FORCED RANKING Forced ranking a performance appraisal system

FORCED RANKING

Forced ranking : a performance appraisal system Founded by Jack Welch, manager at General Electric in the mid of 80's

The intent To improve the performance level of an operation by dismissing the 10 percent of less efficients employees. This practice is used in 10% of companies in the U. S. and 5% of companies in France.

Ranking judgements The procedure classifies employees in 3 categories : 20% « most effective » , 10% « less effective » and 70% « average » .

The advantages of forced ranking Increasing individual performance downsizing and therefore reducing costs A relative appraisal format, which compared to the absolute Judgement, takes into account the context.

The disavantadges of this method the "forced" ranking → too rigid psychosocial risks the performance of a company depends not only on individual performance not ethical

Somes companies that used force ranking and have been convicted

« It's a natural selection system » Chris Galvin According to him, all the ecosystems run this way

Other appraisal systems Peter Drucker - competition comes from outside, not inside the company. - the power of teams: solidarity and trust Peer reviews, annual interviews, professional interviews. . . http: //www. youtube. com/watchv=Bq. VBDXqf 2 vk&f eature=related

If you were a manager. . . Would you prefer fire and then hire new potentials or train your employees to perform their competences?