Performance Differentiation Method
Read narrative below, respond to the discussion, then reply to one other student.
General Electric’s former CEO Jack Welch is among the most vocal and articulate advocates of performance management systems that force turnover of the lowest-performing employees each year. At GE, it’s the bottom 10 percent of employees who are supposed to be eliminated. Mr. Welch feels so strongly about this practice that he highlighted it in his 1999 letter to GE shareholders and advocated it again in his book “Jack: Straight from the Gut”
What are your thoughts and recommendations? Would you recommend/implement this “differentiation” method, why or why not?
