Tomahawk, WI 11/14/2013 (BasicsMedia) –  The world’s largest software company Microsoft Corporation (NASDAQ:MSFT) has killed its much-criticized employee ranking system which was famously known as 20-70-10 ranking. The company had been criticized over the system for lack of its clarity in employee promotion and appreciation. The outgoing CEO Steve Ballmer championed the system. As a result of dissatisfaction with this ranking system, the software giant is reported to have lost many of its employees, perhaps some of its very best. It has been pointed out that the struggles which the company is presently going through could have their roots in the stack ranking system.

The system was such that employees could be ranked as underperformers and risk dismissal regardless of the contribution. As a result, internal wrangling among the employees grew, thus taking the picture out of the external competition. Infighting among employees was because one wanted to please the management to climb up the job ladder and that could come at the expense of other vital factors. A lot of employees left Microsoft Corporation (NASDAQ:MSFT) because of this. As now Ballmer retires, and the company acquiring Nokia’s handset business for about $7.5 billion, there had been growing agitation against the system. While the company has now officially announced the death of stack-employee ranking, the damage is already done and more, a replacement system is yet to be announced.

As competition in the tech industry turn red-hot, companies have been seeking to poach talents from rivals to bulk up their standing against the competition. A lot of MSFT engineers left in this process. Now that the software giant has scrapped the system, it could be the best time to get back its talents.

MSFT is acquiring Nokia’s mobile business to enhance its position in the hardware segment. This acquisition deals is yet to be concluded. The $318.52 billion capped company is also in the process to recruit a new chief executive officer to take over from Ballmer who retires in less than 12 months.

The company has been trying to bolster its revenue in the competitive enterprise cloud solution as well as other applications. At the same time, MSFT is seeking to cut its operation cost to lift its net income. The company’s PC because revenue has continued to decline. It’s making spirited efforts to improve its mobile business which is pretty much promising.

The new head of the company after the present CEO leaves will have to work on improving its revenue stream while driving down the cost. The company’s hands in music service also require support to ensure that it becomes a sustainable revenue source. Apple Inc is the internet music service provider to enter the competition which currently Pandora dominates.

The company has also been seeking to invest in clean energy to power some of its data centers. If these investments succeed, it would be able to make significant savings on electricity utility bill. Also, its reputation as a clean energy compliant company would earn it expanded business opportunity.

Through the year so far, Microsoft Corporation (NASDAQ:MSFT) has maintained a steady stock price. This reflects the transformation efforts which the company has lately been into. Due to this impressive stock rally this year, MSFT’s contribution in S&P 500 index gain has been significant that it could oust Apple from the top spot as the higher contributor to the index’s gain.

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