It is rare to see a truly performance-based employment system at a company because, as this post (and the comments) show, in order to execute well you have to continuously cull the low performers from the herd. This creates a culture of fear, especially in those likeliest to be culled. This is not unique to Netflix -- each year General Electric culls the bottom percentile of its management. The trick is to have performance criteria that are clearly understood so that the process is not arbitrary and capricious. Companies that do not cull low performers tend to attract low-performers who ultimately ensure that the company itself gets culled. It's a tough world out there.
