Forced Ranking Necessity
- Increased rivalry demands efficient functioning;
- Need for innovative approaches;
- Competition as the motivation to work harder;
- System forces managers and employees to communicate;
- Clear differentiation criteria;
- Proved positive outcomes.
The increased complexity of the modern society introduces the need for new solutions in the sphere of management. For this reason, forced ranking becomes popular. It combines several important aspects that help a company to survive in terms of the increased rivalry and align its efficient functioning. The combination of competition , along with the improved cooperation and clear differentiation criteria results in positive outcomes and helps to guarantee a company`s further rise. Under these conditions, the forced ranking evaluation system could help to restructure a certain organization and acquire a competitive advantage.
Forced Ranking Evaluation System in Verizon Wireless
- Overall performance level;
- Contribution to the company`s development;
- Perspectives for the further development;
- Current position in the company;
- Skills and competencies;
- Experience in the sphere.
Creation of a forced ranking evaluation system in a Verizon Wireless should be supported by the introduction of specific criteria needed to introduce main areas that will be taken into account. First of all, the performance level should become the main factor that determines results of ranking and demonstrates a worker`s contribution to the final result. Second, an employee`s perspectives should also be analyzed. In case he/she demonstrates the willingness to learn and master professional skills, special conditions for his/her evolution should be provided. Finally, a person`s current experience in the sphere remains one of the most important factors.
Advantages of Forced Ranking Evaluation System
- Increased level of rivalry within the company;
- Enhanced performance;
- Improved opportunities for career growth;
- Better final results;
- Identification of top performers;
- Rewarding practices.
The implementation of the forced ranking system is explained by numerous advantages of the given method. First, it stimulates competition by increasing rivalry. Numerous research works state that the high level of rivalry cultivates better functioning and results in improved outcomes (Grote, 2005). For this reason, the forced ranking system could help to enhance the performance of workers by suggesting them a new challenge. Additionally, it provides outstanding employees with numerous opportunities for career growth as it is important for the company`s future. Furthermore, identifying top performers managers will be able to introduce specific rewarding practices and increase their motivation to remain efficient and contribute to the company`s development.
Disadvantages of Forced Ranking System
- Limits employers;
- Encourages unhealthy competition;
- High turnover rates;
- Poor morale;
- High risk of burnout;
- Communication problems.
However, the forced ranking system obviously has certain disadvantages that should be taken into account before the approach is implemented. First, the usage of ranks could introduce limits for employees who are not in the top list. It could be a threat to their further development as the best opportunities are suggested to top-ranked workers only. Moreover, the forced ranking could encourage unhealthy competition because of numerous advantages that come from being in the top list (Sacolick, 2017). High turnover rates are another disadvantage as not everyone is able to work in a ranked environment. Poor employees` morale could also be explained by this fact. Workers might be disappointed with their position or envy their more successful colleagues (Sacolick, 2017). It could also trigger numerous communication problems and lack of understanding. Finally, working too hard to preserve their top status employees could suffer from burnout.
Implementation . Step 1
- Explain the concept of Forced Ranking;
- Provide rationale for its use;
- Outline evaluation criteria;
- Settle a date for its implementation;
- Describe privileges of being top ranked;
- State further perspectives.
The company`s reorganization in accordance with the forced ranking system could be a complex and painful process as employees face radical changes that will alter their functioning greatly. For this reason, the first stage of its implementation should be devoted to the explanation of the approach`s theoretical basis and the main aspects of its functioning (Johnston & Marshall, 2016). The concept of forced ranking should obviously be explained. Furthermore, it is crucial to provide the rationale for its implementation as workers should understand the motifs of this reorganization and be ready to participate. They should also be informed about the evaluation criteria to understand the new requirements and perspectives that await them.
Implementation. Step 2
- Creation of three main groups;
- Employees` distribution;
- Creation of conditions for top employees;
- Support of average performers;
- Low performers` stimulation.
The second step of the forced ranking`s implementation is focused on the creation of the environment that is needed for the company`s further functioning in terms of the given approach. For this reason, it is crucial to create three main groups (top, average, and low performers) and rank employees using the above-mentioned criteria. This ranking will help to understand the structure of the collective and provide support to every group. Top performers should be encouraged to preserve their leading positions by providing them even more opportunities for growth. Average performers should also be supported to increase their motivation. Finally, low performers should be able to understand advantages of belonging to top rank and do their best to improve their statuses.
