Performance Measurement Fairness
Thinking Ethically: Are Forced Rankings Fair?
Case Summary:
The forced ranking approach to performance management is the practice of using forced rankings to identify the top performers to retain and the bottom performers to let go. Jack Welch of General Electric introduced and later championed this method, called by critics “rank and yank,” and other companies such as Lending Tree and American International Group (AIG) use it. Review the “Thinking Ethically: Are Forced Rankings Fair?” essay at the end of Chapter 8 and answer the following questions.
Questions:
Describe the activities involved in the performance management process.
The forced ranking approach is one of several methods of managing performance described in the textbook. Compare and contrast the fairness of forced rankings relative to two other methods of measuring performance described in this chapter.