Forced ranking performance review systems rank all employees within a

QUESTION

Forced ranking performance review systems rank all employees within a company business unit against one another.

Their performance grades are distributed on a bell curve, which determines potential disciplinary actions or rewards. What is NOT a potential drawback of these evaluation systems?
A) They lower employee morale.
B) They invite legal challenges.
C) They decrease productivity.
D) They produce objective evaluation data.
E) They decrease employee loyalty.

ANSWER

Answer: D
Explanation: D) Pitting employees against one another in a ranking system can result in bad feelings among staff. However, the bell curve and evaluation grades can offer clear pictures of comparative performance.