What is one major disadvantage of a forced ranking system in performance appraisals?

One significant disadvantage of a forced ranking system in performance appraisals is that it can create an atmosphere of intense competition among employees, which may undermine teamwork and collaboration. In such a system, employees are often pitted against one another, as they must be ranked relative to their peers. This competitive environment can lead to feelings of animosity or distrust among colleagues, as employees may prioritize individual success over the overall success of the team or organization.

When individuals focus solely on outperforming their coworkers, it can discourage sharing ideas, helping one another, and working towards common goals. This reduction in teamwork can ultimately harm the workplace culture and negatively impact productivity, as collaboration is often essential for innovation and achieving organizational objectives. Therefore, while forced ranking may provide a way to differentiate performance levels, it can have detrimental effects on employee morale and organizational cohesion.