Forced Distribution Clause Samples

The Forced Distribution clause establishes a requirement for evaluating or ranking individuals, teams, or entities according to a predetermined distribution curve. In practice, this often means that only a certain percentage of participants can receive top ratings, while others must be assigned to lower performance categories, regardless of their absolute performance. This clause is primarily used to prevent rating inflation and to ensure differentiation among evaluated parties, thereby promoting a competitive environment and more objective performance assessments.