Precarious curve ahead: The effects of forced distribution rating systems on job performance

• Introduces an integrative model for predicting, explaining, and managing the effects of forced distribution rating systems on job performance:○Forced distribution rating systems may increase task performance through greater motivation as well as attraction and retention of top talent.○But may decrease citizenship performance and increase counterproductive performance through perceptions of organizational injustice and dysfunctional competition.○Over time, the risks of a forced distribution rating system on job performance may outweigh initial benefits, particularly under certain task (interdependence) and group (cultural) characteristics.
• Concludes with implications for human resource management research and practice.

The forced distribution rating system (FDRS) is frequently used to appraise an employee's performance. The purpose of this paper is to synthesize theory and empirical research to present an integrative model for understanding the potential benefits and risks of a FDRS on the three components of job performance: task, citizenship, and counterproductive performance. A FDRS may lead to higher task performance in the relatively short-term, as it initially motivates effort as well as helps attract and retain top talent. Caution is in order, however, as a FDRS may also lead to lower citizenship performance and higher counterproductive performance through injustice perceptions and dysfunctional competition. Over time, the risks of a FDRS on job performance may increasingly outweigh initial benefits, particularly under certain task (interdependence) and group (cultural) characteristics. Implications of a FDRS for human resource management research and practice are discussed.