Forced ranking systems became popular among major companies in the 1980s. However, researchers discovered that, in the long term, forced ranking systems damage morale, deter teamwork, and stifle innovation. As a result, companies have replaced formalized ranking systems with two alternative performance appraisal methods: ongoing feedback/coaching and objectives setting. These two methods hold their own benefits in addressing the negative consequences of forced rankings. However, these methods also produce drawbacks. A full understanding of each is important to decide whether or not they are worthwhile replacements for a company.