...Mikell MNGT 5590 Case 5.1: Comparing Co-Workers Against Each Other: Does This Motivate Employees? 1. What’s your opinion regarding forced ranking performance appraisals? Do they motivate employees? In my opinion, forced ranking performance appraisals can work for some companies, but not for everyone. For example, a company like GE or General Motors could possibly benefit from forced ranking performance appraisals because these companies are driven by efficiency and producing positive results for the bottom line. Since these companies employ hundreds of thousands of people, it’s important for them to efficiently weed out the underperformers while still maintaining the efficiency of the company. Companies, like advertising firms, who rely on a lot of innovation wouldn’t fair well in implementing forced ranking performance appraisals. When it comes to motivating employees, it’s a catch-22. If you have two employees who are in the bottom 10% of underperformers, one employee may use this as a motivation tool because their hierarchy of needs is being met and they enjoy their job. The other employee may not feel motivated because their hierarchy of needs isn’t met and the rating will only reflect their feelings towards their job. Bottom line, what motivates one may not motivate the other. 2. How would equity theory explain some employees’ negative reactions to forced rankings? Explain. The equity theory looks at a person’s perceptions on how fairly they’re...
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...opinion regarding forced ranking performance appraisals? Do they motivate employees? Explain. While at first I would somewhat agree with forced ranking performance appraisals, from a management and leadership perspective in order to assess who deserves merit for recognition, pay raises and promotions. But from an employees’ point of view, it can be very demotivating if one finds themselves at the lower end of the spectrum. Instrumentality may be negative and affect overall job security and satisfaction. Individuals may not perceive the forced ranking system as fair when being compared to their coworkers and inputs may vary from person to person. Overall, I feel that forced ranking does not motivate employees as there are a variety of factors to include that may each weigh differently (i.e. job experience, EI, reliability, productivity, quality, etc.). 2. How would equity theory explain some employees’ negative reactions to forced rankings? Explain. The equity theory explains some employees’ negative reactions from forced rankings by changing an employees’ inputs, how much effort to invest into their current job. The attitudes or mindsets of employees’ may change, that job security is more important than a raise. Or, the employee may just decide to resign from their current job position due to annoyance or perceived inequalities. The equity theory centers on overall pay as the outcome. 3. Based on Chapter 5, if you decided not to use forced rankings at your company...
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...different databases to help determine salary increases for their employees. In this case study titled, “Comparing Co-Workers Against Each Other: Does this Motivate Employees,” it is mentioned that many corporations are using either a forced or stacked ranking system to evaluate their employees performance based on whether they are performing at an acceptable level. These rankings force management to thoroughly evaluate their employees performance based on whether they are performing at an exceed expectations, meet expectations, or below expectations, some managers may rank at a different level than stated. According to Ivancevich, Konopaske, & Matteson (2012), the case study, it indicates that, “one-third of US corporations evaluate employees based on systems that pit them against their colleagues, and some leading to termination (p. 139). These rankings have placed management and employees in an uncomfortable position because managers have to thoroughly evaluate their employees on their performance. Management is forced to address any issues or problems that an employee has regarding his or her performance thus sometimes the ending results are not on a positive note. This process also brought about lawsuits against companies because employees feel as though they were being discriminated against. A lot of companies do not agree in using the ranking system due to the fact that it is unfair to all employees, it hinders collaboration and risk taking; it is a hindrance to the...
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...631: Management & Organization Behavior Case 5.1 3/19/2015 The case begins by stating “rigid rankings hinder the teamwork and risk-taking necessary for innovation (Ivancevich, Konopaske, Matteson, 2011).” That being said many companies used the described ranking systems to evaluate their employees, putting them against each other and some even lead to firing of low performers. A performance review is supposed to be a time to reflect on how an employee has or has not fulfilled the expectations of the manager and the individual goals that were set. In this case analysis, the technique of rank of employees by General electrical (G.E.) and Yahoo! are looked at. Both companies have used ranking scales and are now looking for a more innovative style to rank employees but still foster a motivational atmosphere. In the past, G.E. has used a 20/70/10 split (top 20 percent, the middle 70 percent, and the low-performing 10 percent) which required managers to place employees into one of the three groups hence comparing employees against one another (Ivancevich, Konopaske, Matteson, 2011). The managers rank employees against each other and then use the ranking to determine who receives a raise, bonus, promotions, and sometimes who gets fired. Forced ranking allows the top-ranked employees to be rewarded for their hard work. Yahoo! used a similar ranking system but compared employees against a standard, not against each other (Ivancevich et al., 2011). The importance of rank is what...
