RANKING SYSTEMS
Ranking systems take a markedly different approach by comparing employees against one another and then assign a rank order. This is similar to grading system in the classroom. Here we do not apply a set standard to all employees and the best performer can determine where everyone else will fit in. This system promotes healthy competition among employees and when reinforced by an effective incentive programme, it even develops a cascading effect on productivity enhancement. There are various types of ranking, which is primarily decided based on the organizational need and nature of data.
- Forced Distribution: It divides the workforce into three categories: high performance, average performance, and low performance. This distribution ...
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