OMG: JCP color-coding employees based on performance & potential …

News scoop from Business Insider:

“JC Penney Has Color-Coded Employees To Prepare For Future Firings”

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More scoop from the Insider:

JCPenney has split up its associates into categories based on their performance and abilities, according to sources inside the company.

Sources told us that … they were to categorize their associates into one of three categories:

  • Red — Remove from company
  • Yellow — Coach up or out
  • Green — Go forward

Managers were told to “be prepared to make decisions” in the months ahead.

Managers were also instructed to let them know if they weren’t performing up to par.

Workers are afraid that more job cuts are on the way, on top of the 19,000 workers eliminated since CEO Johnson started at the company.

“Is that really the best way to be ‘America’s Favorite Place To Work?'”

Question to Business Insider: This is news?

Well run companies have been sorting employees into ability and performance tiers fro decades … maybe centuries.

Remember Jack Welch’s policy of jettisoning the bottom 10% every year?

It would be more newsworthy if JCP didn’t have a performance management system.

Or, if JCP’s management just whined like the Obama’s Cabinet Secretaries that absolutely no cuts could be made with Armageddon.

See, that’s the difference between the private sector and the public sector

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