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

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  • Stewart, Susan M
  • Gruys, Melissa L
  • Storm, Maria

Abstract

Some 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.

Suggested Citation

  • Stewart, Susan M & Gruys, Melissa L & Storm, Maria, 2010. "Forced distribution performance evaluation systems: Advantages, disadvantages and keys to implementation," Journal of Management & Organization, Cambridge University Press, vol. 16(1), pages 168-179, March.
  • Handle: RePEc:cup:jomorg:v:16:y:2010:i:01:p:168-179_00
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    Cited by:

    1. Anthony Vashevko, 2019. "Does the Middle Conform or Compete? Quality Thresholds Predict the Locus of Innovation," Organization Science, INFORMS, vol. 30(1), pages 88-108, February.
    2. Fujun Hou, 2022. "Conditions for none to be whipped by `Rank and Yank' under the majority rule," Papers 2208.05093, arXiv.org.
    3. Loberg, Linda & NĂ¼esch, Stephan & Foege, Johann Nils, 2021. "Forced distribution rating systems and team collaboration," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 18-35.
    4. Eddy Cardinaels & Christoph Feichter, 2021. "Forced Rating Systems from Employee and Supervisor Perspectives," Journal of Accounting Research, Wiley Blackwell, vol. 59(5), pages 1573-1607, December.

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