Forced ranking boon or bane

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This case flyer enables a discussion on the topic of ‘Forced Ranking System’ as propounded by the legendary Jack Welch at GE during late 1980s. Considered as a mixed measure of Performance Management Systems (PMS), the case flyer suggests that a great deal of precaution is essential before implementing any such system. The case flyer revolves around the introduction of forced ranking system as a performance management system at Yahoo! by Marissa Mayer, its new CEO. In coherence with the accompanying article1, the case flyer discusses the repercussions of forced ranking system in an organization and debates if forced ranking system even truly evaluates human resources as it is believed that employee performance does not follow a bell curve. The case flyer finds application in teaching the concept of ‘performance evaluation’ in Organizational Behavior Course. URL: http://www.etcases.com/forced-ranking-boon-or-bane.html

Recruiting & HR

FORCED RANKING: BOON OR BANE?
This case flyer enables a discussion on the topic of ‘Forced Ranking System’ as propounded by
the legendary JackWelch at GE during late 1980s. Considered as a mixed measure of Performance
Management Systems (PMS), the case flyer suggests that a great deal of precaution is essential
before implementing any such system.The case flyer revolves around the introduction of forced
ranking system as a performance management system at Yahoo! by Marissa Mayer, its new
CEO. In coherence with the accompanying article1
, the case flyer discusses the repercussions of
forced ranking system in an organization and debates if forced ranking system even truly evaluates
human resources as it is believed that employee performance does not follow a bell curve. The
case flyer finds application in teaching the concept of ‘performance evaluation’ in Organizational
Behavior Course.
Pedagogical Objectives
• To understand the concept of performance evaluation and to analyze various Performance
Management Systems (PMSs)
• To debate on the fallout of forced ranking on human resources in an organization
ABSTRACT
© www.etcases.com
1
Joshua Brustein, “Yahoo’s Latest HR Disaster: Ranking Workers on A Curve”, The EconomicTimes, November 15th
2013

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take a stance for or against forced ranking. Support your response with examples of two pros and two cons that you must consider in your stance. Specify two legal considerations to which an organization may be susceptible if it were to implement forced ranking performance evaluation systems unfairly and inaccurately. Suggest the key corrective actions that an organization could take in order to rectify issues that arise from said unfair and inaccurate implementation. chapter notes below: Welcome to Performance Management. In this lesson, we will be discussing forced rankings: Pros, cons, and practices. Please go to the next slide. 2 Objectives Upon completion of this lesson, you will be able to: Evaluate the concept of a forced ranking performance evaluation system. Please go to the next slide. 3 Supporting Topics Specifically, we will discuss the following topics: Pros and cons of a forced rating system; Legal considerations of a forced rating system; and, Implementing a forced rating system Please go to the next slide. 4 Definitions It appears forced ranking usage is infrequent among organizations, according to a 2005 survey conducted by the Society for Human Resource Management. Of the 330 respondents, only 43 indicated their organization used a force ranking system, and only two indicated that their organization’s forced ranking approach resulted in terminations. So, what are we talking about when we say forced ranking systems? A forced ranking system, also known as a relative rating, specifies a percentage of employees being evaluated must receive the highest and lowest ratings. Jack Welch, the former CEO to General Electric, is well known for his forced ranking system known as the Vitality Model. His model specified that all managers are to rank their employees based on a twenty-seventy-ten percentage scale, whereas the bottom ten percent are classified as nonperformers and are typically terminated from their position. The absolute ranking system is based on the same principle, but has a different flavor. Absolute systems involve making judgments about people in relation to descriptions of job-related behaviors or traits, or both. Under these systems, all individual are independently assessed against the same standards, instead of against one another. Examples of absolute systems include behaviorally anchored rating scales and weighted checklists. Please go to the next slide. 5 Fairness and Accuracy Are forced rating systems fair? This is a question of value. Let’s look at the pros and cons of forced ranking systems. After our discussion, you can decide if they appear fair to you. Advocates for forced ranking systems argue that the process combats the problem of artificially inflated ratings. Before Ford Motor Company piloted a forced ranking system, 98 percent of all managers in the company were evaluated at the top of.

