Abstract   The forced distribution rating system (FDRS) is frequently used to appraise an employee's performance. The purpose of this paper is to synthesize theory and empirical research to present an integrative model for understanding the potential benefits and risks of a FDRS on the three components of job performance: task, citizenship, and counterproductive performance. A FDRS may lead to higher task performance in the relatively short-term, as it initially motivates effort as well as helps attract and retain top talent. Caution is in order, however, as a FDRS may also lead to lower citizenship performance and higher counterproductive performance through injustice perceptions and dysfunctional competition. Over time, the risks of a FDRS on job performance may increasingly outweigh initial benefits, particularly under certain task (interdependence) and group (cultural) characteristics. Implications of a FDRS for human resource management research and practice are discussed.