What is meaning of a bell curve in a performance appraisal?

✳ Why companies hang on to bell curve-based performance appraisal system ?

✳ Does human performance follow the bell curve?

“In Bell Curve , we will have a small number of very high performers and an equivalent number of very low performers with the bulk of our people clustered near the average.

If you use a five point scale (similar to grades), many companies say that “no more than 10% of the population gets a rating of 1″ and “10% of the population must be rated a 5.”

Much research shows that reducing a year of work to a single number is degrading. It creates a defensive reaction and doesn’t encourage people to improve. Ideally performance evaluation should be “continuous” and focus on “always being able to improve.”

In the bell curve there are a large number of people rated 2, 3, and 4. These people are either (A) frustrated high performers who want to improve, or (B) mid-level performers who are happy to stay where they are. If you fall into category (B) you’re probably pretty happy keeping the status quo.”

▶️ Excerpts From : https://lnkd.in/fAH4qaY, By Josh Bersin


​Not a member-scholar yet? Join our financial community here!

Identify your path to CFO success by taking our CFO Readiness Assessmentᵀᴹ.

For the most up to date and relevant accounting, finance, treasury and leadership headlines all in one place subscribe to The Balanced Digest.

Follow us on Linkedin, Facebook, Twitter.