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.”
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