Forced distribution method of performance appraisal

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I. Contents of getting forced distribution method of

performance appraisal
==================
There are several different types of employee performance appraisals. However, one of the most
favored by large organizations with thousands of employees is "forced distribution." Many
employers think it is the best way to evaluate employee performance. Others hold strong views
in opposition.
Background
Jack Welch, former CEO of General Electric and author of the business management treatise
"Winning," almost single-handedly made forced distribution appraisals famous. While at General
Electric, Welch's take on business was that employers should reward the top performers,
attempt to develop the middle category of employees and dismiss employees whose performance
is ranked in the lowest category. This system is sometimes referred to as "rank and yank,"
meaning, you rank employees then yank out the worst ones.
Features
According to a forced distribution performance appraisal, an employee is judged on his own
accomplishments. This is rewarding for an employee who values individual achievements over
teamwork and team-based goals.The method by which the employee is ranked may include
"management by objectives" or MBOs, which are goals and objectives the employee and her
manager identify at the beginning of the evaluation year. At the conclusion of the evaluation
year, the objectives completed are ticked off, and the employee is rewarded for the amount and
quality of work performed to reach those goals.

Effects
Experts, including Welch, estimate 20 percent of the workforce falls into the A range.
A-range employees are often rewarded generously and groomed for leadership positions with
the company.
The majority of employees are said to belong in the B category, as employees who simply meet
expectations but may have potential to move up to become A-range employees. For employees
ranked B, there are performance improvement plans put into place or a different set of MBOs
implemented or even a mentor assigned to an employee who shows promise for improvement.
The expectation is for the average performers to be given an opportunity to improve or
eventually move into the top ranking. The employee is often coached by her manager, or the
company might invest in professional development activities to assist in her improvement.
The lowest ranking in a forced distribution performance appraisal is C. C-range employees are
not meeting performance standards according to their managers. Either the MBOs established
early on are woefully incomplete, or the employee simply isn't a good fit for the
organization.
Considerations
In his article, "The Case For 20-70-10," Welch admits, "More typically, when a person has been
in the bottom 10% for a sustained period of time, the manager starts a conversation about
moving on." This is the yank part of the equation in a forced distribution employee performance
appraisal.
The forced distribution appraisal has firm guidelines and is usually a time-sensitive occurrence
since bonuses are likely to be given out at the end of the year. For these reasons--regimented,
timely and overly formal--the forced distribution type of appraisal method has been criticized.
And, since forced distribution appraisals do not promote an exchange or discussion between the
employee and her manager, the forced distribution critics see this type of appraisal, which
advocates unilateral decisions, as steeped in favoritism.
.
Benefits
The overwhelming feeling about performance evaluations is that employees and managers alike
dread them. Employees believe their efforts won't be recognized and evaluated fairly, and
managers may sometimes be reluctant to provide candid feedback to help the employee perform
her job successfully.
In this case, there are benefits to a forced distribution appraisal. Large organizations with
thousands of employees and managers are aware of the forced ranking that's necessary
during appraisal time. With this in mind, managers tend to use careful detail in evaluating
employees--especially in the A and B range.
==================

III. Performance appraisal methods

1. Essay Method
In this method the rater writes down the employee
description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.

2. Behaviorally Anchored Rating Scales

statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages helps overcome rating
errors. Disadvantages Suffers from distortions
inherent in most rating techniques.

3. Rating Scale

Rating scales consists of several numerical scales

representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases

4. Checklist method
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages economy, ease of administration, limited
training required, standardization. Disadvantages Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings

5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an
employee stands in his group. It does not test anything
about how much better or how much worse an employee
is when compared to another employee.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. Critical Incidents Method

The approach is focused on certain critical behaviors of

employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.

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