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Forced Ranking System of Performance Mgmt
Human Resources » Performance Management

Chrm Message From: msantos Total Posts: 35 Join Date: 18/10/2006
Rank: Executive Post Date: 02/12/2013 22:53:03 Points: 175 Location: United States

Dear community,

Forced ranking systems direct managers to evaluate their employees' performance against other employees, rather than the more common (and often grade inflated) measure of evaluating performance against pre-determined standards. The result of such a process is often brutally blunt: The top 20 percent of performers are amply rewarded, and the bottom 10 percent are shown
the door.

Supporters such as former GE Chairman Jack Welch argue that forced ranking creates a true meritocracy, while critics charge that a "rank and yank" approach is unfair to people performing at an acceptable level and creates an unhealthy cult-of-star culture.

However, such an approach may not be correct for all companies nor something that should and can be done year on year basis.

I would like to have your views whether the future HR PMS should advocate such an approach or it must be more-so on a seniority basis or other methods per se.



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