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What do we know about the forced distribution system: a systematic literature review and opportunities for future research

Author

Listed:
  • Aniek Wijayanti

    (Universitas Gadjah Mada
    Universitas Pembangunan Nasional Veteran Jakarta)

  • Mahfud Sholihin

    (Universitas Gadjah Mada)

  • Ertambang Nahartyo

    (Universitas Gadjah Mada)

  • Supriyadi

    (Universitas Gadjah Mada)

Abstract

This research aims to systematically review the forced distribution system (FDS) literature to provide an in-depth analysis of existing research and formulate future research directions. The review and analysis encompass the quality of the publications, the theories, methods, research settings, main research topics, research direction recommendations, and managerial implications. Articles were collected from the Scopus database, with no time period restrictions. Article selection was conducted following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) procedure. A total of 41 research articles published from 1960 to 2022 were obtained and reviewed. The review results indicate that the FDS literature places significant emphasis on the topic of ratee reactions. A noteworthy finding is that differentiation within FDS elicits positive reactions that enhance performance, but serious issues related to perceptions of injustice result in various counterproductive actions. Organizational justice concepts and theories are frequently used to explain the diversity of the reactions that emerge. The United States (US) is the most commonly chosen research setting due to the popularity of FDS in that country. Future FDS research directions are recommended to primarily focus on efforts to sustain performance improvements. Various managerial implications resulting from FDS are also discussed in this review.

Suggested Citation

  • Aniek Wijayanti & Mahfud Sholihin & Ertambang Nahartyo & Supriyadi, 2025. "What do we know about the forced distribution system: a systematic literature review and opportunities for future research," Management Review Quarterly, Springer, vol. 75(1), pages 747-788, February.
    • Handle: RePEc:spr:manrev:v:75:y:2025:i:1:d:10.1007_s11301-023-00396-8
    DOI: 10.1007/s11301-023-00396-8
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    Keywords

    Forced distribution system; Ranking system; Rank and yank; Relative performance appraisal; Systematic literature review;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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