Question

What is the intended benefit of the forced ranking approach to performance appraisal? It highlights any biases or perceptual errors in the appraisal process. It shields the company from legal action by subjecting all employees to the same treatment. It encourages employees to participate in the appraisal process and to think critically about their own performance. It encourages managers to reward top performers and discipline poor performers.

Answer 1

The correct option is D. It encourages managers to reward top performers and discipline poor performers.

Explanation: The Forced Ranking Approach to performance is a management tool which employers use in measuring the level of performance of their employees, this is done by comparing the employees performances with one another, instead of comparing their performance against a fixed standard.

It is also known as vitality curve and is highly controversial.

One demerit of this method of performance appraisal is that it makes comparisons among the best and worst workers using subjective criteria.

However, one advantage of this method of appraisal is that it helps to identify the top performing employees and least performing employees, and either reward or punish them as the case may be.