This system is a very bad idea, because it fails to address (or even mention!) the Peter principle: "In a Hierarchy Every Employee Tends to Rise to His Level of

This system is a very bad idea, because it fails to address (or even mention!) the Peter principle: "In a Hierarchy Every Employee Tends to Rise to His Level of Incompetence." You could have someone who is just great in job description X, but you promote them to Y and they suck at it. I see this all the time. Not everyone's goals are the same as your goals. It's crucial that a manager try to understand his employee's goals and motivations, without imposing his own. There's also an implicit assumption that we should derive most of our satisfaction from our jobs. It's okay to have a job that's "just a job", while doing interesting hobbies or side projects.