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...Question 1. What's your opinion regarding forced ranking performance appraisals? Do they motivate employees? Explain. I believe forced ranking performance appraisals can be motivating for some employees and not motivating for others. Individuals with strong high-order needs who know that they will be ranked come appraisal time will strive and perform in order to achieve the highest rank possible. Other individuals with weak high-order needs might not strive for a high rank. I believe these individuals might even perform below their ability because of perceptions (i.e. "why should I work harder because so and so will get a higher rank than me anyway"). Even though I have consistently ranked high whenever evaluated under a forced ranked system in the past, I personally do not like forced ranked performance appraisals and believe they can cause an organization more harm and be less productive because of the system. I served in the U.S. Navy from 1994 until 1999. During that time I was evaluated annually by my superior(s) in a quasi forced ranked performance appraisal system. At that time in the Navy there were three evaluation marks a sailor could receive: Promotable (average), Must Promote (above average) and Early Promote (Outstanding). The evaluation one would receive weighed heavily on the sailor's likelihood of being promoted to the next rank/pay grade at the next promotion cycle, which also occurred annually several months after the evaluations were given....
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...Week 2 Case Assignment 1. What’s your opinion regarding forced ranking performance appraisals? Do they motivate employees? Explain. I do not agree with forced ranking performance appraisals this process can be brutal. The system creates a competitive environment that can result in cutthroat, unethical behavior, and discourage workers. In addition, fellow workers are less likely to help, train, or share information with one another. This type of behavior will eventually break down an effective team. Replacing employees each year can also be costly and can lower productivity in the early months of adoption. Employee’s want their hard work to be recognized.( http://leraweb.org/publications/perspectives-online-companion/good-bad-and-ugly-forced-distribution-performance-reviews) The Expectancy Theory suggest employees are more likely to be motivated when they perceive their efforts will result in successful performance and, ultimately, desired rewards and outcomes.(Ivancevich J ,Konopaske R, & Matteson M pg. 123-127) Cutting a certain percentage of employees does not often reveal the root of the problem. When manager treat their employee’s good and motivate them this provides a more effective work environment. Motivation is a product of an individual's expectancy that a certain effort will lead to the intended performance, the instrumentality of this performance to achieving a certain result, and the desirability of the result (known as valence) for the individual. (Stephen...
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...1. I believe the force-ranking appraisal system leads to rankings based on factors other than performance and does not motivate employees. Because of employee concerns and perceived unfairness within the force-ranking system companies have changed their appraisal system. According to the case study, comparing co-workers against each other. Does this motivate employees, “Following a string of discrimination lawsuits from employees who believe they were ranked and yanked based on age and not merely their performance, fewer companies are adopting the controversial management tool” (Ivancevich et al, P 139). The force-ranking appraisal system does not motivate employees because employees are not rewarded for high performance or achieving desired outcomes. According to Victor Vroom’s expectancy theory motivation is affected by four components, effort-to-performance (E-P) expectancy, performance-to-outcomes (P-O) expectancy, outcomes, and valence. Vroom’s expectancy theory contends employees expect to be rewarded when they perform at a high level and managers not only communicate to employees their success but also reward it (Ivancevich et al, P 125). The force-ranking system also affects motivation through perceived inequity in the system. The equity theory explains employees compare their efforts and rewards with those of similar work situations. This theory contends, “ Motivation is based on the assumption that individuals are motivated by a desire to be equitably treated...
