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This is something I learn from a company President when I’m still a newbie HR Manager. He patiently explained why not everyone should be receiving the outstanding grade in performance appraisal, and  receive the highest increase.


The “10-80-10” Principle


Of your total employees, 10% are top performers and self motivated, regardless of the climate. 80%, responds either good or bad, to HR initiatives. The remaining 10% are problem employees who no longer respond to intervention.



Thru the years, I also learned how to apply the 10-80-10 principle in managing employee behavior.



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