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Yahoo's Performance Review System: A HR Disaster?

Yahoo introduced a new quarterly performance review system under CEO Marissa Mayer that divided employees into categories like "Greatly Exceeds" or "Misses". This system led to lawsuits and criticism as it was seen as biased and resulted in increased stress, low motivation, and high turnover among employees. Suggestions to improve included using more objective metrics and competency mapping, reviewing policies before launching, and providing rewards and recognition to boost employee performance and engagement.

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508 views7 pages

Yahoo's Performance Review System: A HR Disaster?

Yahoo introduced a new quarterly performance review system under CEO Marissa Mayer that divided employees into categories like "Greatly Exceeds" or "Misses". This system led to lawsuits and criticism as it was seen as biased and resulted in increased stress, low motivation, and high turnover among employees. Suggestions to improve included using more objective metrics and competency mapping, reviewing policies before launching, and providing rewards and recognition to boost employee performance and engagement.

Uploaded by

babar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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YAHOO’S PERFORMANCE REVIEW SYSTEM:

A HR DISASTER?

Compiled & Presented By:


Under Guidance of:
Priyanka Jha (11503062)
Simran Kaur (11503429) Ms. Tanya Nagpal
Anishka Jaiswal (11504049) Asst. Professor, MSOB,
Babar Bashir (11504681) LPU
Aishwarya Raj (11504827)
Introduction

 2012: Marrissa Mayer joins as the new CEO.

 Focused on reviving the company from deterioration and cost


cutting.

 Introduction of Quarterly performance review.


 Dividing employees into categories:
Greatly Exceed, Exceed, Achieves, Occasionally Misses, Misses
 This biased administration system was highly and totally criticized.
Resulted in lawsuit, pressure, demotivation, insecurity and constant
danger of sustaining amongst the employees.
Problems

 Rank and Yank policy (criticized in the media).

 High stress and increased turnover.

 Employees low on motivation

 Decreased performance.

 Less growth opportunity.


Problems
 Introduction of ruthless and biased administration
system.
 Company is being highly criticized- ruining brand name
and makes it a harsh and a troublesome place.
 Company facing lawsuits.
 Improper categorizing of people.
Suggestions
 Employee friendly policies:
KPI, Performance Appraisals, Feedback, MBO etc.

 Competency mapping techniques:


Assessment Centers and Development centers, Critical Incidents
Technique, Psychometric tests etc.

 Review the Policy:


Prior checking of the correctness of policy before launching.

 Rewards and recognition:


Provide opportunities, Magnify recognitions, facilitate peer to peer
recognition.
Conclusion
There is no doubt that employees are the most valuable assets of an
organization. In order to keep employees motivated to perform and
give their best to the organization, management needs to step
forward and develop channels for better communication. Continuous
feedback and proper management can have a great impact on the
performance of an employee.It is important to understand and
highlight the competencies of employees so that they get a chance
to introspect themselves and understand their position and role in a
better way.

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