Jack Welch termed the theory of forced rankings in his book “Straight from the Gut”. Contrary to popular belief he wasn’t an advocate of terminating workers indiscriminately.
The belief is that 20% of the employees are the highest producers and should be recognized and compensated as such. 70% are the middle of the pack and worth saving. The bottom 10% of people aren’t performing. This is called the 20-70-10 approach. The idea is to constantly upgrade the bottom 10%.
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