Question

Jack Welch’s system at General Electric. Would you want to work under his system? Why or why not? Explain his system of “forced ranking” as part of

your response. What are some consequences of this system that may be negative? Positive?

Answer 1

I would want to work under his system as it keeps one on his toes and never lets your guard down because of competition. It also increases your work capacity and ability to handle pressure situations. So it gives you a lot of good experience which will be helpful for the career. It also makes one accountable to your organization and provides you with feedback bout your performance.

I would not like to work under such a system as it puts tremendous pressure to deliver the results. Sometimes, it becomes too much to cope with and a good performer might not perform under undue stress. There will always be a fear of losing one's jobs. This will disrupt the work-life balance of the employee.

Forced ranking is a system of appraisal that identifies the company's best performers and worst performers. The worst performers are then culled from the workforce. The best performers are given the best incentives and perks, growth, promotions etc. It is a relative performance appraisal where the performance of one employee is compared to others. Some of the negative consequences of the system are that intense competition will decrease the morale of the employees and put undue pressure to perform. It will disrupt an employee's work-life balance. Employees will work in silos rather than in teams as their individual contribution matters. They will be reluctant to share information which might be needed for other employees.

Positives are that it raises the performance of an employee. Intense competition enables him to work under pressure and raise his game. His performance is recognised and he is assured that he will be rewarded for his performance. Growth will be satisfaction there for performers. Company's productivity and efficiency increases.