Performance Appraisals

In my opinion, forced ranking performance appraisals is an effective way to judge production. I can see why people are against this method, saying that it kills the morale and that it creates a cut throat environment that doesn't involve teamwork. But overall it can motivate a person to work harder and to make sure they aren't in the bottom percentage in the ratio. The system puts employees into different categories: top 20 percent, the middle 70 percent, and the low-performing 10 percent. The managers rank employees against each other and then use the ranking to determine who receives a raise, bonus, promotions, and sometimes who gets fired.

Forced ranking allows the top-ranked employees to be rewarded for their hard work. I've worked in this type of method and was very motivated; trips, gift cards, and money are a great motivator in a sales position. While the lower ranked employees are either let go or put on some type of probationary period. This method makes it easy for an employee to see that they need to improve and it's very serious, causing them to make improvements and motivate them to do a better job producing quality work. In my opinion this method demands high performance in the workplace and it will continue to improve.

The equity theory focuses on employees being treated fairly in a work environment. This theory shows how employees react to the forced ranking method. People fill that the ranking method violates employees' rights. Causing some lawsuits and accusing the employer of discrimination.

The equity theory really shows how losing a promotion and/or raise really affects the employee motivation and commitment to the corporation. Employees want to be treated equally and when they're not there's no motivation. Employees will lower productivity, quality is reduced, you have an increase in absenteeism, and voluntary resignation. With the equity theory employees want a fair balance between