The chart above are the results from a recent i4cp study on performance rankings, published in Performance Management Playbook: Managing Critical Performance Challenges, showing a sharp decline in both forced rating and forced ranking since 2009.
- Two-thirds of companies that did utilize these practices abandoning them - from 49% in 2009 to 14% in 2011.
Companies unwittingly give a huge boost to the competition.
..when Microsoft jettisons their presumed lower-performing employees, they are providing the competition with fresh talent
The bottom 10% isn't always the bottom 10%.
An employee who is in the bottom 10% in a high-performing department might rank much higher when compared to employees in a different department that has lower overall performance. Why should that employee be let go when he or she outperforms those in other fucntions? This isn't comparing apples to apples; it's like comparing apples to bacon.
Forced ranking can be an engagement and innovation killer.
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