An investigation of the Forced Ranking System (FRS)

Abstract

This study postulates that forced ranking system for being performance management intervention will be effective to the point that managers and subordinates have shared perception about the corporate goals and the degree to which it meet the needs of both groups. This research project was conducted: a) to critically analyze the forced ranking system being part of PPL corporate system; b) to determine the extent to which forced ranking system has contributed towards employee turnover rate; and c) to assess employee acceptance towards the system of performance management, whether supervisor and subordinates share the same perception towards forced ranking system. The sample study included 55% employees from lower management level and 45% employees from middle management level as a survey of Pakistan Petroleum Limited. Bell curve analysis depict mixed results about forced ranking system where as questionnaire feedback shows major disliking towards the system by the lower management. However, in general, there was support for the notion that both level of management find this process along with PA to be a worthwhile organizational practice. Approximately 75% of the respondents from lower management and 100% from middle management indicated that they would participate in the appraisal program whether they were required to do so or not for being vital for their organization.