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General Electric Company's former CEO Jack Welch was among the most vocal and articulate advocates of performance management systems that force turnover of the lowest-performing

  1. General Electric Company's former CEO Jack Welch was among the most vocal and articulate advocates of performance management systems that force turnover of the lowest-performing employees each year. At GE, it was the bottom 10 percent of employees who were supposed to be eliminated. Mr. Welch felt so strongly about this practice that he highlighted it in a letter to GE shareholders and advocated it again in his bookJack: Straight from the Gut. In addition to arguing that a forced ranking or distribution system is good for organizations, he reasoned that it is good for individuals because it takes people who are failing out of situations that are bad for them and the company.
    1. Describe the forced distribution approach to performance management? Use an example to clarify your description.
    2. Do you agree with Jack's approach i.e., using a forced distribution approach to performance management?
    3. What are the advantages to this approach? The drawbacks? Be sure to go beyond those covered in our performance management module.

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