"up or out" seems like such a strange concept - I understand the idea of trimming fat, but I've seen a firing of 5-10% annually, and it's demoralizing and terrifying as a worker.
You're basically put in a position where you don't want to do too poorly, as you're guaranteed to get fired, but you also don't want to do too well, because then you may hit your ceiling too early, end up being "overpaid", then underperform and be set up for the cull.
I've seen both, and the yearly ritual of managers coming in and tapping people on the shoulder, them walking out to never be seen again ... I hated that.
You're basically put in a position where you don't want to do too poorly, as you're guaranteed to get fired, but you also don't want to do too well, because then you may hit your ceiling too early, end up being "overpaid", then underperform and be set up for the cull.
I've seen both, and the yearly ritual of managers coming in and tapping people on the shoulder, them walking out to never be seen again ... I hated that.