Forced distribution is a rule requiring that ratings across a team or organisation fit a predetermined shape - for example, only a fixed percentage can receive the top rating - rather than letting ratings fall wherever individual assessments land.
What it means
The intent is to counter rating inflation, where almost everyone ends up rated "above average" if left unconstrained, but forced distribution is also controversial: it can produce a "good" rating for someone simply because the curve required one less top rating elsewhere.
Where it fits in
Where forced distribution applies, calibration is the mechanism that actually fits the raw ratings to the required shape, and the final distribution typically constrains how the merit increase budget can be allocated across the team.
Key rules
- Forces ratings to fit a predetermined distribution, often a bell curve.
- Intended to counter rating inflation across managers.
- Controversial - can distort an individual rating to fit the curve.
- Enforced through calibration and constrains merit increase allocation.
