Comparative study of forced distribution and absolute rating performance management systems Online publication date: Wed, 30-Oct-2013
by Gunjan Malhotra; Amitava Mukherjee
International Journal of Business Excellence (IJBEX), Vol. 6, No. 2, 2013
Abstract: This paper discusses mainly two systems of performance management, the forced distribution system and the absolute rating system. Both systems are in use in organisations. We make a comparative study between both these systems based on factors such as their effect on motivating employees, their effect on overall performance, employee perception and rating of each system, etc. It is then decided whether the organisations are following the right path in following a particular system. An analysis based on age group and seniority is conducted to determine the effect of seniority and greater work experience on employee perception towards performance management. We survey to find out under which system employees will be more comfortable to work. We also determine the fairness of each system according to employees. A somewhat new performance management system is also proposed in the end trying to eliminate the flaws in each system.
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