The CEO of XYZ Corporation decides to take a similar approach to performance rew

Question

The CEO of XYZ Corporation decides to take a similar approach to performance reward systems used by General Electric/Jack Welch and a number of other organizations. This includes: 1) requiring managers each year to rank their employees by three categories: High Performers (Only top 10%), Middle Performers (80%), and Low Performers (Bottom 10%) and 2) distributing year-end bonuses and raises to employees commensurate with their ranking classification. Top performers would receive the largest bonuses and raises while bottom performers would not receive any bonuses or raises, and in fact, would be managed out of the organization if unable to improve. Consider the different concepts (e.g., Positive and Negative Reinforcement; Punishment; Schedules of Reinforcement) and perspectives (e.g., Kerr, 1995) Do you think possibility of an "average" employee getting no bonus at all would motivate them to stay out of the low employee-performer group?

Explanation / Answer

Favorable circumstances:

Offers an obvious technique for everybody to comprehend what the organization requires of them,

The procedure endeavors to make the workers all the more elite situated.

The framework helps the organization in perceiving superior workers and makes it simple for them to pick who to advance for higher parts and obligations.

Detriments:

Workers have a tendency to leave after a terrible survey in the evaluation. Great entertainers may select moving out as they are compelled to be fit into the bend bringing about a survey which they would feel is not as much as what they assume their commitment is worth.

It might bring about an excessive amount of weight on the representatives toward the end of the year.

Input got amid evaluation might be once in a while astounding as they would have not expected poor rating when they are viewed as great at their occupation consistently.

Makes an undesirable inside rivalry among companions frequently prompting office legislative issues and non-collaboration among colleagues.

Hidden presumption of Bell bend sort of procedure is that, workers all in all are normal entertainers, which is not valid by and large.

Once in a year input would not give worker enough opportunities to perceive and redress his/her oversights.

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