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Forced Rankings

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Submitted By jmack95
Words 5200
Pages 21
03/01/2014
Introduction
Managers are charged with many significant responsibilities. In order to be successful, they must attract, hire, 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 "Performance evaluation systems are one of the most pervasive and important human resources systems in organizations today" (Baldwin, Blume, and Rubin, 2009, p. 77). Supporters of the forced distribution model claim that it has a

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