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Vitality Curve
A vitality curve is a performance management practice that calls for individuals to be ranked or rated against their coworkers. It is also called stack ranking, forced ranking, and rank and yank. Pioneered by GE's Jack Welch in the 1980s, it has remained controversial. Numerous companies practice it, but mostly covertly to avoid direct criticism. Overview The vitality model of former General Electric chairman and CEO Jack Welch has been described as a "20-70-10" system. The "top 20" percent of the workforce is most productive, and 70% (the "vital 70") work adequately. The other 10% ("bottom 10") are nonproducers and should be fired. The often cited "80-20 rule", also known as the " Pareto principle" or the "Law of the Vital Few", whereby 80% of crimes are committed by 20% of criminals, or 80% of useful research results are produced by 20% of the academics, is an example of such rankings observable in social behavior. In some cases such "80-20" tendencies do emerge, and a Pare ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Performance Management
Performance management (PM) is the process of ensuring that a set of activities and outputs meets an organization's goals in an effective and efficient manner. Performance management can focus on the performance of a whole organization, a department, an employee, or the processes in place to manage particular tasks. Performance management standards are generally organized and disseminated by senior leadership at an organization and by task owners, and may include specifying tasks and outcomes of a job, providing timely feedback and coaching, comparing employees' actual performance and behaviors with desired performance and behaviors, instituting rewards, etc. It is necessary to outline the role of each individual in the organization in terms of functions and responsibilities to ensure that performance management is successful. Application Performance management principles are used most often in the workplace and can be applied wherever people interact with their environments ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Peter Principle
The Peter principle is a concept in management developed by Laurence J. Peter, which observes that people in a hierarchy tend to rise to "a level of respective incompetence": employees are promoted based on their success in previous jobs until they reach a level at which they are no longer competent, as skills in one job do not necessarily translate to another. The concept was explained in the 1969 book ''The Peter Principle'' (William Morrow and Company) by Laurence Peter and Raymond Hull. (Hull wrote the text, based on Peter's research.) Peter and Hull intended the book to be satire, but it became popular as it was seen to make a serious point about the shortcomings of how people are promoted within hierarchical organizations. The Peter Principle has since been the subject of much commentary and research. Summary The Peter principle states that a person who is competent at their job will earn a promotion to a position that requires different skills. If the promoted person lac ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
