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Comparing Co-Workers

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Submitted By Melrorie50
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Many large corporations use different databases to help determine salary increases for their employees. In this case study titled, “Comparing Co-Workers Against Each Other: Does this Motivate Employees,” it is mentioned that many corporations are using either a forced or stacked ranking system to evaluate their employees performance based on whether they are performing at an acceptable level. These rankings force management to thoroughly evaluate their employees performance based on whether they are performing at an exceed expectations, meet expectations, or below expectations, some managers may rank at a different level than stated. According to Ivancevich, Konopaske, & Matteson (2012), the case study, it indicates that, “one-third of US corporations evaluate employees based on systems that pit them against their colleagues, and some leading to termination (p. 139). These rankings have placed management and employees in an uncomfortable position because managers have to thoroughly evaluate their employees on their performance. Management is forced to address any issues or problems that an employee has regarding his or her performance thus sometimes the ending results are not on a positive note. This process also brought about lawsuits against companies because employees feel as though they were being discriminated against. A lot of companies do not agree in using the ranking system due to the fact that it is unfair to all employees, it hinders collaboration and risk taking; it is a hindrance to the company’s growth (Ivancevich, Konopaske, & Matteson, 2012, p. 139).
General Electric was one of the companies that initiated the use of the forced ranking systems while still including flexibility. The former Chief Executive, Jack Welch required the managers divide the employees talent into three categories of 20/70/10. The 20% were the top performers, the 70%

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