Eddie was surprised to learn that not everyone would receive a bonus this year. Instead, management planned to rank all of the employees in Eddie's division and award bonuses only to the top 20 percent in terms of sales. Eddie's company is using a (n)

Question

Lucia Valentine

Business

30 August, 15:20

Eddie was surprised to learn that not everyone would receive a bonus this year. Instead, management planned to rank all of the employees in Eddie's division and award bonuses only to the top 20 percent in terms of sales. Eddie's company is using a (n)

+1

Answers (1)

Know the Answer?

Vance Mendoza · Answer 1

In a situation in which:

Eddie was surprised to learn that not everyone would receive a bonus this year. Instead, management planned to rank all of the employees in Eddie's division and award bonuses only to the top 20 percent in terms of sales. Eddie's company is using a:

Forced ranking

Explanation:

Forced ranking is a tool in management that allows the company to let know its workers the performance they have achieved in a certain period comparing the companies expectations and their actual performance. It is controversial because it lets all the society know the performance. However, it is also very effective because it allows workers to improve their performance to receive a bonus/reward.