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Though there are many advantages in using this system, it also comes along with some disadvantages and struggles that a company may face if they don’t use this model correctly. First of all, if employers aren’t making the top 20 percent cut they will feel discouraged and can affect their abilities to do their job properly. For example, if someone were to have a bad month but usually are excelling in their job will face being in the “mediocre” category and will not feel confident in what they do and may quit or be fired if they continue to struggle. Just because an employer isn’t in the best rankings it doesn’t mean they should necessarily be fired as they may go elsewhere and turn out to be an excellent worker. In addition, firing the bottom 10 percent and hiring more people to replace them is very costly due to the fact that they will have to pay out the current workers to get them out and wait two weeks until they can get the new people. To make sure the others stay patiently waiting, you may have to bribe them with money or offer them a higher salary to make them leave their current job position and join your company.
To further analyze this model, “a study by Drake University professor Steve Scullen, shows that forced ranking loses its effectiveness after a couple of years since the average quality of workers increases and there are fewer “C” players to identify. ” This means that after years go by there will be some workers who have been there for a long time and will eventually drop in the rankings due to other employers who also have been with the company the same amount of time but are having a better month. Which makes it inaccurate to rank employers who have been there for years comparing them to others who may have joined the company recently and are still learning lots. James McDonald Jr. said that “A forced ranking system should not be used simply as a means of reducing headcount. ” Employers may get jealous or feel not wanted by the company if the top performers are getting bonus cheques and have the spotlight on them while they are working just as hard but don’t make the ‘A’ category cut. After analyzing both advantages and disadvantages, my opinion is that the cons outweigh the pros.
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