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...What’s your opinion regarding forced ranking performance appraisals? Do they motivate employees? Explain. I do not agree with forced ranking performance appraisals this process can be brutal. The system creates a competitive environment that can result in cutthroat, unethical behavior, and discourage workers. In addition, fellow workers are less likely to help, train, or share information with one another. This type of behavior will eventually break down an effective team. Replacing employees each year can also be costly and can lower productivity in the early months of adoption. Employee’s want their hard work to be recognized.( http://leraweb.org/publications/perspectives-online-companion/good-bad-and-ugly-forced-distribution-performance-reviews) The Expectancy Theory suggest employees are more likely to be motivated when they perceive their efforts will result in successful performance and, ultimately, desired rewards and outcomes.(Ivancevich J ,Konopaske R, & Matteson M pg. 123-127) Cutting a certain percentage of employees does not often reveal the root of the problem. When manager treat their employee’s good and motivate them this provides a more effective work environment. Motivation is a product of an individual's expectancy that a certain effort will lead to the intended performance, the instrumentality of this performance to achieving a certain result, and the desirability of the result (known as valence) for the individual. (Stephen E. Condrey - 2010 - Business &...
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...develop, motivate, and retain a high performing team of talented individuals. Employment of an effective, yet ethical, performance management process is critical to the long-term success of any organization. Indeed, it is perhaps the most vital function of thriving business leaders. Furthermore, the ability of a manager to develop and retain his/her talent is a direct reflection of his/her leadership skills. This paper will discuss the appraisal process utilized by the world's largest home-improvement retailer, The Home Depot concluding with recommendations for improvement. Commencing in 2004, the organization adopted a forced ranking performance appraisal system. Careful evaluation of this assessment process suggests that the compulsory classification of an arbitrary number of employees has resulted in several unintended consequences while raising ethical concerns. The following topics relative to the utilization of a forced distribution system have been evaluated. The proposed benefits of forced distribution. The impact of forced ranking on employees and managers. The results of a forced ranking model on employee retention. Application of ethical theory to the forced ranking model. SWOT Analysis. Conclusion. This review of the forced ranking methodology will assess the moral and ethical implications of the model. Additionally, it will evaluate the impact on the organization, as well as the individuals employed by the firm. The Proposed Benefits of Forced Distribution ...
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...the initiation, direction, intensity and persistence of human behavior. A widely used trend in organizations is forced ranking procedure; this is used by managers to make a distinction between the levels of performance among workers. A grading system is established and employees are ranked based on the job performances. Most manager aim is to acquire information about the talent within the organization and also to eliminate workers that persistently ranked low. Based on my reading and experience, forced ranking can prove to be very effective provided that is free from all biases. As with all system, there are pros and cons. We understand some of the negative implications that this can have on employee’s morale, however this can help employers identify talent (talent management) which will compliment the organization’s performances, it also can motivate workers to work harder to be among the high ranks and also all the hard work of employees will be rewarded of some sort from maintaining their position in the company, receiving bonuses and promotion. This method also helps low performers to identify that they need improvement and or remove them from the organization. 2. Equity theory deals with how a person perceives treatment in social exchanges at work and their level of motivation is heavily depended upon this perception. In relations to the case, force ranking is an appropriate way to examine an organization’s current standing in terms of output and their quality of human...
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...] Section 1 In this section I will be looking at the functions and aspects of a successful business. Ranging from, what a manager does to what’s expected of them and how they factor in to a business’s planning and organisational structure. Role of Management The role of management within a business is largely dependent on the type of business. Small businesses are likely to have what is called a “flat structure” where employees have more than one role or skill and can take over duties from another employee if needs be. Flat structures are especially popular with new businesses or “start-ups” where there are often people who have experience in the industry but are new to management. The Flat structure allows them to get hands on and build their business quickly, without going through a hierarchical structure. Larger businesses, typically corporations, use a tall structure. This management style puts emphasis on the individual skills of employees and co-ordinating employees together in teams to complete tasks. The tall structure caters towards employees who have specialist skills to complete large tasks which couldn’t be accomplished otherwise. Within a tall structure there is a larger emphasis on performance than there would be in a flat structure. Depending on the structure the style of the business, management will vary, however, outside of these structures there are common elements which are the basis for all forms of management; Planning Whether the business is a...
