Bell curve for performance appraisal

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Use of Bell Curve for Performance Appraisal Good or Bad ?

description

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

Transcript of Bell curve for performance appraisal

Page 1: Bell curve for performance appraisal

Use of Bell Curve for

Performance Appraisal –

Good or Bad ?

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The use of bell curve or forced ranking has always been a topic of debate among HR professionals.

A Bell Curve Controversy

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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 ?

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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

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Identify top performers: It is very important for an organization to identify its high performers and reward them accordingly. The forced ranking compels managers to take decisions and differentiate between the performance of different kinds of employees.

Manage lenient and strict ratings of managers: Bell curve is perhaps the only method that can be used by the organizations to manage leniency and strictness of ratings by the managers.

Identify suitability of employees in a job position: Often an employee may be more suited in another position in the company. The forced ranking with adequate analysis can identify other positions for employees in the company.

Manage training needs: The bell curve can help identify the most suitable trainings applicable to different category of employees.

The Advantages of Bell Curve

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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

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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

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