Answer

Forced Distribution Method

In business management, there are several approaches that companies could use to increase their general performance. One of the methods is the forced distribution method. This method is widely used in both small and big firms. This essay will analyze the characterization of the forced distribution method as well as potential problems associated with the system.

Characterization

The forced distribution method, also known as “forced choice” or “forced ranking” is an employee performance management strategy widely used in small and large-scale manufacturing corporations. This employee evaluation strategy groups and ranks employees one against the other in terms of performance and skills. The result is usually a bell curve showing how high or low an employee has performed. The top-ranking employees are usually motivated to exceed their expectations with incentives and promotions (Dessler, 2018). Middle-ranking workers can, at times, be given sight raises but are given more responsibilities to encourage them to attain their goals. Poor performers hardly receive any benefits but are supported in enhancing their performances. In most cases, such employees are released from the company to seek training elsewhere.

Analysts have proposed that forced distribution strategy can be a vital step in supporting a floundering organization, especially in situations where the management has avoided conversing with or evaluating the staff. Utilizing an arbitrary arithmetical system to rank workers based on their achievements compared to their peers removes sentiment as well as bias, forcing organization leaders to confront workers who have personal relationships with their coworkers and are underperforming (Dessler, 2018). Proponents attest that firms that find this idea taxing have failed to lay an effective groundwork in communication and office culture. Nevertheless, critics propose that some business consulting companies support moving away from the ranking method of management. 

Advantages and Disadvantages

Implementation of the forced distributions model comes along with a series of benefits as well as risks. Some of the benefits include streamlining the taskforce and instinctively creating a team of highly motivated as well as capable employees with the ambition of succeeding (Dessler, 2018). However, the risk of employing this strategy is that it increases employee competitiveness to the point of overlooking teamwork and positive working culture, resulting in burnout, sabotage of subordinates to realize a personal gain, and high turnover. 

Example of Success

Jack Welch, General Electric CEO was a strong campaigner of this method and used it for almost 20 years when he was the head of the firm. With this methodology, the organization’s market value increased from $12 billion to $411 billion. A strict rule of terminating the bottom-ranked staff yearly was one of the many examples that Welch pushed his company to greater heights regarding its market worth (Dessler, 2018). By removing low-performing employees, the company was able to incentivize high performance hence cutting on costs. The remaining employees were able to establish a sleek and powerful corporate, whose main aim was reaching the highest possible social-financial status.

Examples of Failure

Regrettably, Yahoo has been one of the companies that have been on the receiving end of cons linked to the forced distribution method. Through the years, the company has been battling a series of lawsuits brought on by the subjective termination of many employees who were victims of the new initiative (Dessler, 2018). Some claimants alluded that the process was biased against men while others said that it was unfair to men.

Conclusion

The forced distribution method has been termed as an effective tool for companies that aspire to increase their level of performance in the market. General Electric is one of the companies that have benefited from this policy. However, studies indicate that the approach is disadvantageous as it results in burnouts, sabotage, and increased turnover.

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