Bell Curve Model for Performance Management

Hey All,

Could anybody explain how does the Bell Curve Model of Performance Management work. If it is followed in any of your organizations, please let me know how to implement it.

Just wanted to know how to get the cut off for the different ratings..

Please let me know where I could get some material on this.

Thanks and Regards
Aanchal

Hi Anchal,

I agree with you that the system is full of biases. I am working in a telecom company and PMS is my core area but everytime i do this force fitting i feel really guilty....

Hi!
We had a discussion on belcurve method in Performance management. But it was releated to salary distribution.
Please chk this link, hope you would find some info that helps you out :0

http://www.citehr.com/linkin-salary-...d-vt11030.html

I have worked in BPO, where this method was applied in PA.
They did the following activities.
1. They divided the entire work force into following percentage.
a) 5-8 % with rating 5 [ Top rankers- Excellent,Exceed expectation.]
b) 12-15 % with rating 4 [ next level rank- Good]
c) 70% with rating 3 [ Satisfactory performance]- Achieved expectation]
d) 10-12 % with rating 2 [ Needs improvement, have the potential to do better]
e) 5-8% with rating 1 [ Poor performance, continuously missing targets, to be put in PIP]

2. Then they divided the process according to thier sensitivity to the client into ranks. eg: If there is a process with assigning of cheques, even if the process is not a voice based one, was given the highest ranking.It was decided so because, a mistake of puting one extra zero in a cheque can create a big loss to the organization.

3. After the performance appraisal ranking was done by each individual process, they redivided the budget of every process into the ranks allocated to each process.
eg : the process assiginig cheques would have the highest budget, followed by the next process.

4. Thus they divided budget among the individual team members in each process according to thier individual rank .
eg : If the buget allocated to a process is 50 lacs,
then the top ranker with a rating of 5 will get a hike of nearly 35-40 thousand.
Again the buget for different ranks depended on the number of team member in the process.


I hope I have answered your question, If not, Please let me know.
I will surely try !

Regards
Nabomita

Hi,

Yes, i agree with Nabomita that is the way it works.

The market standards of the rating are

For "A" rating they arrive at a increment of 20%
For "B" rating it is 15%
For "C" rating it is 10%
For "D" Performance improvement plan which is a form of warning letter will be given to them.

These ratings will be arrived by the supervisor while discussing it with the subordinate.

Again here the company will have the basis that only the following percentage of the employee can be in the respective rating:
A rating - only 7%
B rating - only 25%
C rating - only 63%
D rating - only 5%

for example out of 1000 employee only 70 employees can be in A rating. if there are excee then they will be force fit in another rating. it again depends on the companys increment policy

Regards,

Sakthivel

Although our company is having a manpower of around 900 employees but till date we don't have any basic criteria for salary increment.

Can you please help me out to form the same.

Hi Sakithi,

Good Explanation, i understood the concept..Thanks u!

Thanks
Kavitha

Hi Sakthivel,

In fact yesterday only we were discussing about this method of performance management and I was asked by my Director to collect more information on this topic. I just logged in and found this informative message from your end. Thanks a lot. It is really helpful.

Thanks & regards,

Savithri