Question: Please answer this question a bit elaborately.. need help.. 1 . Would you like to work under an ABC system? How would you feel about
Please answer this question a bit elaborately.. need help.. Would you like to work under an ABC system? How would you feel about using the ABC approach for a group of your subordinates?
When is Acceptable or Unacceptable?
For years, General Electric has used a ruthlessly efficient method for evaluating the performance of its employees. The system is widely known informally as the ABC Approach. Each year, managers are required to sort all of their subordinates into one of three categories. The best, as much as percent of the workforce makes up the A group; the next set, as much as percent, includes those in the middle and is called the B group this large group subsequently gets broken down into smaller groups.
The lowest percent, though, is called the C group and these workers lose their jobs even if they are generally seen as exhibiting acceptable performance. GE executives argue that this allows the firm to continuously elevate the quality of the firm's human capital. Moreover, they note, everyone knows the rules when they sign on and no one has ever sued the company over its practice. It is no surprise, then, that a few other companies have tired to follow in GE's footsteps. Goodyear was one of the first. Its first efforts identified employees making up the worst performers in the company. These workers were then given their "walking papers." Not too long afterward, though, Goodyear said it was abandoning the ABC Method. Why? The tire maker became the target of an age discrimination lawsuit that claimed it singled out too many older employees as bad employees.Another big company that experimented with but quickly dropped the ABC method was Ford Motor Company. The firm paid handsomely for its brief experiment when it agreed to pay $ million to settle an age discrimination suit. One catalyst for the quick demise of the ABC system was when AARP, an advocacy group for Americans years of age and older committed itself to providing legal resources to those suing Goodyear. The lawsuit names eight plaintiffs from ages who annual salaries ranged from $K to $K One of the youngest and highest paid plaintiff said in an interview that he had been designing tires for various Goodyear customers and had all eleven of his projects approved in the four years leading up to his termination. He was grade as a B and then the next year grade C The lawsuit ended with the court agreeing with Goodyear that their practices were not discriminatory, but the tire maker still decided to discontinue to the ABC system.
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