Employee reviews@MSFT
The mini-microsoft blog is worth being thoroughly read, mainly because of the comments! Yes, that's what I said. Blog comments better than its content. Unfortunately, with massive volume, the blog makes for some time-consuming read.
For today, I picked up the two entries on employee review:
Microsoft's 3.0 (or, How I Learned to Stop Worrying and Love The Curve); and
Microsoft Stack Ranking is not Good Management
Employee review systems fascinate me. As I've written before, I believe organizational units (teams, companies, individuals, partners) maintain (just?) the efficiency required by its surrounding environment. It's the Invisible Hand all over again.
What is so interesting about employee reviews, is that these are artificial inputs on a dynamic system. Employee reviewsbonuses[1] exist only to leverage the intrinsic egoism, of individuals, on behalf of the company. They spark the Invisible Hand. As any artificial input on a dynamic system, review systems are fraught with misconceptions, wrong designs, misadapted assumptions or generally leaky abstractions. Artificial inputs on dynamic systems are difficult.
All of this makes reading on Microsoft's review system quite interesting indeed. I was quite surprised to find out it is pretty primitive. It's a ten point scale, vertical feedback, bell curve-fitted yearly evaluation:
The bell curve fitting -- stating that 30% of the team must have 3.0, and no more than 10% may have 5.0 -- on the other hand, is a clear Magnum .357 shot on the foot. You are effectively stating there are no 100% excellent teams on your company (and no dumbass teams either).
Selected comments, with good points:
Notes:
[1] Employee reviews are as effective as the end result in employees' pockets. That may be as a result of a bonus or a promotion. Promotions can be delayed but not too much. Bonuses can be smallish, but never ridiculous. I once saw a company's review system reduced to shreds in five minutes when the audience noticed the yearly bonus ammounted to 25% of the monthly wage. Don't make that mistake.
For today, I picked up the two entries on employee review:
Microsoft's 3.0 (or, How I Learned to Stop Worrying and Love The Curve); and
Microsoft Stack Ranking is not Good Management
Employee review systems fascinate me. As I've written before, I believe organizational units (teams, companies, individuals, partners) maintain (just?) the efficiency required by its surrounding environment. It's the Invisible Hand all over again.
What is so interesting about employee reviews, is that these are artificial inputs on a dynamic system. Employee reviewsbonuses[1] exist only to leverage the intrinsic egoism, of individuals, on behalf of the company. They spark the Invisible Hand. As any artificial input on a dynamic system, review systems are fraught with misconceptions, wrong designs, misadapted assumptions or generally leaky abstractions. Artificial inputs on dynamic systems are difficult.
All of this makes reading on Microsoft's review system quite interesting indeed. I was quite surprised to find out it is pretty primitive. It's a ten point scale, vertical feedback, bell curve-fitted yearly evaluation:
- There is no 360º evaluation, so peers and subordinates do not affect review.
- The bell curve fitting is an uniformization corporate-brain-death toll. (Tom de Marco defines it much better than I do)
The bell curve fitting -- stating that 30% of the team must have 3.0, and no more than 10% may have 5.0 -- on the other hand, is a clear Magnum .357 shot on the foot. You are effectively stating there are no 100% excellent teams on your company (and no dumbass teams either).
Selected comments, with good points:
- Don't tell people they're average. Tell them they're exceptional or tell them nothing.
- (here's why).
- Curve fitting bites great teams.
- Poor managers kill vertical evaluation.
- Middle managers should compete for employees:
Bottom line don't work for bozos. There are non-bozo groups at Microsoft. Find one and get hired by it.
Hell will freeze over before a majority of people do this, but one can dream... Most people will whine and sit down. - Review systems should be visibly connected to customer satisfaction. Again here and here.
- How do success-prone teams react to curve fitting reviews?
- Teams as temporary formations (A manager's perspective).
Notes:
[1] Employee reviews are as effective as the end result in employees' pockets. That may be as a result of a bonus or a promotion. Promotions can be delayed but not too much. Bonuses can be smallish, but never ridiculous. I once saw a company's review system reduced to shreds in five minutes when the audience noticed the yearly bonus ammounted to 25% of the monthly wage. Don't make that mistake.
JHB, SOUTH AFRICA
Dear:
URGENT AND CONFIDENTIAL
In appreciation of your esteemed contact which I got through a reliable source and the choice of your country for investment, let me introduce myself.I am Prince TONY MABUZA[JUNIOR} the eldest son of RINCE TONY MAUZA from zimbabwe, in southern part of Africa. My father was amongst the few black farmers who were assassinated in Zimbabwe ,by the agents of the ruling government of President Mugabe for their alleged support and sympathy for the Zimbabwean oppsition party ,which is dominated and controlled bywhites. He was also alleged to be involved in the smuggling of the country's Gold and Diamond resources. The assassination arose from the land dispute in Zimbabwe.
This land dispute was caused by President Mugabe's introduction of new land policy which adversely affected the rich white farmers . some blacks vehemently condemned the land use act introduced by the government, this problem metamorphosed into a serious and uncontrolable mayhem and killings of all war vetrans by the political thugs. Few week before these awful tragedy, my father out of intuition felt that some like things might happen and had to take the sum of of US$22 Million Twenty-two million united states dollers} which he has saved from his hard earned job into a metal box.
He made arrangement and moved the box and the rest of my family to South Africa. He stayed back in Zimbabwe to know the outcome of the land use act introduced by the administration of PRESIDENT ROBERT MUGABE. My father intended to use this cash for establishment of new farms in Lesotho and Swaziland { neighboring countries}.On our arrival in south Africa,we immediatly deposited this box in a Security Company and all the legal documents to this effect was handed to us. We did not let the company know the actual content of the box just like we were directed by our father, pending on when he will come over South Africa. After one week, we learnt the assasination of my father and the burning down of our house by political thugs, since then, we have been living in South Africa as refugees having sought for that status on political grounds.
Subesequently,South Africa Development Community S.A.D.C) has continually supported President Mugabe's new land policies.It is against this reason that we have jointly made up our mind to seek for a foreign assistance from outside, to re-invest this money by transferring it out of this country [south africa].this idea gave room for this proposal which i believe you are reading with a rapt ention. Now as the eldest son of my father, I am faced with searching for a prospective and willing person to assist me in the transfer once the person is willing to get into certain legal agreement with me and to genuiely assist me without the intention of diverting the fund from his/her account to another without my knowlegde there by rendering me and my family financially helpless.
In a joint agreement between my humble mother, my legal adviser and my self, we have jointly accepted to offer 15% of the total sum, if you help us transfer this money.And 5% will be set aside to off -set any bill or expenses that might be incured in the courseof this transaction, and 80% will be for further investment in your country .please be aware that this transaction is 100 % risk-free as modalities for the easy and smooth transfer of this fund have been arranged.
Thank you as I look forward to getting your reply.
Best regards,
PRINCE TONY MABUZA [JUNIOR
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