Pros and Cons of Forced Distribution

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1.) What are the pros and cons of forced-distribution and forced-ranking systems?

Pros:
a.)Forced-distribution systems are a way to help match company and employee performance with compensation b.)A forced-distribution system also helps managers tailor development activities to employees based on their performance. c.)The use of a forced-distribution system is a way for companies to increase performance, motivate employees, and open the door for new talent to join the company in place of poor performers.

Cons:
a.)Their use of the systems has sometimes generated lawsuits and negative publicity and triggered poor employee morale. b.)Poor performers receive no salary increase, and average performers receive smaller increases than are given to top performers. c.)Forced-distribution asks managers to differentiate between good, average and poor performers, a distinction many managers find difficult to make. d.)The systems have been difficult to implement, and companies have gotten into trouble. e.)The system took too much time and energy, and managers were focused on the appraisal instead of improving employee performance. f.)The system was also used to deny employee raises.

g.)The forced-ranking system targeted older employees and not poor performers. 2.) Suppose Ford, Goodyear or Dow Chemical contracted with you to modify its performance management system to avoid some of the problems it has experienced. What would you suggest the company to do?

Ford, Goodyear, or Dow Chemical should focus more on improving the performance of their employees rather than taking too much time and energy in performance appraisal. The companies should get to know their employees better to attain good judgment for them, and the judgment must be based on the criteria being set by the company to avoid bias in judgment. It must be clear and easy to implement to avoid conflict. And the rating of the employees could be more accurate.

Another problem is that they are...
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