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Rankings and Forced Ranking Systems

HRM 538 "Performance Management"
Week 8 Discussion 1: "Rankings"
1. Compare and contrast forced, absolute, and relative rankings. Determine one pro and con for each.
2. Evaluate the pros and cons of a force ranking. Determine whether you are for or against a force ranking system.

Week 8 Discussion 2: "Forced Ranking Systems"
1. Analyze ways in which a forced ranking system could be leveraged to support a performance improvement initiative. Provide specific examples to support your response.
2. Analyze your current (or anticipated) work environment as an Administrator and recommend an alternative to a forced ranking system. Provide specific examples of why your recommendation would be better.

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Step 1
Forced ranking system means intense annual evaluations are used to identify the best and the worst performing employees using person-to-person comparisons. In case of absolute ranking system objective criteria is used to rank employees. In relative ranking detailed measures are reduced to ranks and this enables the comparison of the performance of one employee to another.

The pro of forced comparison is that it helps shake employees from their inflated performance ratings and reduces favoritism. The con is that the company can make mistakes in forced ranking and firing good employees. The pro of absolute ranking is objective and fair criteria are used for ranking. The con is that a slight difference in scores can lead to large difference in ranking. For example, if a company rates those that get scores of 90% and above as A and those that get less than 90% as B, a person getting 89% can be at a serious disadvantage. The pro of relative ranking is that it ...

Solution Summary

This posting gives you a step-by-step explanation of the special advantages and problems of forced ranking evaluation systems. The response also contains the sources used.