FORCED RANKING GOES WRONG: EXAMINING THE DISASTROUS EFFECTS OF VITALITY CURVES
Keywords:
performance management, vitality curve, team performance, employee performance, performance evaluations, rank-order evaluations, forced ranking, teamwork, employee moraleAbstract
General Electric’s Jack Welch introduced the 20-70-10 rule, also known as the vitality curve, which
has become a widely used employee performance management technique. However, it has faced criticism for
its negative effects on teamwork and the lack of correlation between individual employee ratings and team
performance. This study explores the possibility of extending the vitality curve to team performance
management and addressing the criticisms of the vitality curve. The study surveyed over 1,600 teams with
over 110,000 employees using questionnaires and divided the employees into three groups (Red, Amber, and
Green) within each team, similar to the vitality curve. The results showed that 40% of the teams had
predominantly green employees, 40% had mostly amber employees, and 20% had a large contingent of red
employees. The study concludes that it is essential to evaluate teams separately to improve performance
management
