A Comparative Performance Appraisal System

884 Words Oct 5th, 2015 4 Pages
Part of the forced-ranking label reflects the intent force distinctions among worker performance levels. In an absolute-rating system, everyone could be rated “above average.” Does this difference between the absolute- and relative-rating approaches mean that one of the methods (e.g. the absolute performance or the forced-ranking) of judgment is wrong?

Forced ranking is a comparative performance appraisal system where management is forced to order employees from the best to worst by comparing them to other employees in the evaluation group. This process can be completed by assigning individual employees to a small number of particular categories with quotas (i.e. most effective, average, needs improvement) or through assigning employees along a normal distribution (Gomez-Mejia, Balkin, & Cardy, 2016; O 'Malley, 2003). Even among strong caution and controversy as to the effectiveness and reliability of this appraisal method, an estimated twenty percent of firms in the United States utilize some form of forced ranking (Croson, Fatas, Neugebaur, & Morales, 2015; Medical Design, 2007; O 'Malley, 2003). Supporters of this form of performance rating argue that it actually increases the levels of employee performance by encouraging them to set meaningful goals, educating employees of desired competencies, and encouraging employees to work harder to achieve a better ranking (Grote, 2003). An absolute rating system on the other hand requires a supervisor to rate an employee’s…
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