Forced distribution performance evaluation systems: Advantages, disadvantages and keys to implementation

2010 ◽  
Vol 16 (1) ◽  
pp. 168-179 ◽  
Author(s):  
Susan M Stewart ◽  
Melissa L Gruys ◽  
Maria Storm

AbstractSome organizations, such as General Electric, currently use or have used forced distribution performance evaluation systems in order to rate employees' performance. This paper addresses the advantages and disadvantages as well as the legal implications of using such a system. It also discusses how an organization might assess whether a forced distribution system would be a good choice and key considerations when implementing such a system. The main concern is whether the organizational culture is compatible with a forced distribution system. When a company implements such a system, some important issues to consider include providing adequate training and ongoing support to managers who will be carrying out the system and also conducting adverse impact analyses to reduce legal risk.

2010 ◽  
Vol 16 (1) ◽  
pp. 168-179 ◽  
Author(s):  
Susan M Stewart ◽  
Melissa L Gruys ◽  
Maria Storm

AbstractSome organizations, such as General Electric, currently use or have used forced distribution performance evaluation systems in order to rate employees' performance. This paper addresses the advantages and disadvantages as well as the legal implications of using such a system. It also discusses how an organization might assess whether a forced distribution system would be a good choice and key considerations when implementing such a system. The main concern is whether the organizational culture is compatible with a forced distribution system. When a company implements such a system, some important issues to consider include providing adequate training and ongoing support to managers who will be carrying out the system and also conducting adverse impact analyses to reduce legal risk.


Author(s):  
Jong-yu Paula Hao

In this study, I examine whether supervisors respond to their own preferences in subjective performance evaluation under a forced distribution system (FDS). Using a proprietary, archival dataset in a car dealership, I find that subjective evaluations are higher when longer supervisor-subordinate relationships exist, whereas subjective evaluations are lower when larger supervisor-subordinate age differences exist. The empirical evidence also indicates that subjective evaluations predict promotions and future performance of the employees, implying that the use of subjectivity allows supervisors to incorporate forward-looking information of employee performance despite its potential biases. This study contributes to the literature by focusing on the performance appraisal based on the FDS and documenting the impact of supervisor incentives on subjective performance evaluation.


Author(s):  
Stephanie Payne ◽  
Margaret Horner ◽  
Wendy Boswell ◽  
Amber Wolf ◽  
Stine-Cheyne Kelleen

2013 ◽  
Vol 33 (5) ◽  
pp. 369-376 ◽  
Author(s):  
Adele Caldarelli ◽  
Clelia Fiondella ◽  
Marco Maffei ◽  
Rosanna Spanò ◽  
Massimo Aria

2015 ◽  
Vol 23 (1) ◽  
pp. 32-34 ◽  
Author(s):  
S.S. Sreejith

Purpose – Explains why performance evaluation designed for manufacturers is inappropriate for information technology organizations. Design/methodology/approach – Underlines the distinctiveness of the information technology workforce and provides the basis for an effective performance- evaluation system designed for these workers. Findings – Highlights the roles of consensus and transparency in setting and modifying evaluation criteria. Practical implications – Urges the need for a fair and open rewards and recognition system to run in parallel with reformed performance evaluation. Social implications – Provides a way of updating performance evaluation systems to take account of the move from manufacturing to information technology-based jobs in many developed and developing societies. Originality/value – Reveals how best to recognize, reward and assess the performance of information technology workers.


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