As year draws to an end, employees in many, if not all, work units begin to get nervous. Companies and government organizations start to sack employees graded last in their work performance assessments. The policy is commonly known as "eliminating the last-graded (ELG)".
This method of employee management originated in Western countries and was introduced to China in mid-1990s. Under this system, all employees are graded from excellent to very poor in a comprehensive assessment of their work performance. Those at the tail end are fired.
Ever since its introduction, the practice has been blamed for being "inhuman" in terms of labor-management relations because it places all employees in constant fear of being surpassed by co-workers. Managers, however, favor the system because they claim it stimulates employees to keep improving in their work.
Controversy aside, the system is not rational, and does not result in the effective management of human resources.
First, the system is illogical.
It determines an employee's qualification by comparing his/her performance with that of others rather than gauging the performance against certain standards. In evaluating performance, some standards must have been adopted, hence the different marks every employee is given. It is highly probable that all employees measure up to the standards though there are differences.
The ELG system, however, eliminates those who rank last in disregard to their having met the standards. This means that no matter how hard one works, one cannot avoid being eliminated if others have done better.
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