LAWSUITS AND LIABILITIES

Ford, Conoco, and Microsoft all face suits files by workers who allege that their companies' forced-ranking program discriminates against them. The case against Ford claims that older workers were disproportionately placed in the bottom tier of the ranking system. Begun in January 2000, Ford's process initially required that at least 10 percent of the managers and supervisory-level employees measured by the program be palced in the lowest category. In July 2001, Ford bowed to the complaints and changed the process. The class action lawsuit against the company continues, as do suits filed by workers against Conoco and Microsoft.

Conoco employees who filed suit alleged that the forced-ranking process discriminates against U.S. workers, whose colleagues in the company's European operations fared considerably better. And, the suit against Microsoft claims bias against African American workers.

Despite much media attention about forced ranking and the lawsuits, labor attorneys say the process is legal and can be effective if employers implement it properly and strive to ensure fairness in its application. To achieve this, they say, employers should take such steps as these:

• Inform all affected workers that the policy will be used.
• Explain why the forced-ranking process will be used - e.g., its objectives and the expectations of the job performance that are to be measured.
• Involve employees in the setting of job performance goals and measurements.
• Provide regular and ongoing feedback on employees' job performance.
• Document evidence for ranking by highlighting, for example, attendance, written warnings, commendations, complaints, sales figures, or other production measurements.
• Continuously monitor performance results across the department to shed light on whether rankings based on age, ethnicity, gender, or other attributes, are affecting any group disproportionately.