This document provides an overview of the bell curve performance appraisal system. It defines the bell curve and describes how it is used to divide employees into top, average, and poor performers based on a forced ranking distribution. The advantages include easily identifying top performers and managing lenient/strict manager ratings. However, disadvantages are that the system is rigid and can damage employee morale, especially in small companies. Most large Indian companies use bell curves to link employee performance to rewards.

1. Brief Summary and Sample

2.  Definition of Bell curve
 Bell Curve in Performance Appraisal Management
System
 Bell curve appraisal system process
 How to use bell curve appraisal system
 Advantages & Disadvantages of bell curve in
performance management
 Bell curve in performance appraisal example

3. Mean
located in
center
Follows
symmetry
Only one
mode
Predictable standard
deviation
Characteristics
of the
Bell curve

4. Employees are divide
into top performer,
average performer
and poor performer
Identify the caliber of
employee
Link performance to
rewards

5. The pattern
should be followed
Ranking should be
restricted
Standards have to
be set
The pattern of the
performance is
identified and force
ranking is followed.
The ranking is
carefully done in
order to balance
employee
performance on
bell curve.
The standard
performance is
defined in order to
identify the star
performer.

6. The employees are divided
into 3 categories based on
the relative performance
ranking across bell curve.
Top 20% – High
performers Middle 70% –
Average performer
Bottom 10% – Non
performers

7. Advantages
 Top performers can be
identified easily
 Strict and lenient ratings
of manager can be
managed
 suitability of employees
for job position can be
identified
 Training needs can be
managed
Disadvantages
 The system is to rigid
 Loss of morale
 It is not suitable for
small companies

8. 75% to 80% companies
in India are currently
using bell curve for the
performance appraisal
Companies like Wipro,
Infosys, ICICI Bank and
Aditya Birla Group are
using the bell curve
appraisal system
Every employee will
be happy if the
performance is
directly linked with
the rewards

9. Thank You