Comparing Co-Workers Against Each Other : Does This Motivate Employees?

In: Business and Management

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In recent years, organizations have been observed to be making use of tough-minded approach of ranking associates against each other. This approach is known as forced ranking performance appraisal method. It can be argued that this approach is dictated to force managers to make the performance evaluation process truly reflect how each team member is performing, relative to others, with the ultimate goal of being more productive employees, who perform at levels to make service, revenue, and growth goals attainable. In my opinion, the system does force managers to have hard conversations with employees that they might otherwise have avoided. As any manager knows, it’s often easier to avoid difficult, painful performance-related conversations than to confront them head on. This method literally forces performance issues to be addressed; for an organization that wants to tighten or formalize its management processes. I believe the forced ranking method can have benefits however, from a hands-on management perspective, there clearly are problems associated with it. Putting it simply, it causes employee morale problems. An issue with forced rankings is that the system results in a heightened focus on individual performance and did very little to promote team building which is always valuable in a corporate environment.
The Equity theory is built-on the belief that employees become de-motivated, both in relation to their job and their employer, if they feel as though their inputs are greater than the outputs. The equity theory centers on overall pay as the outcome. Employees can be expected to respond to this in different ways, including de-motivation, reduced effort, becoming disgruntled, or, in more extreme cases, perhaps even disruptive. People feel that the ranking method violates employees' rights causing some lawsuits and accusing the employer of discrimination.…...

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