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Amazon is marking a major shift in how companies assess corporate workforce performance. The new three-tiered system with the companys 16 core values will determine everything from salary increases to potential performance improvement plans during quarterly reviews reported TOI. Amazon’s New Appraisal System From this quarters mid-year review cycle Amazon managers will evaluate employees as per three criteria like Leadership Principles adherence performance and potential. These factors combined will be used for Overall Value score that will decide employees career progression and compensation decisions. Amazon Employees On Role Model Status The initiatives are taken after CEO Andy Jassys created a disciplined workforce and improved corporate culture. Since last year Jassy has started full work from office policy reduced management layers and revised compensation models to reward top performers. According to internal documents as per Business Insider report only 5% of employees will qualify for the top ‘role model’ grade while Leadership Principles behavior will be measured. The companys spokesperson Sam Stephenson said these changes streamline the process for managers and help to ensure greater consistency. Amazon Stack-ranking System Amazon maintains its stack-ranking culture where managers categorize employees into five performance tiers as per predetermined percentages. Teams with over 50 employees must place 20% in the top tier while 5% will be designated as ‘Least Effective’. This system gained criticism as it gives managers authority to rank capable employees poorly to meet this distribution requirements. But other tech giants like Microsoft Google and Meta also have stricter performance management policies this year.