Question

The performance management approach that uses job performance evaluations to identify a company's best, average, and worst performing employees, using person-to-person comparisons, is known as

Answer 1

The performance management approach that uses job performance evaluations to identify a company's best, average, and worst performing employees, using person-to-person comparisons, is known as "forced ranking".

What is forced ranking?

The contentious practice of "forced ranking," which grades employees against one another rather than against performance standards, is very popular in corporate America.

The problem with forced ranking are-

• This can lead to a lack of motivation and disengagement among employees as well as unneeded internal competition that can harm collaboration, creativity, and innovation and divert attention from market competition.
• Although contentious, forced ranking systems are legal. Employers who choose to take action based on those rankings, however, run a number of legal dangers.

The forced rankings beneficial from an employee perspective, here are reasons-

• This system teaches a manager how to assess employees objectively with the right management training.
• When the management system needs to be improved or formalised, forced rankings are advantageous.
• An essential component of business is analysing trends and developments.

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