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Bell curve for performance appraisal

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explore some advantages and disadvantages of using a bell curve for performance appraisal from the perspective of an organization.

Bell curve for performance appraisal

  1. 1. Use of Bell Curve for Performance Appraisal – Good or Bad ?
  2. 2. Copyright 2013 | Saigun Technologies Pvt. Ltd. 2 The use of bell curve or forced ranking has always been a topic of debate among HR professionals. A Bell Curve Controversy
  3. 3. Copyright 2013 | Saigun Technologies Pvt. Ltd. 3 A bell curve model is a systematic bell shaped graph that is pronounced in the middle and tapered off at the edges. It assumes that all the employees in a company can be divided into groups such as: Top 20% – High performers Middle 70% - Average Performers Last 10%- non performers What is Bell Curve ?
  4. 4. Copyright 2013 | Saigun Technologies Pvt. Ltd. 4 Because a bell curve forces employees of a company to be divided into groups, it is called the forced ranking system of appraisal. Some HR professionals believe that a bell curve is the best way to identify the top performers and under performers whereas others believe that it compels the rater to a forced ratings instead of a fair one. However, the truth lies somewhere in between. Let us explore some advantages and disadvantages of using a bell curve for performance appraisal from the perspective of an organization. The Overview of Bell Curve
  5. 5. Copyright 2013 | Saigun Technologies Pvt. Ltd. 5 Identify top performers: It is very importantfor an organization to identify its high performers and reward them accordingly.The forced ranking compels managersto take decisionsand differentiate between the performance of differentkinds ofemployees. Manage lenientand strict ratings of managers:Bellcurve is perhaps the only method thatcan be used by the organizationsto manage leniencyand strictness ofratings by the managers. Identify suitability of employeesin a job position: Often an employee may be more suited in anotherposition in the company.The forced rankingwith adequate analysiscan identify other positions foremployees in the company. Manage trainingneeds: The bell curve can help identify the most suitable trainings applicableto differentcategoryof employees. The Advantages of Bell Curve
  6. 6. Copyright 2013 | Saigun Technologies Pvt. Ltd. 6 Too Rigid: Using bell curve model for performance appraisal may be considered a rigid approach for rating employees. Loss of morale: The appraisals based on the forced ratings create doubts in the mind of employees and managers about the possibility of an exit during tough job market conditions. Not suitable for small companies: The bell curve is not suitable to be used in small companies where the number of employees are less than 300. It may give erroneous results. The Disadvantages of Bell Curve
  7. 7. Copyright 2013 | Saigun Technologies Pvt. Ltd. 7 While there is an ongoing debate on the bell-curve based normalization methodology, a 360 feedback additionally may help put some of these doubts at rest. EmpXtrack Appraisal dashboards allow you to view the desired as well as the actual performance of employees through a bell curve. You can normalize the bell curve for performance appraisals, if required or simply use it to view the performance gaps of employees. Conclusion
  8. 8. http://www.empxtrack.com Copyright 2013 | Saigun Technologies Pvt. Ltd.

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