Final answer:
A performance appraisal that requires supervisors to place their employees into classifications like "top one-fifth" is known as the forced distribution method. It is designed to reduce bias in evaluations but can be controversial in practice. Different appraisal systems, including the 360-degree feedback method, are actively researched to determine their effectiveness.
Step-by-step explanation:
A performance appraisal that requires supervisors to place their employees into particular classifications, such as "top one-fifth" or "second one-fifth," is referred to as a forced distribution method. This approach is designed to mitigate leniency and central tendency biases by compelling managers to distribute their employees into predetermined performance categories. The forced distribution method is a controversial appraisal technique due to its potential for creating competition among employees and being perceived as unfair by those who are forcibly ranked lower even if their performance is satisfactory.
The effectiveness and use of performance appraisal systems, including the forced distribution method and the 360-degree feedback appraisal system (which derives from ratings by supervisors, peers, subordinates, and the employee herself), continues to be an active area of research in industrial psychology. Understanding the organization's culture and the fit of the appraisal method within that culture is crucial for the successful implementation and acceptance of the performance appraisal system.