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The selected firm is Walmart Question 1: Imagine a performance evaluation system that promotes roles, behaviors, and work outcomes appropriate to achieve organizational strategic objectives throughout the firm. Take into consideration the Two Sides of Performance Management as illustrated in your textbook on page 164, Figure 6.1. What would such a system look like? Would it be similar to the one used in your organization? How would individual and/or team performance assessment be conducted? What tools would you recommend? Would you use MBO, 360 Degrees or another system? Why? Present your views in 200 words or more in your discussion post. Use at least two scholarly source to support your ideas. Figure 6.1 The Two Sides of Performance Management (Hunt 163) Hunt, Steven T. Commonsense Talent Management. Pfeiffer, 2014-02-10. VitalBook file. Question 2 Consider the proposition that HRM adds value to the firm. Also, examine the topic of “Marginal Utility Analysis” and how it is used to make a case about the value of HRM. How do HRM practices and systems add value to a firm? What is the basis for an argument for or against this proposition? Present your views in 200 words or more in your discussion post. chapter SIX Doing Things the Right Way: Using Performance Management to Increase Business Execution Ensuring that employees are doing the right things the right way is central to driving business execution. This is the primary purpose of performance management, although many performance management processes fail to fulfill this purpose. Performance management refers to processes used to communicate job expectations to employees, evaluate employees against those expectations, and use these evaluations to guide talent management decisions related to compensation, staffing, and development. Performance management encompasses a variety of activities, including talent reviews, calibration sessions, pay-for-performance plans, performance feedback, and other methods that measure employees based on the degree to which their actions and accomplishments align with the company's expectations and objectives. This chapter discusses how to use performance management to increase workforce productivity. There is a reason this chapter is the longest one in this book: designing and deploying effective performance management processes is not easy. It requires addressing highly sensitive topics related to measuring the contributions of individual employees and making decisions about their pay, promotions, and employment. Creating a successful performance management program requires attending to several big picture strategic issues and myriad specific details to ensure that the processes fit the culture and needs of your company. There is no such thing as a neutral performance management process. People will either like it or dislike it. Many performance management processes are criticized as lacking business impact, creating unnecessary administrativ ...

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Running head: TARGETED WORK CLASS 1 TARGETED WORK CLASS 3 Targeted Work Class After the performance of a needs assessment, the following process is to examine the results of the assessment. This assessment helps to understand the processes that go into the performance of certain work roles and the key employee capabilities that are needed to fulfil those role requirements (Bratton & Gold, 2017; Hasibuan, Purba, & Siahaan, 2016). The following is an evaluation of the results of a needs assessment to determine the key work processes required, the employees who will be fulfilling these roles, and the key needs for those employees to successfully deliver on their roles as required. Results of the Assessment of the Work Processes and Key Employees The assessment of the employees in the project showed that all workers are integral to the success of the organization. All the activities they engage in on a day-to-day basis somehow directly or indirectly contribute to the achievement of the organizational goals. The actions of the employees were found to be a determinant of the present and future growth of the business. However, the nature of the contribution of the employees was found to be dependent on the level at which they are working. This analysis found that the organization has three main levels of employees; the executives, the middle level managers, and the lower level managers. The role of the executives was mainly making the long-term goals of the organization. The executives at this company do not partake in the day-to-day running of the activities of the organization. The middle-level managers were responsible for the short-term decision making roles. They make decisions that affect the roles of the lower-level managers. Lastly, the lowest level managers were responsible for performing the actual processes that are needed for the achievement of the organizational roles. For example, they directly sell products to the customers daily so that the company can get its sales revenue. These three levels of employees have to work together for the overall organizational objective to be achieved. How the Organization will Change while Meeting its Strategic Objectives in the Future Given the current state of the organization, the management will need to make a few changes to achieve its objectives in the future. One of the changes that is needed is the development of job descriptions. This analysis revealed that most of the employees do not have an official understanding of what is expected of them by the management. They have an idea of what they do on a daily basis. However, due to the lack of an official job description, some of the employees’ roles overlap. A job description helps the employees to be more productive because they have a better understanding of what is expected from them. They will also understand the skills that they need to achieve the best results for the organization. Another change that is needed for the organizati ...

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Forced ranking boon or bane

1. FORCED RANKING: BOON OR BANE? This case flyer enables a discussion on the topic of ‘Forced Ranking System’ as propounded by the legendary JackWelch at GE during late 1980s. Considered as a mixed measure of Performance Management Systems (PMS), the case flyer suggests that a great deal of precaution is essential before implementing any such system.The case flyer revolves around the introduction of forced ranking system as a performance management system at Yahoo! by Marissa Mayer, its new CEO. In coherence with the accompanying article1 , the case flyer discusses the repercussions of forced ranking system in an organization and debates if forced ranking system even truly evaluates human resources as it is believed that employee performance does not follow a bell curve. The case flyer finds application in teaching the concept of ‘performance evaluation’ in Organizational Behavior Course. Pedagogical Objectives • To understand the concept of performance evaluation and to analyze various Performance Management Systems (PMSs) • To debate on the fallout of forced ranking on human resources in an organization ABSTRACT © www.etcases.com 1 Joshua Brustein, “Yahoo’s Latest HR Disaster: Ranking Workers on A Curve”, The EconomicTimes, November 15th 2013

Forced ranking boon or bane

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Forced ranking boon or bane