The forced ranking performance review system may have negative effects on morale, productivity, and loyalty.

Question

Quizplus · Accepted Answer

Proponents of forced ranking say it encourages managers to identify and remove poor performers and also structures a predetermined compensation curve, which enables them to reward top performers.If, however, the system is imposed on an organization overnight without preparation, by pitting employees against one another, it can produce shocks to morale, productivity, and loyalty.

The Forced Ranking Performance Review System May Have Negative Effects