What is one way city officials could have had more

This preview shows page 20 - 22 out of 37 pages.

What is one way city officials could have had more success in achieving their cost-cutting goals? Multiple Choice Quickly terminating trash collectors who were exhibiting counterproductive behavior Allowing for overtime pay to continue Reducing the number of pickups for drivers Including the trash collectors in the process of designing the cost-saving program •• Upgrading trash trucks
Why Are Some Companies Yanking Forced-Ranking?
Read the case about the Adobe’s performance-management practices. Then using the 3-step problem-solving approach, answer the questions that follow. Money is an important tool for both attracting and motivating talent. If you owned a company or were its CEO, you would likely agree and choose performance management practices to deliver such outcomes. You would probably also favor rewarding high performers and having an effective means for removing low performers. For decades, forced-ranking appraisal practices have helped organizations and their managers differentiate employee performance and achieve both objectives —rewarding top performers and providing grounds for terminating the low performers. Broad Appeal These qualities made forced ranking (also known as forced distribution or “rank and yank”) a popular performance management tool for many marquee companies, such as Ford Motor Company, 3M, and Intel. GE, for instance, made the approach famous using its “vitality curve” to rate employees into three categories—top 20 percent, middle 70 percent, and bottom 10 percent. The top often received raises two to three times greater than the next group, while the bottom group was often put on probation or fired.1 Microsoft also used forced distribution to ensure it was always raising the bar on talent and performance. It replaced its lowest-performing employees with the best in the market and ensured there was always more exciting work than it had people to do it.2 One argument in support of forced ranking is increased accountability. It requires managers to do the difficult work of differentiating performance. While nobody likes to be the bearer of bad news, not confronting performance issues is an underlying cause of score inflation (grade inflation in school) and mediocrity. The implication is that not everybody can be a top performer, and it is management’s job to know and acknowledge the differences. Forced ranking also can be used to remove “dead wood.” Employees who aren’t as driven, capable, or competitive are driven out and replaced with those who are.3 Another central supportive argument is that resources are constrained, notably people and money.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture