Forced Distribution Rating Systems (commonly referred to, incorrectly, as Stack Ranking Models) are intended first and foremost to identify the top performers a

Forced Distribution Rating Systems (commonly referred to, incorrectly, as Stack Ranking Models) are intended first and foremost to identify the top performers and keep moving them up the company. Secondarily, it helps "trim the fat". People focus most on the latter, but the main draw is the former. It also is meant as a way to keep raters accountable for the performance management process and avoid rating errors, most obviously the leniency bias but also the halo bias. Finally, in some organizations it's just a convenient way to distribute rewards (comp, promotions). While this is a highlight of it in any application, the focus on that as the primary benefit is less than ideal. But convenience is its own reward for many. This concept is intended for use at the more senior levels in the company and typically not meant to be done within teams/groups/divisions, but rather across teams/groups/divisions. The whole system is designed around creating a workforce with maximum potential, if not maximum performance. There are some simulation studies that have borne this out, but I'm wary of trusting the validity of simulated models in complex systems and social phenomenon. While evidence suggests neither raters or ratees react well to the system, actual evidence of behavior (e.g., attrition) and performance generally don't show the expected negative outcomes. It's thought level of interdependence in one's role would be positively associated with poor performance, but I don't know of any evidence about this either way. It's also thought that the system works best in a culture that sends similar signals, like high-performance consulting cultures. Again, I know of no data about this. Here is a decent, if somewhat old, PDF that is classic forced distribution reading. I don't think it's perfect, but it's a good starting spot: http://www.groteconsulting.com/resources/pdfs/Across_the_Board-Forced_Ranking-Behind_the_Scenes.pdf http://www.groteconsulting.com/resources/pdfs/Across_the_Boa... I have more research about this handy on my work desk I can post tomorrow if anyone is interested.