Manag., November-2017 – Q15

0. In which one of the following methods ofperformance appraisal, predetermined percentages of rates are placed in various performance categories?

  • Option : B
  • Explanation : Forced Distribution Method: Forced distribution method is a simple method to understand and very easy to apply in organizations. Under this method, the two factors, viz., job performance and promotability is used for rating. Employees are placed between the two extremes of good and bad job performances. For example, 10%are placed at the top end of the scale (given outstanding merit), 20% good rating (i.e., above the average) 40% satisfactor (or average) 20% fair and 10% unsatisfactory (or below average or poor). This forced distribution method assumes that, of the total personnel, 10% must go to the top grade, 20% to the second grade, 7% to the middle grade, 20% to the grade next to the lowest end of the scale and 10% of the lowest grade.
    The system is used to eliminate or minimize any biasing by the one who rates so that all personnel may not be placed at the higher and or the lower end of the scale.
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