Expert Perspective by Grahall’s OmniMedia Editorial Board
In her MARCH 10, 2010 article for the Wall Street Journal (AIG’s Rankings Will Weigh on Pay) author Serena Ng says: “American International Group Inc. is basing its upcoming round of bonuses and incentive pay on its new “forced ranking” system that measures the performances of about 10,000 employees… to demonstrate to the public and the government that AIG is paying employees for their performance and not just for staying at the company.”
As US taxpayers and therefore part owners for the company, we hope AIG has carefully thought this through. Forced ranking systems are not “plug and play” type tools. The success of this methodology is highly dependent on how it is implemented. And when implemented improperly, it can create or exacerbate human resource problems. AIG has a boat load of those problems in that arena.
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