The problem with stack ranking and PRP is that its subject to capture by groups with in a company that will manipulate it for their own ends - which end up being counter to the longer term aims of the company and share holders - the HR director gets a bonus for managing the pay quanta down but the company loses 10x performers.
For example when I worked at BT the PRP was done - then to make the figures work out with the the increase in pay quanta - the figures where fiddled in secret meetings.
It also leads to people playing the game - for example to help with passing his board one of my colleges at BT made that his goal and play'd the game - but as my boss ruefully commented "he hasn't done any real work for 6 months".
I have also heard of mangers having quotas of people to give bad apr's to to force them out - one rather grim story from a friend who commented "well our unit has 2 people with terminal cancer so they where put down as cat 4's"
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The problem with stack ranking and PRP is that its subject to capture by groups with in a company that will manipulate it for their own ends - which end up being counter to the longer term aims of the company and share holders - the HR director gets a bonus for managing the pay quanta down but the company loses 10x performers.
For example when I worked at BT the PRP was done - then to make the figures work out with the the increase in pay quanta - the figures where fiddled in secret meetings.
It also leads to people playing the game - for example to help with passing his board one of my colleges at BT made that his goal and play'd the game - but as my boss ruefully commented "he hasn't done any real work for 6 months".
I have also heard of mangers having quotas of people to give bad apr's to to force them out - one rather grim story from a friend who commented "well our unit has 2 people with terminal cancer so they where put down as cat 4's"