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Roulette
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Aparna Nair
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Thread Started by #lizancy

Hi!
Please advice which is the best method of Performance Appraisal for an organisation of 200 employees currently we are using MBO but we have plans to shift o Bell curve.
So please advice which is the best tool for PMS as per the tools used in your organisations.
Thanking you
Liz
28th May 2008 From Australia, Adelaide
Yes please, I too am interested in understanding the process and application of the bell curve method of perfomance appriasal.
28th May 2008 From India, Pune
Hi Liz,
Please refer to my post on Bell Curve, follow the link and download the documents.
https://www.citehr.com/88087-force-r...ell-curve.html
Post 4
Any further doubt do post.
Regards,
AJ
28th May 2008 From India, Thana
Dear AJ
I have already refered to your posts but my query is how do you do it in any organisation... theoritically I know but how to do it practically where there is almost 200 employees comprising of the following
HR Department
Finance and Accounts
Sales
Marketing
Credit Control
Sales Administration
and the other Administrative Staffs
Please give a sample format on how to do the questionnaire, how to allot marks and the how to do the bell curve in excel if you have formats examples etc only examples no theories please...
If possible upload here or email to me at
Thanking you
Liz
28th May 2008 From Australia, Adelaide
Dear Liz

There is no theory here!!

MBO or Management by Objective is all about setting goals/KRAs/KPAs/Assigning percentages. It is more about target setting. It is actually a process before appraisal is done. One can use MBO or simple target setting or Balanced Score Card method.

Example from an organisation where I used BSC

A General Managers KRAs for a particular year based on BSC

1.Volume of Business 50%( for that year it was considered crucial)
2.Profitability 10% ( Growth was considered more crucial than profits)
3.Systems 30% (It was considered much more important than profit as in Growth mode, systems are critical for future)
4 Training 10%

This is how practically we assigned targets and standards to the Top Team.

Having done this, at the year end it was easy to assess the individual against these standards and in this case this particular individual got a score of 85.

MBO or Balanced Score Card stop with this.

Bell curve starts here. We had all GMs falling under the rating between 85 and 90 based on this scale. The theory of Bell Curve is uniform distribution.
The Top Management sat on this and categorised these individuals into A B C based on certain parameters.

How do you go about on this is your question.

At the outset it will appear all these General Managers were excellent ads they have scored more than 85

Now rank them

First rank was 90 second was 88 third was 87 and the rating A goes to 90 B goes to 87 and C goes to 87.

Well, the point I was trying to highlight here from this real example was that MBO is different and it helps in setting targets and Bell curve is different as it helps in making finer distinctions.

One is critical in pre appraisal stage and the other is critical in post appraisal stage

Siva
29th May 2008 From India, Chennai
Dear Liza
I have worked on Balanced DScore card for individual KRAs I do have some But ethically I can not share. I will send the BSC after making some modifications and Individual KRAs for that year to your emaill id
I do not have any data wi9th me right now whatever I did on Bell CurveI personally did for 300 employees. But you can check with Murugappa Group of Companies They have been following this for so many years. In fact I learned this there when I was working there 20 years back
They have improvised and have a good system. TCS has reasonably good Bell Curve technique.
Siva
29th May 2008 From India, Chennai
Dear AJ or Siva
I was trying to figure out how to do the bell curve in a chart since the results we get may be based on grades or figures but is it must that it should look like a bell curve.
More over inorder to get it as a proper bell curve do we have to derive the mean and the standard deviations ...
If so can you please clarify it.
In one thread I read that it is 20% - 70% -20% for the bell curve and then the results we are just putting it inside the bell curve so that it looks like a bell curve..
Please advice
Thanking you all in advance
Liz
30th May 2008 From Australia, Adelaide
Hi Liz,

I am glad you are almost through with your project.

Bell Curve is a percentage wise calculation.

Hence the post you read where in its 10% (Superior Performers), 70% (Average Performers) and 20% (Non Performers). Wherein the 70% can be considered the assets and the 20% Liabilities.

Now for calculation of the Bell Curve you will need the Average(mean), Standard deviation of the original data and you will need the lower limit and the upper limit.

To fill in the formulaes and the values please refer the word document attached previously by me, its a help by microsoft to create a bell curve and instead of creating random numbers use the data that you already have. Insert the formulaes mentioned as in the document and you will have your bell curve since in the formulae we have opted for three deviations and hence its sure to form a bell curve.

(Please note individual values has to be inserted so as to determine where the personnel is placed). The chart is more for demonstration purpose and to see how well the company has improved keeping in reference to your first bell curve, you can determine individual performances by the data itself.

