Question

A particular organization uses a forced ranking system to appraise employees. as a peer appraiser, why might an employee be tempted to give colleagues a low rating?

a. conflict and ill will among peers is reduced.
b. a limited amount of merit pay is available.
c. you can all benefit if you rate each other low.
d. rating errors can be balanced out.

Answer 1

Employees might give colleagues a low rating to secure a greater share of limited merit pay in a forced ranking system. This can undermine collaboration and create competition, which can negatively affect workplace dynamics.

Step-by-step explanation:

In a forced ranking system, an employee might be tempted to give colleagues a low rating due to the presence of a limited amount of merit pay available. When merit pay is scarce, giving a lower performance rating to peers can be seen as a way to ensure a better share of the limited rewards for oneself. This form of appraisal can create an environment of competition rather than collaboration among employees and may lead to workplace issues such as decreased morale and teamwork.

Despite the intention behind 360-degree feedback appraisals to enhance learning and provide comprehensive views of an employee’s performance, they can be subject to biases and misuse. When improperly used within an organizational culture that does not support the system's values, the effectiveness of such appraisals can be significantly compromised.