stack ranking

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As Evonomics explains, stack ranking is destructive--both in corporations and on sports teams:

Stack-ranking and other business practices of individual selection have been widespread, from General Electric to Microsoft, and is a standard modus operandi in sports teams including the focus of this piece, the European soccer team, Real Madrid. However, the wisdom behind the application of these models, both in business and sport, is under scrutiny. [...]

This mismatch of incentives for individuals within a group is most certainly an area of concern for managers of all kinds. The relevance of these findings for management strategies in industry has gained some recent publicity, mainly following a popular TED talk by Margaret Heffernan which referenced [evolutionary biologist William] Muir's original experiments with specific focus on how traditional 'pecking orders' may not be the most productive organizational structure. [...]

Research on salary allocation shows one mechanism why this can occur, finding that pay inequality is linked to detrimental issues within teams, such that teams with highly unequal salary structures tend to also elicit more negative affect for their members, which can then lead to greater within-group problems.

C-level executives receive enormous feasts, while the rest of us fight over the table scraps; signing bonuses in soccer appear to have much the same effect:

Upon review, the Galactico policy of acquiring (or selecting for) top players by paying extraordinarily large sums of money [...] is likely to attract players with a pre-existing tendency to benefit individually at the expense of the team. Indeed, while the chance to sign for Real Madrid is a flattering opportunity for any player, the likely stack- ranking environment would seem more likely to attract certain traits. Accordingly, the relatively disappointing return of trophies and high turnover rate of world class players may be a consequence of the nature of the players recruited, or the behaviors which are coerced out of players by the high incentives to be the most productive or stand out performer.

Perhaps this in-group rivalry leads to an excess of competing against each other rather than against the opposite teams?

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This page contains a single entry by cognitivedissident published on October 14, 2016 8:27 AM.

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