following are the detailed advantages and disadvantages of forced ranking method

1. ADVANTAGES
• The forced distribution is a simple and consistent methodology. All
managers understand the principles.
• It leads to increased productivity and identify key players and encourages
competition
• The employees are clearly divided into different groups and HR can
target training courses, development programs for talents and manage the
salary review process. The managers are required to act on low
performers.
• It provides a sound and defensible rational for all important personnel
actions including pay raises, promotions, bonuses, developmental
opportunities, layoffs and terminations.

2. Disadvantages
• Quotas can push the excellent employees down just because the manager
needs to meet the distribution curve.
• The calibration does not depend on results achieved; it strongly depends on
the visibility of the employee among others.
• Forced ranking can limit creativity, risk taking; it can weaken ethics and
negatively impact the corporate culture.
• The teamwork can be negatively impacted by the forces ranking; employees
do not want to share ideas.
• It encourages unhealthy competition
• It limits employees and make them demoralised.