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Question : Which of the following is a disadvantage of the forced distribution method of performance appraisal?

 

Option 1: Subjective evaluation

Option 2: Limited differentiation among employees

Option 3: Time-consuming process

Option 4: Lack of employee involvement


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Limited differentiation among employees


Solution : The correct answer is (b) Limited differentiation among employees.

A disadvantage of the forced distribution method of performance appraisal is limited differentiation among employees. This method requires categorizing employees into predetermined performance levels or categories, typically based on a fixed distribution curve (e.g., top performers, average performers, poor performers). The predetermined distribution curve often limits the number of employees that can be placed in each category, resulting in a forced distribution of ratings. As a result, this method may not accurately reflect the actual performance variations among employees, leading to limited differentiation and potentially overlooking nuances in individual performance levels.

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