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Bell curve appraisal system is a forced ranking system imposed on the employees by the management. It categorizes people based on their performance, and rewards or penalizes the employees accordingly.
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Bell Curve Performance Appraisal Management System Brief Summary and Sample
Presentation flow • 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
Definition of Bell curve Characteristics of the Bell curve Only one mode Mean located in center Predictable standard deviation Follows symmetry
Bell Curve in Performance Appraisal Management System Employees are divide into top performer, average performer and poor performer Identify the caliber of employee Link performance to rewards
Bell curve appraisal system process 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.
How to use bell curve appraisal system • 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
Advantages & Disadvantages of bell curve based PA System 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
Bell curve in performance appraisal example Companies like Wipro, Infosys, ICICI Bank and Aditya Birla Group are using the bell curve appraisal system 75% to 80% companies in India are currently using bell curve for the performance appraisal Every employee will be happy if the performance is directly linked with the rewards