Forced Ranking: Good, Bad, or Both?

Page 3 of 6 WHY IMPLEMENT FORCED RANKING? When implementing a forced ranking system, Ramachandran states that success is based on which type of system is introduced into the organization. There are four different systems to choose from: 1.    Strict forced distribution model:  This is the distribution of the top 20%, vital 70%, and bottom 10%.   2.    Loose forced distribution model: Employees are slotted in either 3 or 5 buckets, but are not assigned percentages. 3.    Quartile model: Lists four defined cells, and individuals are ranked into one of the cells. 4.    Totem Pole Approach:  Rankings start at 1 and work downward. Once one of the four schemas is implemented within the organization, the next step is to execute the process.  The quartile model and totem pole approach are the best systems for smaller organizations, while the strict and loose forced distribution models are better for large organizations.    In relation to the webinar attendees, the three schemas that attendee organizations have implemented are a strict forced distribution model, a loose forced distribution model, and a quartile model.  Only 8% of respondents use a totem pole approach, and about 30% use another system all together. Of the organizations polled, 60% agreed that rewarding top performers is the best reason to include forced ranking as a performance management mechanism.  << Start < Prev 1 2 3 4 5 6 Next > End >>