Question

Eddie was surprised to learn that not everyone would receive a bonus this year. Instead, management planned to rank all of the employees in Eddie’s division and award bonuses only to the top 20 percent in terms of sales. Eddie’s company is using a(n) ______ performance review system.

Answer 1

Answer: Forced Ranking

Explanation:

What is forced Ranking ?

Forced ranking occurs when ranking of the employees' performance is done by comparing them against each other instead of using particular measured standards.

Under this process employees are subdivided into three groups which can be group A, group B and group C.

- Group A represents the employees which are more involved, driven and passionate, open to cooperation and giving their best to their work. They don't make a large number usually approximately only 20%.

- group B represents those employees who are not as passionate and driven as the Group A but they are vital asset to the company for it to prosper this is the large number almost 70% of the employees.

- Group C represent those employees who are least motivated and they are at the last line of like 10% of the company.

- it can create animosity between workers however it any also encourage workers to work hard to be the most motivated and committed individuals also .

Answer 2

Answer:

Straight ranking performance review system

Explanation:

"This compares all employees to each other, ranking them from best to worst. Whilst it may be easy to see who’s a high flier and who’s not making the cut, everyone in the middle will be harder to rank."

Reference: Manager, Fleur TuckerContent. “6 Types of Appraisal System - Which Is Best?: CitrusHR.” Citrus HR, 2019