There is a growing recognition as evidenced by academic literature that the adoption of best practice performance management schemes are important to attract and retain high performing talent in the workplace (MacDuffie 1995; Delaney and Huselid 1996; Delery and Doty 1996; cited in Marchington and Grugulis 2000). As described in the works of Jeffrey Pfeffer (1994, cited in Marchington and Grugulis 2000) it is believed there exists a set of universally applicable ‘best’ human resource practices which if implemented in the workplace can lead to enhanced firm performance. This implies that a one-size-fits-all recipe must be inherent in best practice human resource management. This paper challenges this notion and opposes the existence of one …show more content…
Supporting arguments will be corroborated through empirical evidence and illustrative cases available on the system of ‘forced ranking’ a popular best practice performance appraisal scheme pioneered by Jack Welch CEO of General Electric in the 1980s (Pfeffer & Sutton 2006).
Forced ranking also known as the ‘stacking system’ is a performance rating system that has arguable attracted more attention over the years than any other (Smither & London 2009). While this practice has been widely used by well-known companies such as GE, Sun-Micro Systems and Hewlett-Packard (Grote 2005, cited in Smither & London 2009) it has also been the subject of significant controversy given its rejection by companies such as Xerox and PepsiCo (Olson & Davis 2003). Forced ranking is a performance rating approach synonymous with relative rating (Smither & London 2009). This implies that rather than being appraised independently against a uniform set of performance standards employees are ranked relative to peer performance and slotted into a normal distribution bell curve or a quartile distinction (Grote 2005). This would for example identify employees in the top and bottom 25 per cent (Grote 2005) and enable managers to identify the worst and best performing employees in an organisation. The use of forced ranking as a best practice people management scheme will be evaluated in the sections
This paper will discuss will discuss rating system that judge employees on job performance. The rating systems that will discuss in this paper are the following: forced-ranking, absolute-rating and relative-rating system. The author will discuss weather forced ranking is a good performance management system, the different between the absolute-rating and relative-rating systems, an what would the author rely on as a rating system and can a absolute-rating system be devise that would guarantee differentiation among workers,
There are several ways to evaluate and manage employees. One of these means to evaluate is through forced ranking. Forced ranking places employees into predetermined categories based on their performance (Bethel, 2011). The idea behind forced ranking is to evaluate an employee and determine through that evaluation if they are a performer, need help to develop and have potential, or if the employee is not a performer, in which case the non-performing employee is let go. This process of reviewing employees for their performance gained significant popularity in the 1980’s and quite popular today. There are differing arguments that are for and also against force ranking, but like many other aspects of managing and leading employees, there are pros and cons.
Performance Assessment plays an important role in human resource management processes. However, factual evidence shows that there is a high rate of assessment failures. One of reasons leading to this issue is the illogical design of performance assessment forms. This essay firstly outlines the performance management technique using in the Performance Appraisal Form Template issued by Businessballs (www.businessballs.com). This essay will then analyse its strengths and weaknesses related to assessment validity, reliability and felt-fairness. Finally, this essay will discuss some aspects where this instrument can be re-designed to improve its validity, reliability and felt-fairness.
In the recent years, there has been a growing focus among researchers on the importance of human resource management, and on how it influences organisational performance (Boxall, 2012). The emphasis has especially been on the different HR practices that attempts to increase performance, productivity and profitability (Imran, Majeed & Ayub, 2015). It is from these practices that the term high performance work systems have emerged (Jensen, Patel & Messersmith, 2013). With regard to this term’s growing importance in the HRM literature, it would be of great interest to take a closer look at high performance work systems. This essay will therefore attempt to shed light on what a high performance work system actually is, and why organisations implement them. Using the extensive research available, we will examine both the positive and the negative outcomes a high performance work system might have. This will should present readers with a thorough view of both high performance work systems and their possible organisational implications.
When ascertaining the employees to be terminated, the dismissal criteria must be clear, consistent and fair in order to avoid legal consequences (Gomez-Mejia, Balkin, & Cardy, 2016). These authors espouse the most frequently used criteria is either seniority or employee performance, or a combination of both, with each method having advantages and disadvantages. Disadvantages relayed for using seniority is the loss of superior performers and protected class members. For this reason, Gomez-Mejia et al. (2016) believe performance appraisals are the most proficient method to retain the best employees, but they also pose greater legal risks if not properly documented.
