In the chapter on Virtue and Talents, Koch explains the ABC process within the Koch companies. There’s something Socratic in this heirarchy of talent and ability within the company, and it’s naive to think that all human beings behave and contribute equally, whether or not they are created that way.
Koch makes it clear that a C rating for an employee is not a condemnation of that employee. On page 90, he writes, “Inability to create value at one company does not mean the same will be true elsewhere. Employees may be much more successful in another organization that has needs or a culture better suited to their talents and values.”
There’s a maxim that Economics is extremely useful as a form of employment for economists. (From http://mungowitzend.blogspot.com/2009/04/top-20-list-things-economists-say.html#links) Among the most valuable lessons from MBM is not necessarily that MBM itself should be applied across society, but that applying economic principles may result in effectual improvements.
Employees that don’t fit in Koch Industries may fit well somewhere else and contribute largely to the aggregate knowledge of society. KII can fire people in a way that is beneficial for the company and encourages the ex-employee to find a better fit somewhere else. The idea of a government “firing” people doesn’t vibe with the science of liberty.