Forced Ranking: Good, Bad, or Both?

Page 6 of 6 CONCLUSION Consider the pros and cons presented by Sue Todd and Raj Ramachandran when determining whether forced ranking is good, bad, or possibly both; for your organization.  Whether or not a company chooses to implement a forced ranking system should be based on a thorough understanding of their individual needs and cultural factors that may impact the success of such a program.  Many issues need to be considered before doing so, and the overall business strategy should be reviewed in order to determine whether or not forced ranking is the appropriate action.  Careful implementation consideration is also vital, not only to assure effectiveness, but also to assess program strengths and weaknesses. Organizations must spend a considerable amount of time up front addressing the following questions during the formative stages of the implementation process: Time Frame – should forced ranking systems be implemented year after year or only during key company transition events (i.e. mergers, acquisitions, divestitures)? Organizational Level – how far in the organization should the ranking process extend? Should it only include top leadership positions or be used for all people in management? Confidentiality - to what extent should a company publicize the fact that it is adopting a forced-ranking system? Should rankings be shared internally? Distribution Curve - should your organization stick with a normal bell-shaped distribution curve of the top 20%, middle 70% and bottom 10% or would you enforce a system where employees would be given a grade regardless of percentage quotas? Outcomes & Consequences – how does the organization determine the evaluation standards of A, B and C players? What happens once the process is complete? What does the organization do with those identified as C players? How are the A and B players rewarded and developed? It is also important to consider that the primary strength of this process is the standardization of the evaluation criteria applied to all individuals (at the requisite level) across all organizational units. Therefore, any implementation plan should incorporate such a deliverable as part of the process. Forced ranking systems are not a panacea and should be used in conjunction with other performance management and career development tools such as performance appraisals, training, mentoring/coaching, job postings, succession planning and tuition assistance. To demonstrate that forced ranking systems truly are a positive force to encourage performance - rather than simply punish low performance - these tools must be implemented together in a supportive structure that recognizes and rewards those that strive to perform. No one has commented on this article. You are encouraged to offer your thoughts and comments in this dialog. Name: E-mail: (required) Company: Comment(s): << Start < Prev 1 2 3 4 5 6 Next > End >>