Forced ranking (forced
distribution)
In this style of performance appraisal, employees are ranked in
terms of forced allocations.
For instance, it is vital that the proportions be shared in the
way that 10 or 20 % will be the highest levels of performances, while 70 or 80%
will be in the middle level and the rest will be in the lowest one.
Application of Forced
Ranking
GE, Ford Motor, Conoco, Sun Microsystems, Cisco Systems, EDS,
Enron and a host of other U.S. corporations have adopted similar policies of
this method.
Advantages and
disadvantages of forced Ranking
Advantages:
•
They force reluctant managers to make difficult decisions and identify the most
and least talented members of the work group.
• They create and sustain a high performance culture in which the workforce continuously improves.
• They create and sustain a high performance culture in which the workforce continuously improves.
Disadvantages
•
They increase unhealthy cut-throat competitiveness;
• They discourage collaboration and teamwork;
• They harm morale;
• They are legally suspect giving rise to age discrimination cases.
• They discourage collaboration and teamwork;
• They harm morale;
• They are legally suspect giving rise to age discrimination cases.
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