Final answer:
An employee may be inclined to give low peer ratings in a forced ranking system due to the limited availability of merit pay, which could increase their own chances of receiving a higher reward.
Step-by-step explanation:
An employee might be tempted to give colleagues a low rating in a forced ranking system primarily because a limited amount of merit pay is available. When merit increases are finite, ranking a peer lower can potentially benefit the appraiser by increasing their own chances of receiving a higher portion of the available compensation. However, such practices can lead to a toxic work environment and do not generally support the overall goal of improving organizational performance or employee development as intended by performance appraisals.
Performance appraisals, including 360-degree feedback, are complex processes that are supposed to motivate employees and provide multiple perspectives on their job performance. Ideally, these appraisals are used to foster professional development, identify training opportunities, and make informed decisions on compensation and job positions.