Reactions to Different Types of Forced Distribution Performance Evaluation Systems |
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Authors: | Brian D Blume Timothy T Baldwin Robert S Rubin |
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Institution: | (1) School of Management, University of Michigan, 3119 WSW Bldg., Flint, MI 48502, USA;(2) Kelley School of Business, Indiana University, Bloomington, IN, USA;(3) Kellstadt Graduate School of Business, DePaul University, Chicago, IL, USA |
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Abstract: | Purpose We isolate and describe four key elements that distinguish different forms of forced distribution systems (FDS). These key
elements are the consequences for low performers, differentiation of rewards for top performers, frequency of feedback, and
comparison group size. We examine how these elements influence respondents’ attraction to FDS.
Design/methodology/approach Undergraduate students (n = 163) completed a policy capturing study designed to determine how these four FDS elements influence their attraction to
FDS. We examine the relative importance of these elements that most influence attraction to different FDS, as well as individual
attributes (i.e., cognitive ability, gender, and major) that may affect those preferences.
Findings Respondents were most attracted to systems with less stringent treatment of low performers, high differentiation of rewards,
frequent feedback and large comparison groups. Consequences for low performers were nearly twice as influential as any other
element. Respondents with higher cognitive ability favored high reward differentiation and males were less affected by stringent
consequences for low performers.
Implications Before practitioners implement FDS, it would be prudent to consider all four elements examined in this study—with the treatment
of low performers being the most salient issue. Future accounts of FDS should clarify the nature of these elements when reporting
on FDS. Such precision will be useful in generating a knowledge base on FDS.
Originality/value We add precision to the discussion of FDS by identifying four key elements. This is one of the first studies to examine
perceptions of FDS from a ratee perspective.
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Keywords: | Forced distribution Performance management Performance evaluation Policy capturing Relative performance appraisal Force ranking |
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