What is a danger of a ranking system like the General Electric three-tier 20-70-10 ranking system?
A) The best employee in a unit is likely to be rated as a "middle" performer.
B) Most employees are rated as good regardless of their performance.
C) Employees might conclude that trying to perform the best is pointless.
D) A very good employee could be rated "lowest" or "worst" performer.

Question

Quizplus · Accepted Answer

The General Electric three-tier 20-70-10 ranking system forces managers to categorize their employees into top 20%, middle 70%, and bottom 10%. This means that even very good employees could find themselves in the bottom 10% if the overall performance level of the team is high, leading to them being rated as the "lowest" or "worst" performers.

What Is a Danger of a Ranking System Like the General