Depending on preparation,the forced ranking performance review system may have negative effects on morale,productivity,and loyalty or it may encourage managers to identify and remove poor performers.

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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 the system is imposed on an organization without sufficient preparation,it can pit employees against one another and produce shocks to morale,productivity,and loyalty.

Depending on Preparation,the Forced Ranking Performance Review System May Have