Forced Ranking: Life Is A Bell Curve, She Said, Get Used To It
Managers hate firing people. The solution: forced ranking. 10% of employees are designated as top performers, 80% as unspectacular and the remaining 10% as bottom-feeders.
The stars get bonuses and training. Poor performers get nothing. And most people who get nothing leave the firm on their own.
Opponents of forced ranking claim that it makes colleagues over-competitive. They won't help people they're competing with. Another disadvantage is the high cost of turnover.
Even proponents don't believe it should be done every year. The first time you're cutting obvious fat but by the third time, you're getting down to the bone.
Forced ranking was popularized by Jack Welch at GE. Now, 20% of large companies use it. Often, it is only applied to senior managers and executives.
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Thanks to John Holmes for suggesting that we open our links in new windows. And thanks to the Irish Eagle for teaching me how.