Mark,who is the HR manager at People's Pulse,wants to incorporate a new method of performance appraisal.He wants to introduce a system that clearly differentiates the good performers from the average and low performers.During the same period,the company is thinking about reducing its workforce because of financial constraints.The appraisal method should help management link employee performance to their compensation and retention level.Mark is looking for a method that would clearly state whom to fire and whom not to.Which of the following approaches should he adopt?
A)Linear graph
B)Behaviorally anchored rating scales
C)Forced ranking
D)Social networking systems
E)Up-down approach

Question

Quizplus · Accepted Answer

Forced ranking is a performance appraisal method in which employees are ranked from best to worst or vice versa based on their performance. It clearly differentiates good performers from average and low performers and thus helps in linking employee performance to their compensation and retention level. In this case, where the company is thinking about reducing its workforce, forced ranking can help management identify whom to fire and whom not to. The other options are not suitable for this scenario. A linear graph may not provide the necessary differentiation between good and poor performers, while behaviorally anchored rating scales may not be as effective in linking performance to compensation and retention levels. Social networking systems and up-down approach are not established performance appraisal methods.

Mark,who Is the HR Manager at People's Pulse,wants to Incorporate