Implementation. Step 3
- Monitoring of the company`s current functioning;
- Investigation of employees` efficiency;
- Data collection;
- Data processing;
- Results.
The last step of the forced ranking implementation should be devoted to the investigation of final results and the impact the practice might have on the functioning of the company, its performance, and its current position. For this reason, it is extremely important to collect data related to peculiarities of the company`s restructuring, its functioning in a new setting, and workers` efficiency. These are important factors of the implementation process as they demonstrate the effect that is achieved and could either prove or refute the forced ranking ability to assist the company in its recovery. Finally, data collected during the implementation process should be compared to the company`s results before its restructuring. It could help to make a final conclusion about the efficiency of the approach.
Technology as an Enabler to Forced Ranking
Introduction of a specific application :
- Ability to monitor status;
- Alterations in performance showings;
- Increased motivation;
- Transparency of rewards and distribution;
- Improved final outcomes.
As it has already been stated, the implementation of the forced ranking could be a complex process because of its sophisticated character and numerous factors that should be considered to rank employees. For this reason, the use of a specific application that monitors the most important showings could be taken as a good opportunity to increase the efficiency of the implementation process. First, it will help workers to monitor alterations of their status and remain informed about their performance. This will also help to preserve the high level of motivation as due to the application`s transparency employees will be able to note their successes and failures.
Statistical Analysis of Data
The use of technology to process data:
- Improved understanding of outcomes;
- Ability to trace the slightest alterations;
- Perfect forecasting;
- Comprehensive analysis of main issues;
- Decreased probability of mistake.
The usage of forced ranking in terms of a certain company introduces the necessity to process large amounts of data. For this reason, the probability of mistake remains high. The use of statistical tools to work with information could result in the enhanced results and make the company`s work even more efficient. Presenting the information in forms of graphs and tables, statistical tool will increase the level of its understanding and introduce the ability to trace the slightest alterations. Moreover, using data, the statistical tool will be able to make forecasts and analyze the most important issues related to forced ranking.
Technologies to Assist Workers` Efficiency
- The usage of innovative technologies to improve quality;
- Digital devices as an attempt to improve cooperation;
- Enhanced outcomes;
- Decreased resource-intensity.
Finally, the company could use technologies to improve its employees` functioning and overall efficiency which could be considered another step to guarantee efficient implementation of the forced ranking. The fact is that performance and success of the given approach are closely connected (Mone & London, 2009). In case workers demonstrate better results, forced ranking`s positive impact could be admitted. For this reason, the use of innovative technologies to improve quality and cooperation could also be considered an attempt to support the suggested reorganization.
Summary
- Forced Ranking is expected to enhance results;
- Ranking system stimulates competition;
- New opportunities for top workers;
- Increased level of stress;
- Deteriorated relations within the collective;
- Demands specific environment.
Altogether, the forced ranking system has numerous advantages that explain its popularity nowadays. The usage of the system could help to stimulate workers to work harder and demonstrate better results to be rewarded. Moreover, employees will also feel increased level of interest to their results from managers which means that they will not be able to ignore new conditions. At the same time, the forced ranking could be too difficult and stressing for workers who are not able to work under these conditions. It could also deteriorate relations within the collective as low performers will envy top ones. For this reason, it is crucial to prepare stuff for the implementation of a new method.
Summary. Verizon Wireless
3-steps implementation:
- Step 1. Explanation;
- Step 2. Implementation;
- Step 3. Monitoring.
3-ways to improve quality:
- Monitoring;
- Statistic analysis;
- Devices` usage.
In conclusion, Verizon Wireless could obviously benefit from the usage of forced ranking; however, only in case its implementation is preceded by a certain ground work. This need comes from the controversial character of the system and existence of certain disadvantages that should be eliminated. For this reason, the stuff should be explained the main peculiarities of the model that will be implemented and demonstrated its both advantages and disadvantages. Their informed consent will contribute to the decrease of time needed for adaptation and promote the model`s efficient functioning. Furthermore, the company could also use technology to foster the implementation and attain improved results. Only under these conditions positive alterations in its functioning could be admitted.
References
Grote, D. (2005). Forced ranking: Making performance management work. Cambridge, MA: Harvard Business Review Press.
Johnston, M., & Marshall, G. (2016). Sales force management: Leadership, innovation, technology. London, UK: Routledge
Mone, E., & London, M. (2009). Employee engagement through effective performance management: A practical guide for managers. London, UK: Routledge.
Sacolick, I. (2017). Driving digital: The leader’s guide to business transformation through technology. New York, NY: AMACOM.