The Tech Bet

Microsoft's nixed worker ranking policy isn't all bad

Microsoft axes employee ranking system

Microsoft is getting rid of a controversial employee ranking system hoping to encourage the development of more products consumers want, according to the company.

"These changes will encourage greater speed, creativity and teamwork to help us bring innovation to market faster and better serve our customers," a Microsoft spokesperson told CNBC.

The nixed system, which evaluated employees on a curve, identified the top performers, the lowest performers and the employees that fall into the middle of that spectrum. In some cases, the worst performers could be fired, and the fear of falling into that could hurt company morale and potentially .