it is also possible that Welch and others described a simplified version of the process. The business climate 10-20 years ago, I recall, was such that the cut the bottom 10% policy wasn't controversial. There was also Chainsaw Al who was famous for a similar policy.


The General Electric purges are a nice example of the problems with both trying to measure things and looking at the past performance of policies. You start with a company with a bloated and not very efficient management and removing the bottom 10% is going to be a fairly reliable way to improve management. Some of them will be good managers but most are not. Anyone who works in a publicly funded business will know the feeling.

Move forward a few years and even if 10% of your managers are bad, then picking them will be an achievement. So getting rid of what are evaluated in the bottom 10% will take a lot of good managers, causing a lot of fear and resulting in people attempting to make themselves look better rather than doing useful work.

I think everyone has underestimated the problems of data errors and missing data for big data. How many of us when forced to give information like phone numbers have typed in something at random.

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