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...largest investment banks in the world. With over $3 billion in revenue and 7,000 employees spread across 18 global locations, the firm was a powerhouse in the global financial industry. A job at Morgan Stanley was one of the most recognized resume builders and after spending a few years of one’s career at the firm, the opportunities available were often endless. However, in the early 90’s Morgan Stanley found itself stuck in a corporate culture stemming back to the 40’s and 50’s, with a narrow development program that revolved around an employee’s ability to add to the top and bottom line. Bring in the revenue, and life was good. Consistently fail to show numbers, and start packing your things. In 1992 management began to take a critical look at the current performance appraisal system. As competing firms in addition to the general business environment progressing with development and training programs, it was obvious to high-level executives at Morgan Stanley that the firm was lagging behind in its ability to develop talent sustainably. Numbers were growing, but the firm was missing out on numerous opportunities and even jeopardizing its future by not giving its employees the opportunities and treatment they sought. The current appraisal system was dealt with in an open forum, with groups coming together as a team and orally presenting their opinions on newer employees. Experience employees appraisal was limited to a straight forward “Are you meeting your numbers or not...
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...IMPLICATIONS IN ORGANIZATIONS 8 5. CONCLUSION 9 6. REFERENCES 10 PERFECT PIZZERIA 1. INTRODUCTION Perfect Pizzeria of South Ville, Illinois, is a franchise of a large chain which is headquartered in Phoenix, Arizona. Although the business is successful, it is experiencing employee and managerial problems. 2. THE BACKGROUND AND THE SITUATION OF THE CASE The case describes a situation of a manager of the Perfect Pizzeria in South Ville, Illinois. The chain pizzeria restaurant manager is forced to make certain decisions in order to receive his bonus. The manager is paid this bonus only if the damaged or unsold food percentage is low at the end of the month and must devise methods to ensure that the employees don’t abuse their six hour benefits and give away extra food at no cost to their friends. If the manager does not achieve this bonus he is paid his normal wages. In the case scenario, the manager found that the more restrictions he put on the employees food allowance or punitive action he took, the higher the damaged or unsold goods margin at the end of the month will be. This would indicate that the less they were allowed to eat, the more they ate and gave away to their friends when the manager was not present. 3. CASE 6A-PERFECT PIZZERIA 1) Consider the situation where the manager changed the time period required to receive free food and drink from 6 to 12 hours of work. Try to apply each of the motivational approaches to explain what happened...
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...What should leaders do when (individual, team, organization) performance is lacking? Every leader in an organization should evaluate employee’s performances, whoever a leader in an organization has it’s own sub-ordinates; their sub-ordinates’ performances should be evaluated. Once an individual, team or organization performances are lacking, leaders should either motivate or penalize the lack of performances. In real world, I think both works. Through a good rewarding system, one should be motivated for gaining a bigger paycheck or recognition form their senior. Everyone gets pay for their services, under a good rewarding systems, one who performed better than required can get a better pay or promotion always work in a real business world. Vise versa, one who didn’t pay less or layoff sounds fair. Employee evaluations can always be a positive, encouraging, and a good outline on how they are doing in the many categories of their job responsibilities. On the other hand, it can also be considered a waste of time and doesn’t work if neither leader nor their sub-ordinates take it seriously and just go through the motions. 2.) Should the new performance review system at Vitality Health be revised? What changes would you recommend to the new performance management system? How should the changes be implemented? Carefully consider the consequences of your recommendations. According to the new performance management system, the system would institute a forced distribution model...
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...and/or past performance relative to his or her performance standards. Performance appraisal always involves setting work standards, assessing the employee's actual performance relative to those standards, and providing feedback to the employee. Diff: 1 Page Ref: 306 Chapter: 9 Objective: 1 Skill: Concept 2) The primary purpose of providing employees with feedback during a performance appraisal is to motivate employees to ________. A) apply for managerial positions B) remove any performance deficiencies C) revise their performance standards D) enroll in work-related training programs E) change their peer evaluation procedures Answer: B Explanation: The purpose of providing feedback to the employee is to motivate him or her to eliminate performance deficiencies or to continue to perform above par. Diff: 2 Page Ref: 306 Chapter: 9 Objective: 1 Skill: Concept 3) Which of the following is NOT one of the recommended guidelines for setting effective employee goals? A) assigning specific goals B) assigning measurable goals C) assigning challenging but doable goals D) administering consequences for failure to meet goals E) encouraging employees to participate in setting goals Answer: D Explanation: Effective goals should be specific, measurable, attainable, relevant, and timely. Goals should be challenging but doable, and employee participation should be encouraged. Giving consequences for failing to meet goals is not...
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