Jack Welsh – legenedary CEO of General Electrics ranked people in three categories
A – 20% of all employees, they are passionate, they are making things happen. They not only energise them self but also everybody around them. They create lift and they make business productive and fun.
B – 70 % of all employees, they are specialist, they do great work. They are responsible for operational excellence of company. But they lack passion and drive that A’s have.
C – 10% of all employees, they can’t get the job done.
Based on above description, you need to maintain healthy employees structure by cutting C’s, reward B’s, promote A’s and hire new ones. And employee need to constantly work on their performance in order not to fall into C’s.