Forced distribution method

Forced distribution method is used for evaluation of employees. It is based on ranking individual workers to typically 3 basic categories (poor, good, excellent), rankings are communicated within company to create more internal competition and to increase motivation but some scholars believe that it could lead to hostility towards colleagues and decrease overall performance, can cause problem with communication and create bad incentives.

Term forced comes from necessity to grade workers to relatively small number of categories, forcing managers to choose if particular person is "good" or "poor" without possibility to grade them in the middle or later compare performance with other employees based on objective measures.

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