Forced Ranking
Employees are ranked according to their performance in a system known as forced ranking, with a certain percentage designated as “high performers,” “average performers,” or “low performers.” In addition to providing a means of addressing performance issues with employees who aren’t performing to their potential, this system is intended to identify and reward the best performers. In companies with a culture of intense competition where employees constantly strive for excellence, forced ranking is frequently employed.
While constrained positioning can give an unmistakable image of an association’s top entertainers, it can likewise establish an exceptionally cutthroat climate where employees might feel like they are set in opposition to each other. This can have a negative impact on teamwork and collaboration as well as generate hostility and resentment among coworkers. Employees who are consistently ranked as low performers, even if they are still meeting the organization’s expectations, may find forced ranking to be demoralizing.
Despite these drawbacks, some businesses continue to evaluate employee performance through forced ranking. However, in recent years, many organizations have abandoned this method in Favor of more collaborative and inclusive performance evaluation systems that place an emphasis on individual goals and professional development.