Amazon performance management system aims to push the limit of each employee because Jeff Bezos – the founder of this company believes that the performance of every single person will have a significant effect to the success of the whole company. As the result, this company is very strict about maintaining the employee’s quality. Although the purpose is good, the way Amazon uses to evaluate its employee performance creates many adverse impacts. When applying the “Anytime Feedback” tool and “Stack Ranking”, besides the benefits of these evaluation tools, the drawbacks have still existed.
These systems put too heavy pressure on employee and create a toxic environment where people lose truth of others and sabotage their coworkers to keep the position. If those things continue to happen, it will generate a negative culture and demotivate employees that will lead to lower performance. To solve those problems, Amazon should not only focus in retaining high-quality employees but also banning anonym feedback, giving ongoing advice to help employees improve themselves rather than eliminating them base on system result and not consider other factors. If the Amazon is not changing their performance management system, they might have a bad impression from both employees and customers as well.