Introduction
Employers implement multiple management tools to rate their workers’ performance and skills. By using them, they expect to improve their productivity and ensure better outcomes for their business. One of these tools is forced ranking, which gained notoriety as time progressed. The following essay will review the advantages and disadvantages of this method, as well as provide an opinion on it. A relevant source will then support the said perspective.
Definition of Forced Ranking
Before depicting the pros and cons of this method, it is crucial to know its definition. Forced ranking is a means of evaluating employee performance that defines existing percentages of employees into certain categories based on their work compared to their colleagues. This tool aims to identify the best workers who should receive credit and rewards for their achievements. Meanwhile, the second objective is to locate the underperformers, who should then be placed on performance improvement plans or fired.
Benefits of Forced Ranking
There are two crucial advantages to the method and two disadvantages. As mentioned earlier, the first pro helps promptly identify the best workers. That way, managers can focus their energy on the people with the greatest potential and motivate them to stay. The second advantage is that it increases productivity among employees. Recognition and rewards for great results can motivate workers to not only stay but to continue putting in the same level of effort.
Disadvantages of Forced Ranking
However, it is not suitable for teamwork and may create a rather competitive environment. Employees will be less likely to work together and more likely to stab each other in the back (Thompson, 2019). Another disadvantage of this method is that it causes a significant amount of stress. This could lead to burnout and absenteeism among some of the employees. They may struggle with constant fear, witnessing their coworkers not receiving raises, as it implies that they can be next in line. Such outcomes, understandably, do not benefit businesses at all.
The Limitations of Forced Ranking in Modern Work Environments
Given the aforementioned information and considering the disadvantages, it is safe to say that forced ranking is dated and counterproductive. Undeniably, some businesses can benefit from it, especially if they are not severely damaged by high turnover. However, this is not the case for the rest of the organizations, including the ones that focus on creativity and innovation. In the latter companies, workers do not feel motivated to improve after being labeled as underperforming, even though they have achieved all objectives (O’Connor, 2021).
As the amount of work increases, teamwork becomes crucial, which is impossible in such an environment. When two employees are compared in terms of performance, they are more likely to be competitive than helpful to each other (Gupta, 2018). A better idea would be to help them ameliorate their skills and combine one’s objectives with organizational goals. Unfortunately, a one-time yearly discussion fails to achieve that, forcing employers to fire underperformers at the expense of the occurrence in the whole organization.
Conclusion
In conclusion, forced ranking is a method that helps evaluate employee performance. While it is likely to increase productivity and help identify the best workers, there are also some flaws. Forced ranking creates a competitive environment, which is damaging to teamwork. Another issue with this method is that employees are constantly stressed and are at risk of burnout.
Given the aforementioned information and the negative outcomes outweighing the advantages, it is best to say that forced ranking is outdated and counterproductive. A better way to solve the matter is to assist employees with improving their skills and combining their personal goals with organizational ones. That way, the organization will be more successful and achieve its objectives easily.
References
Gupta, G. (2018). Are you still using force rankings? Please stop. Forbes. Web.
O’Connor, S. (2021). Why ranking employees by performance backfires. Financial Times. Web.
Thompson, J. (2019). Advantages & disadvantages of employee ranking tools. Chron. Web.