Instead, human resource practices of ‘best fit’ are more effective when they are designed to fit certain contingencies in the organization’s specific context. Consequently, ‘best practice’ is perceived to improve performance within an organization when a select bundle of policies is implemented and the employees are managed more efficiently. Jeffrey Pfeffer’s (1994) work under this conception offers a list of seven practices assumed to be most beneficial to an organization for achieving competitive advantage ‘through people’. (1) The importance of employment security is emphasized because it is unrealistic to expect such hard work and commitment from employees without some expectation of security on their part. (2) Selective hiring is a source of sustainable competitive advantage through its “capturing” of particularly exceptional human talent (human capital). (3) Self-managed teams require efficient teamwork, and are seen as a route to achievement of more creative solutions. Employees deserve to be rewarded for
Labeling as such is known to lead to morale problems amongst lower performing employees and in extreme cases their early resignation. Despite the downfall of the measurement process, there is some degree of positive when pertaining to discipline and management. The system did force managers to have hard conversations with employees that they might otherwise have avoided. There’s no question in my mind forced ranking does bring disciplined rigor to the management process. As any manager knows, it’s often easier to avoid difficult, painful performance-related conversations than to confront them head on. Though some managers are outstanding in dealing with conflict, many (being after all only human) prefer to avoid or minimize it. Managing in a forced ranking system reminds me a bit of the famous old line from Joe Louis before his fight with Billy Conn, who boasted he’d rely on his speed in the ring. Responded Louis: “He can run, but he can’t hide.” In a forced ranking system, managers – and employees – have no place to hide. It literally forces performance issues to be addressed; for an organization that wants to tighten or formalize its management processes, I believe the system can have benefits (Lipman, 2012). Though this exercise allows for the lightening of dead weight, it seems quite harsh in a sense which
The company has an evaluation system that is not meeting the organizational objectives or developing the employees. Problems have arisen with the current evaluation reporting system because rating officials are too generous when evaluating employees. The organization’s employee evaluation format does not force the rating officials to be honest when evaluating their employee’s potential and performance. Rating officials are not trained on rating techniques and don’t provide quality feedback and establish employee goals that align with the organizational goals of the company. Poorly administered evaluations can undermine employee morale and be used by disgruntled employees against employers in litigation (Woodford & Doyle,
This essay will discuss and analyse Strategic Human Resource strategies and how these strategies impact on an organization 's performance and how literature supports or dispels these claims. This essay will focus specifically on High Performance Work Systems and how they impact the organisation and also the individual employee as “The proponents of Strategic human resource management make bold claims about its relevance to and its positive impact on organisational performance.” This essay will discuss those bold claims and determine how positive it is for the organisation’s performance.
Yes, He has already known what would happen if he went to a forced distribution or any other ranking method. By using graphic rating forms, he had several problems such as unclear standards, halo effect, central tendency, bias etc. and using the ranking method is a much better way of getting the desired outcome. Assessing jobs can help businesses define factors such as the proper salary and obligations for positions. The ranking method is simple and reasonable; however, it is subjective in that it relies on one person or a small group to evaluate the worth of a position. Mr. Winchester decided to put a hold bar on the number of secretaries getting anything above average. This new enforced ranking system was done because administrators were very merciful in ranking their staff. New required ranking method might produce a very unhealthy, cut-throat rivalry between staff. Nevertheless, if staff create vigorous opposition it can improve the efficiency and performances. The delivery of the budget for appraisal should be reasonable to keep the staff contented.
In today’s rapidly changing globalised business environment, human capital has become one of the keys to competitive advantage. Consequently, any good business strategy must fully utilise the inimitable assets of people through their knowledge, skills and abilities. This highlights the need for strategic human resource management (SHRM). The key assumption of SHRM is that organisational performance is affected by employees through a set of human resource (HR) practices (Pan et al 2006).
Pfeffer (1998) defined best practice theory is on the basis of an assumption that a high performance enterprise’s successful human resource practices also can be the example used in other enterprises and get the same results. As a result of the different understanding of people, there is also having other definitions. For example, Johnson (2000) also giving an definition that best practice is considered as a type of human resource method or system which have some qualities like additive additively, universal, and promotional effects on the organizational performance. Although some researchers have the different definitions about best practice, but all of these definitions are prove that best practice will influence the organizations’
ABSTRACT This document examines the differences between forced ranking and performance appraisal reviews, with the goal of recognizing the better of the two. The paper discusses possible method and design for research study, as well as whom the writer "thinks" would participate in the research study. It closes with ways the results might be analyzed and the expected outcomes.
“The universal approach, also commonly referred to as the best practice approach, to SHRM posits that some human resources practices are always better than others, and that all organizations should adopt these best practices” (Jamali and Afiouni, 2012).The main logic is that the entire organisation can see improvements in work performance but only after identifying the best practice and implementing it. The most eminent model in universal approach is by Pfeffer (1994), who contended that practices such as incentive pay,
The issue of how the human resource management affects organizations performance has always presented in academic world. Many scholars have done a lot of theoretical and field work, trying to prove that the contribution and impact of human resource management on organizational performance. Human resource management provides direction and enhances competitiveness in organization, and becoming a strategic partner in helping companies improves its performance (Ajit Kumar Kar, 2012). However, when it comes to particular issue, evidence suggesting a possible universal consensus are apparently the division of opinions is nowhere in sight.