Final answer:
The performance evaluation system that requires employee rankings to conform to a bell-shaped curve is known as forced distribution. This method spreads employee evaluations across a predefined distribution to prevent rating inflation and ensures appraisals reflect varied performance levels.
Step-by-step explanation:
The method described in the question where the general supervisor of a large downtown hotel requires that the final performance evaluation rankings of all employees conform statistically to a bell-shaped curve is known as forced distribution.
This approach typically mandates that the rankings are spread out in such a way that only a certain percentage of employees can be seen as exceeding expectations, a larger percentage are seen as meeting expectations, and another percentage fall below expectations. Its aim is to eliminate rating inflation and leniency, ensuring that performance evaluations are spread across a pre-defined distribution curve.
Forced distribution is often compared to educational grading systems where grades are assigned based on performance relative to a bell curve. It is similar to the normal distribution which is applicable to various disciplines, including business practices. For performance appraisals specifically, the use of forced distribution can be part of a 360-degree performance appraisal system, where multiple sources of feedback are used to give a comprehensive view of an employee's performance.
While forced distribution can provide a clear-cut framework for performance evaluation, it is not without controversy. Critics argue that it can be demoralizing, create unhealthy competition, and may not accurately reflect all employees' contributions. It is critical to note that the effectiveness of this method may vary depending on the organization's culture and the implementation of the performance appraisal process.
In summary, the performance evaluation system described in the question where employees' rankings are adjusted to fit a bell-shaped curve is referred to as forced distribution.