Each individual was evaluated by their manager on a strict 1 to 5 scale. Microsoft implemented this system to increase fairness in their performance evaluations. The evaluation system caused employees pursued their own ideas and interests and not the teams. Employees became lost in favoritism and bureaucracy and team performance suffered (Jones, 2010, p. 315, 316, & 330). The situation even caused the employees to work against each other in attempts to get the best evaluations (Ricklies, 2001). During this crisis Microsoft lost many of its top engineers to competitors. Some left to start their own companies. All this happened because the organization created an evaluation system that no longer rewarded or motivated their employees (Jones, 2010, p. 330).
Critical Thinking Question 2: Microsoft today is most likely in the growth through collaboration stage. How do you recommend it changes its structure, culture, and control systems to solve its problems at this stage? Greiner’s Growth Through Collaboration stage should put the emphasis back on spontaneity in the management and teams. The Collaboration stage shifts control back to social control and self-discipline. The organizational structure should recreate an environment that will motivate the employees by