I thought there was grumbling about Ballmer adopting GE’s stack ranking employee evaluation system where every team has to grade at least some people as below par. So that led to weird incentives like not collaborating across teams, sabotage, etc.
I don't know, anecdotally I never heard MSFT employees grumbling about stack ranking. The lack of internal collaboration seemed to be more top-down, stemming from powerful execs expanding and protecting their fiefdoms.
Compare that to, say, Amazon, where stack-ranking seems to be an unofficial yet actively enforced policy. I've worked and talked with a huge number of ex-Amazon people and each and every one of them had myriad horror stories about the dysfunctional corporate culture. On the other hand, MSFT employees seemed to have much more balanced experiences.