Forced ranking and
performance management
Forced Ranking is a system of
performance management where managers must identify a
pre-determined proportion of its best and worst performers,
regardless of how well or badly they are actually performing.
Forced ranking is often used to
reward “top” performers with bonuses and development opportunities
while firing the “worst” performers each year, or at least
“managing them out of the business” or encouraging them to
leave.
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