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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Suggested Orchestration
Before the Case Flyer Discussion in the Classroom
a) Before the classroom discussion, students were asked to read the book chapters – “Getting Started” and “Getting the Mechanics Right” from the book, Forced Ranking: Making Performance Management Work by Dick Grote.
b) The students were also asked to read the concept of ‘vitality curve’ from Jack Welch’s book, Jack: Straight from the Gut.
c) The students were asked to discuss with their parents or any of their seniors about the way their performance was assessed at their respective organizations.
d) Most importantly, the students were encouraged to analyze all the questions given in the case flyer (either individually or in learning teams or appropriate discussion forums) for them to participate effectively and enrich the learning outcomes.
During the Case Flyer Discussion in the Classroom
The discussion on the case flyer was conducted under two broad related topics: ...........
The flow of questions to be discussed in the classroom has been elaborated in Annexure (TN)-I: The Board Plan
I. Performance Appraisals: The Mechanics and the Metaphors
• To begin the classroom discussion on performance appraisal, the participants discussed the performance evaluation method that was used to assess their performance to get an admission into the B-school.
• The participants also debated on the GPA/CGPA (grading system) adopted in B-schools.
• Having warmed up to the concept of performance appraisal, the participants were asked to share the performance evaluation methods of their seniors (an exercise that was suggested to be undertaken by the participants before the classroom discussion, as most of the participants were unlikely to have experienced the same themselves).
• This led to a discussion on the various types of performance appraisal methods used by various companies which in-turn helped in identifying the reasons behind different companies using different performance appraisal methods and the main objectives of a performance appraisal method.
• .............
Annexure
Annexure (TN)-I: Board Plan
