Questions: Eddie was surprised to learn that not everyone would receive a bonus this year. Instead, management planned to rank all of the employees in Eddie's division and award bonuses only to the top 20 percent in terms of sales. Eddie's company is using a( n ) performance review system. unit grading 360-degree developmental forced ranking

The answer is: forced ranking performance review system.

Explanation for each option:

1. Unit grading: This term typically refers to a grading system used in educational settings where students are graded based on their performance relative to a set standard or unit. It is not commonly used in the context of employee performance reviews.

2. 360-degree: A 360-degree performance review system involves collecting feedback about an employee from various sources, including peers, subordinates, supervisors, and sometimes even customers. This system is comprehensive but does not inherently involve ranking employees against each other.

3. Developmental: A developmental performance review system focuses on the growth and development of the employee. It aims to identify areas for improvement and provide opportunities for professional development. This system is more about personal growth than ranking employees.

4. Forced ranking: In a forced ranking performance review system, employees are ranked against each other, and only a certain percentage (in this case, the top 20 percent) receive rewards such as bonuses. This system is designed to identify and reward top performers while encouraging competition among employees.

Therefore, the correct answer is "forced ranking" because Eddie's company is ranking employees and awarding bonuses only to the top 20 percent based on their sales performance.