[yajoe]

Completely agree, and I didn't know this practice had spread so widely. While doing the HR-sanctioned stack ranking requires X > MIN_POP_SIZE, in practice each line manager (i.e. lead) provides a pre-sorted list up the chain for merge-sorting. That way the line managers minimize the number of arguments during the official org-wide stack ranking. Many managers have gotten good at balancing their teams with high and low performers so they come "pre-sorted" as the lingo goes. If you don't believe me, ask about "pre-sorting." The fact your manager recognizes the term should be telling... Remember, managers get graded on how well they appear to their peers in stack ranking. It's ok as a manager to have low performers so long as you are "managing them." Managers have a disincentive to overrepresent their team to their peers, and managers are perfectly fine pre-sorting their lists. Again, it's easier and better for them to do so.

The unofficial pre-sorting when X < MIN_POP_SIZE is what most individual workers notice (managers play favorites, careers are differential functions anyway), and HR has prepared the logical response (MIN_POP_SIZE is larger than your team) for managers to say when an employee asks.

It's clear that the primary effect of stack ranking is to induce churn in the org at the expense of loyalty and morale. The people making the decisions are smart, so I presume the effect is part of the strategy. My theory? Software development isn't as skilled as we like to think it is, and it's often cheaper to hire a young kid and pay a "high" entry-level salary with vested bonuses than invest in long-term employees. Think about all the unvested money that the company saves by pushing employees out before 4 and 5 year maturity cycles. Plus, actual senior engineers (not the title!) tend to say "no" more often to clueless middle management and create unnecessary headaches.

[eitally]

I think you're exactly right. The vast majority of enterprise software development is commodity work that can be done acceptably well by junior staff. The senior folks and leaders will bitch about it, but not to the point of getting themselves fired for insubordination.