Forced ranking is a management technique designed to evaluate employees’ work efforts so that they fall in to one of three groups. The “top” group comprises the most efficient, most productive employees, and generally amounts to 10%. The “middle” group is by far the largest, comprising 70% of the company’s employees…
1. What’s your opinion regarding forced ranking performance appraisals? Forced ranking, generally defined as a curve that leadership creates by assigning credit with “certain proportions of the production to proportions of a producing population” (“Wikipedia”), would most likely be of great benefit to a floundering company. After one or two years of culling the very bottom (i.e. least productive) employees from the pack, the company ought to see substantial improvement in productivity and efficacy. Such a move, if conducted properly, should certainly be enough to set the company right and enable its continued existence. However, forced ranking is not advisable as a long-term solution. Quite simply, this is because once you have sifted all of the chaff from the wheat, all you’re left with is wheat. That is to say, if you cull effectively, eventually all you’re left with is the good stuff. By continuing to dismiss employees based on forced ranking, eventually the company would be eliminating effective, productive employees, because that would be all that was left. ...
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