Forced distribution performance evaluation systems: Advantages, disadvantages and keys to implementation

Some organizations, such as General Electric, currently use or have used forced distribution performance evaluation systems in order to rate employees’ performance. This paper addresses the advantages and disadvantages as well as the legal implications of using such a system. It also discusses how an organization might assess whether a forced distribution system would be a good choice and key considerations when implementing such a system. The main concern is whether the organizational culture is compatible with a forced distribution system. When a company implements such a system, some important issues to consider include providing adequate training and ongoing support to managers who will be carrying out the system and also conducting adverse impact analyses to reduce legal risk.