Forced Ranking in Mid-Size Companies: Is It Really Effective for Employee Appraisal?

Hi!

Going by your experience, how successful is forced ranking/normalization in a mid-size (150-200 employees) organization? Which is the most scientific way of appraisal for this size of organization?

Hi,

Any group above 50 can follow the process of normalization/forced ranking. Even if you have 100-200 people in the organization, all cannot be average, above average, or below average. It is important to differentiate performance, and NPC is the best way for organizations to determine that.

Regards,
Yasha

Normalisation is an inherent part of the appraisal process in mid-sized and large companies. Normalization is the process of reviewing the ratings of each group as a whole to ensure the ratings are in line with recommended norms, and the percentages are generally determined by HR. As a general guideline, the normalized rating of an employee would be arrived at by considering the difficulty of the assignment, the importance of the Key Result Areas (KRA) attached to the individuals, etc. This rating would be relative to the performance of other employees in the group, taking into account the same factors. Certain parameters have to be defined to arrive at normalized ratings.

I hope this information is sufficient.

Normalization is an inherent part of the appraisal process in mid-sized and large companies. Normalization is the process of reviewing the ratings of each group as a whole to ensure the ratings align with recommended norms. The percentages are generally decided by HR.

As a general guideline, the normalized rating of an employee is determined by taking into account the difficulty of assignments, the importance of KRAs attached to the individuals, etc. This rating is relative to the performance of other employees in the group considering the same factors. Certain parameters need to be defined to arrive at normalized ratings.

Hope this input would suffice.

Hi all,

For a 25,000-employee organization like NTPC, it follows a normalization procedure for its PACE score. That's the system they follow in PMS.

Regards,
Aanchal

Hi,

You could also consider taking up rating integration. It is a process that is part of the 360-degree feedback where the appraisers (subordinates, peers, and supervisors) meet to justify their ranking of the appraisee.