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Case Code: HROB186
Case Length: 11 Pages 
Period: 2012-2017     
Pub Date: 2017
Teaching Note: Available
Price:Rs.400
Organization : Yahoo!, Inc
Industry : Internet portal
Countries : US 
Themes: Performance appraisal  
Performance Review  
Performance Management  
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Yahoo’s Performance Review System: A HR Disaster?

 
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INTRODUCTION

 
Yahoo Inc. (Yahoo) CEO, Marissa Mayer’s (Mayer) policy of quarterly performance review (QPR) came in for significant criticism by analysts in 2016 as it was used to fire hundreds of employees in the company. Some analysts felt that the approach was similar to stack ranking or forced ranking. As part of the policy, Yahoo reviewed the performance of every employee and ranked each of them on a scale of 1 to 5. The lowly ranked employees were fired.

Gregory Anderson (Anderson), an ex-editor who supervised Yahoo’s autos, homes, and shopping, small business, and travel sites was fired in November 2014. He filed a lawsuit in the Federal District Court in San Jose, California, in February 2016. He alleged that the company’s senior managers regularly manipulated the employee rating system to fire hundreds of people without a proper reason to realize the company’s financial goals. ..
 
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