With introduction of compulsory low rating, IBM has officially introduced yearly firing 10 pc of it’s workforce! Too bad!

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I would like to respectfully share some concerns that were raised during the recent office hours discussion regarding the 15-70-15 forced distribution model for performance reviews.

Many employees are worried about the impact of placing a fixed percentage of individuals into the bottom 15% category. The primary concern is that this system evaluates performance on a relative basis rather than against absolute, role-specific expectations. As a result, capable and committed employees may be labeled as low performers simply due to comparison dynamics, rather than genuine underperformance. This can lead to significant stress, demotivation, and a sense of injustice.

It was mentioned that relative grading has historically been used in academic settings and by organizations such as IBM. However, the comparison between academic grading and performance evaluation in the IT industry may not fully align.

In academic environments, there is substantial standardization: students study the same material, are taught by the same instructor, take the same exams, and are evaluated using predefined answer keys and marking schemes. This creates a relatively level playing field for comparison.

In contrast, the software industry operates in a highly variable environment. Employees differ in project complexity, technology stacks, client demands, managerial support, team collaboration, visibility of work, and even personal circumstances. These factors significantly influence outcomes and are not uniform across individuals. As such, directly comparing employees through a forced distribution framework may not accurately reflect true performance or contribution.

Additionally, such a system may unintentionally:

Encourage unhealthy internal competition

Reduce collaboration and team cohesion

Increase anxiety and disengagement

Create perceptions of bias or unfair treatment

While performance differentiation is important for organizational growth, a rigid forced distribution approach may not be the most effective or equitable method in a dynamic and collaborative IT environment.

A more context-aware, goal-driven, and transparent evaluation model could better support fairness, employee morale, and long-term organizational success.

Thank you for considering these concerns.

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Nice. This needs to go to the CEO.

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Oh really, They will get fired? they announce it only for GDP and PA na?

On this topic Arvind krishna said in his latest address that this doesn’t automatically mean exit but we will decide based on manager feedback and other factors! Nevertheless It would be akin to silent layoff. Nobody would want to continue once they get low rating. Plus company might use low rating as an excuse to get rid of some people.

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Please don't spread misinformation

You please go and listen to Aravind's office hours. Whatever the guy mentioned is true. He clearly quoted that like in school days Ibm employees would be compared using relative grading to follow bell curve. This really soil the culture and demotivate real hard working employees who gets low rating due to biased Management and office politics

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