The upshot is that a system that depends on relative evaluations is appropriate only if an organization cares about relative performance. For example, relative ratings might make sense when, regardless of people’s absolute performance, only a fixed percentage of them can be promoted—think of colonels being evaluated for promotion to general. But forcing a relative ranking on what purports to measure an absolute level of performance, as many companies do, is illogical. And mandating that a set percentage of employees be rated as failing to meet (absolute) expectations is not just cruel; it is
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