Differentiating may be difficult

Simply stated, differentiation is the process by which managers assess team members to provide them with appropriate growth and job enrichment opportunities. It's important to keep in mind that differentiation is not the process by which you pass judgment on which of your employees are the "best" (or "worst").

Still, differentiation is difficult for many managers. For some, assigning relative values to otherwise well-performing employees may seem unfair. In fact, studies show that most managers who are satisfied with their employees' performance want to rate them all "outstanding" or "good."