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Literature is replete with studies of performance appraisal systems used in Engineering Technology (ET) personnel reviews and those studies conclude that the performance appraisal systems are not above reproach, and that there are inherent problems with any performance appraisal system. A further review of literature uncovered a number of alternatives for the potential problems associated with the performance appraisal systems for technical managers, and their lack of effectiveness. For this research study, the inherent problems of performance appraisals using forced ranking system was investigated and the adverse effects of forced ranking of technical managers was examined. In many organizations peers, employees and managers have begun to experience the adverse effects of the use or misuse of forced ranking. Without warning, employees experience feelings of loss, grief and resentment for receiving the brand or label of a poor performer. Certainly, there is a need to analyze and identify employees that require encouragement to become more productive, but a company should refrain from creating an atmosphere of fear causing its staff to question their reason for continued employment. This research was designed to determine the effect of forced ranking system (FRS) on employee performance and productivity. It is hypothesized that performance and productivity are negatively affected by a forced ranking system of performance appraisal. The null hypothesis is 2 1 : μ μ = o H . The alternate hypothesis is 2 1 1 : μ μ ≠ H . (control group = 1 and experimental group =2.) The hypothesis will be tested by the responses of a sample of respondents from business and industry.

Outcomes Based Performance Appraisal Of Et Managers Using Forced Ranking System