Fairness and accuracy of our appraisal instruments
Recently, many companies have decided to reduce their leniency problem (ratings are too high) by implementing new instruments such as the forced distribution system. In this system, a certain number of employees are forced into different categories (10% in the top category, 20% in the next highest, etc.) to avoid leniency. Many of the good employees are rated average or below average based on the "forced" nature of this instrument. These employees claim the system is unfair since they are doing a good job and are not receiving an accurate evaluation. The system can also be de-motivating. GE implemented this system to lessen leniency and to rid the firm of those in the lowest category. What do you think of this forced distribution system? What do you think of the accuracy and fairness of the system in your firm?