Contents

• Introduction 2
• Red Square Industries --- Five-Level Performance Appraisal System 3
• Forced Ranking Distribution 3
• Five Level Performance Appraisals 4
• Advantages of Forced Ranking Distribution Five Level Appraisal System 4
• Disadvantages of Forced Ranking Distribution Five Level Appraisal System 6
• Validity of the Forced Ranking Distribution Five Level Appraisal System 9
• Suggestions to Improve the System 10
• Conclusion 11
• References 12

Description

This report is aimed at analyzing the usefulness of the performance appraisal system in currently in place in Red Square Industries. Even though performance appraisal is primarily a management responsibility due to the effects that it has on the workforce, it is now mainly being handled by the human resource team. As Red Square Industries’ HR Director, I discuss the various advantages of disadvantages of the five-level performance appraisal system from a human resource management point of view. In order to do so, first the performance appraisal process adopted the organization is briefed. Based on the advantages and disadvantages, and research conducted the current system’s validity is analyzed and the report is concluded with recommendations to improve the performance appraisal process.