One major complaint regarding the forced distribution method of appraisal is that it:

The forced distribution method of appraisal requires managers to categorize employees into predetermined performance categories, often resulting in a set percentage of employees being classified as low performers, average, and high performers. One major complaint about this system is that it can damage employee morale.

When employees know that their evaluations are influenced by this arbitrary distribution, it creates a competitive rather than a collaborative environment. High-performing employees may feel undervalued, knowing that despite their contributions, they can only receive a certain rating due to the limits imposed by the method. Likewise, employees who genuinely perform well may be placed in lower categories due to the forced distribution, which can lead to frustration and disengagement.

Additionally, this method may discourage teamwork because employees become more focused on competing against their peers rather than collaborating for mutual success. Overall, the forced distribution can lead to a workforce that feels demotivated and undervalued, undermining the overall objectives of performance management and development.