Forced Distribution Rating Systems and the Improvement of Workforce Potential: A Baseline Simulation

Abstract

Through simulation we investigate how characteristics of forced distribution rating systems (FDRS), which require firing a certain percentage of the workforce each year, might interact with ratings reliability, selection validity, selection ratio, and voluntary turnover to improve average workforce performance potential. Results suggest that a FDRS could lead to noticeable improvement in workforce potential, that most of the improvement should be expected to occur over the first several years, and that improvement is largely a function of the percentage of workers to be fired and the level of voluntary turnover. Greater improvement is associated with higher numbers being fired and lower levels of voluntary turnover. The effects of bundling FDRS with recruiting and retention initiatives are also investigated.

Transformational leadership climate: Performance linkages, mechanisms, and boundary conditions at the organizational level

“…We further suggest an organization's positive affective climate is positively associated with workforce performance (Scullen et al, 2005;Shaw et al, 2005). As indicated earlier, we focus on three aspects of workforce performance: (a) overall employee productivity, (b) aggregate employee task performance behavior, and (c) aggregate employee organizational citizenship behavior.…”

“…Following previous research that utilized employees' performance-relevant behaviors at various levels of analysis, including the organizational level (e.g., Schnake & Dumler, 2003), we therefore cast employees' task performance behavior, organizational citizenship behavior, and overall productivity as aggregate, organizational-level constructs to capture the extent to which employees throughout the organization collectively engage in the respective actions (Scullen et al, 2005). As Organ (1988) noted, such aggregates of employees' performance are often more relevant for organizational effectiveness than individual-level performance (see also Ostroff, 1993;Ployhart, 2004).…”

Performance Appraisals and the Impact of Forced Distribution—An Experimental Investigation

“…Recently, Schleicher et al (2009) have experimentally investigated rater's reaction to forced distribution and …nd that rating decisions are perceived as more di¢ cult and less fair under a forced distribution system than in a traditional setting. Scullen et al (2005) conduct a simulation study and show that forced distribution can increase performance in the short run as low performers are driven out of the …rm. This e¤ect, however, becomes smaller over time.…”

A Framework for Employee Appraisals Based on Inductive Logic Programming and Data Mining Methods

“…There are many types of performance appraisal systems, which are based on different performance appraisal methods such as management by objectives (MBO) (Drucker, 1954), 360 degree feedback (London and Beatty, 1993), behaviourally anchored rating scales (Schwab, Heneman, and Decotiis, 1975) and forced distribution methods (Scullen et al, 2005). …”