When Is Acceptable Unacceptable/ For years General Electric (GE) had used a ruthless eficient method for evaluating the performance of its employees. The system was widely known infor maly as the ABC approach. Each year, managers were required to sort all of their subordinates into one of hree categories. The best as much as 10 percent of the workforce made up the group the next set as much as 8 percent included those in the middle and was called the group this large group subsequently were 11111 IIIIII ITIN iiiiiiiiii iiiiiiiii broken down into smaller groupsl. The lowest 10 percent, though, was called the group and these workers lost their jobs even if they were generally seen a b iting acceptable perfor mance GE executives argued that this lowed the firm to continuously elevate the quality of the firm's human capital. Moreover, they noted, everyone knew the rules when they signed on and no one had ever sued the Americans 50 years of age and older committed to providing legal resources to those suing Goode The lawsuit named eight plaintiffs aged 55-59, who annual salaries ranged from $48.700 to $71,700. The Lawsuit claimed that hundreds of workers in more than 10 states could join if the case was granted.com action status is no surprise, then that a few other companies have tried to follow in Gefootsteps. Goodyear was one of the first its first efforts identified 2.800 employees making up the worst performers in the company. These workers were the given the walking papers. Not too long afterward, though Goodyear said was abandon ing the ABC method. WhyThe tire make became the target of an age-discrimination lawsuit that claimed that singled out too many older employees as bad workers Another big company that experimented without quidy dropped the ABC method was Ford Motor Company. The firm paid handsomely for its brief expert met when it agreed to pay $106 million to see an age-discrimination by a group of feed employ ees. Since then, most other recent adopters of the ABC system have who dropped it. One catalyst for the quick demise of the ABC system was when AARP, an advocacy group for Jim Skykora, 55, the youngest and best-paid plus tift, said in an interview that he had been designing tires for various Goodyear customers and had had all 11 of his projects approved in the 4 years leading up to his termination. He was graded as the first year the system was in place and downgraded to a Cthe next year. Although the first lawsuit ended with the court agreeing with Goodyear that the company's practice was not discriminatory, the tire maker till decided to retreat from the ABC system and revert to its old methods. 1. What is the issue or problem presented?
2. How would you address or resolve this?
