Most companies believe that competition drives employees to improve performance and motivate them. Ranking among employees is widely used in large corporations, like Cisco, General Electric, because they believe this can help improve productivity. Employees in those companies are ranked into levels by their supervisors in every department, in which, employees in top ten percent are rewarded or promoted, those in bottom ten percent are threw out, and thirty to fifty percent of them in the middle will have a feeling of both fear and hope. But this is a common mistake. Competition makes employees, who are under the threats of being laid off, losing incomes, or being publicly humiliated, full of fears even when they are faced with simple tasks, and makes it impossible for inspiration and creation to happen.
Many companies use employee ranking systems, believing competition drives performance. This practice, found in corporations like Cisco and General Electric, involves categorizing employees into levels, with rewards for the top 10% and dismissal for the bottom 10%. However, this approach can lead to fear, hindering inspiration and creativity, rather than motivating employees to excel.
