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Forced Ranking: Boon or Bane?

CASE FLYER, HUMAN RESOURCE MANAGEMENT
ET Cases, 4 pages

Case Preview

Forced Ranking: Boon or Bane?

 

Expected Learning Outcomes

• Understanding the concept of performance evaluation and analyzing various Performance Management Systems (PMSs)
• Debating on the fallout of forced ranking on human resources in an organization

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Performance Appraisals: The Mechanics and the Metaphors

1. Each one of you has gained enrolment into your respective business schools after having cleared a demanding entrance test, and ranked based on  percentile system. Do you think such a system is an apt measure of performance?
2. Even in business schools (may be in your business school too), GPA system/CGPA system of grading has largely been adopted. Do you think this system is an apt measuring tool to assess the performance levels of the degree seeking participants?
3. What matters to you the most – the performance or the performance measurement?
4. ...................

Teaching Note Preview

Forced Ranking: Boon or Bane?

 

Synopsis

This case flyer facilitates a discussion on the concept of performance appraisal in general and also helps to critically evaluate the forced ranking system as a performance management system. It helps discuss the various types of performance management systems (such as 360o evaluation, annual appraisal, etc.) and helps identify the main objectives of a good performance management system. Discussing the case of Yahoo! which introduced forced ranking as a performance management system in 2013, the case flyer enables a debate on the pros and cons of ‘forced ranking’. While this was a successful practice at GE where the system was introduced in the late 1980s, why does this not find acceptance with most companies? Since the case flyer discusses performance appraisal in its various dimensions, it finds use in teaching the concept of ‘performance evaluation’ in Organizational Behavior course.

Expected Learning Outcomes

  • • Understanding the concept of performance evaluation and analyzing various Performance Management Systems (PMSs)
  • • Debating on the fallout of forced ranking on human resources in an organization

 

Positioning and Setting

The case flyer can be used in the following course

  • a) Human Resource Management – Performance Management & Appraisal
  • b) Concept of ‘performance evaluation’ in Organizational Behavior course

 

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$2.74
Rs 0
Product code: HRM-4-0015, HRM-4-0015A

Abstract

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.



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


1 Joshua Brustein, 'Yahoo's Latest HR Disaster: Ranking Workers on A Curve', The Economic Times, November 15th 2013



This Case Pack Includes:
- Abstract
- Case Flyer
- Teaching Note (**ONLY for Academicians)
$2.74
Rs 0

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