In the past, organizations focused exclusively on performance appraisal. Today, more organizations are practicing performance management, which goes beyond the appraisal, focusing on development as well as linking individual performance to organizational strategy.
GE started a forced distribution appraisal system that resulted in firing those whose performance ranked in the bottom 10 percent each year, and this approach was adopted by other companies. Giumetti and Schroeder (2014) called this forced distribution appraisal system a “rank and yank” system.
Describe performance appraisal and performance management.
Compare and contrast the two approaches. Identify the strengths and weaknesses of each.
Does a forced distribution appraisal system lead to increased organizational performance?
What has been your experience with these approaches?
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