Regards,

AJ
30th May 2008 From India, Thana
Dear AJ and Siva
I tried follow the instructions you have mentioned how to create bell curve and in my PC there is no excel add-ins.
But in vain...Can you please explain if the parameters are as follows
5% Outstanding
20% Very Good
50% Good
20% Fair
5% Poor
And the scores are as follows in performance appraisal for 10 employees
50
45
60
44
40
60
65
50
56
70
The Standard deviation =10
mean = 20
Now how to go about the rest ???? also to draw the Bell curve
which is the x axis and y axis
Is it possible as Siva said to ascertain the individual percentages based on the KRA score per employee for eg. if 85% then simply plot it in the chart...
Even if its the case how draw the bell curve?
Thanking you in anticipation
Warm regards
Liz
2nd June 2008 From Australia, Adelaide
Hi Liz & AJ,
Very good exchange. AJ, it was refreshing to read your suggestions. Practical and scientific.
Bell curve is very good to adopt as it helps to categorise acc to ratings as mentioned by AJ. In some cases though, it tends to overlook/generalise specific individual achievements. This is not a negative point. Just that its important to know the objective of using the Bell curve and not to use it to just label an employee at a certain rank. Its quite common that Line Managers remember and refer Bell Curve ratings and at times overlook individual capabilities/talents which he/she can exploit in a particular project. It will be fruitful to brief managers on this aspect at the time of a Bell Curve awareness program.
Hope this helps.
Cheers & best wishes,
Saurav
2nd June 2008 From United States
Dear Liza
I have tried to work out your details in xl sheet
I have also shown the graph as it is then applied the Uniform distribution logic to make a bell curve
This may be of some help to you to start with It is easy to work on small n umbers in xl sheet For larger organisation with 10000 employees you need proper tools Minitab or other statistical tools are available. Latest HR Pacakages also carry these tools
Please see whether this is is of some use to you
Siva
3rd June 2008 From India, Chennai

Attached Files
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File Type: xls Bell Curve.xls (31.0 KB, 2049 views)

Hi AJ and SIva,
Thanks for the awareness you guys have created for freshers like us. Now i am able to understand that organization follow MBO / BSC and Bell curve for their performance appraisal. I have few queries how does a organization fix up the objectives to its employees is it just based on organization objectives or any other subsidies added to it? Why do the organization follow graphic rating scale(0 to 10) and why not any other performance appraisal methods? Just please explain me with example so that will help me to connect to real situation. Hope to hear from you soon.
Thanks,
AJITHAA HASAN
3rd June 2008 From India, Madras
Leaders, Some information on.. Bell Curve 360 Degree Appraisal Balance Score Card Performance Appraisal Handbook Hope this is helpful in some or the other ways :) regards - r o u l e t t e
4th June 2008 From India, Mumbai

Attached Files
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File Type: pdf 360 degrees assessment.pdf (302.6 KB, 844 views)
File Type: pdf Balance score card.pdf (85.8 KB, 885 views)
File Type: pdf The_Performance_Appraisal_Handbook_Legal___Practical_Rules_for_Managers_.pdf (1.14 MB, 946 views)
File Type: ppt BELL CURVE.ppt (128.5 KB, 1414 views)

MBO and bell curve are two separate issues. Use MBO to decide goals and measure performance against them. Then measure performance as meets expectations, exceeds expectations etc.

Bell curve is forced normalisation to redo the ratings of the people, and can be done on the basis of the MBO ratings. The number crunching part is easy, but do not agree with the bell curve in principle.

Any statistical measure requires large samples and careful analysis of variances, of significance of differences. In bell curve applied to PMS, you require all this and also require rational system of goal setting and objective appraisal. With due respect these conditions are rarely present in realily.

Bell curves can be demotivating and frustrating. If there are three people and they have achieved 105%, 110% and 115% of their respective targets, just to suit some HR manager's "system", the first fellow will be labled as C. The fellow will either quit or will not perform in the next cycle due to demotivation. If he quits, HR guys are happy because he was a low performer any ways, despite the fact that he exceeded your targets.

Dont go blindly into something. Understand what you are doing and the implications of it.

Hope this helps.


Regards,

Rajendra D. Aphale
B. Tech., MMS, AICWA, LL.B.
For Holistic Business Transformation
+91-98690 71521

Skype : rajendra.aphale
Linkedin : http://www.linkedin.com/in/rajendraaphale
6th June 2008
Dear Liz,
Have you ever tried a mix of competency based performance appriasal and the normal technical performance appraisal or MBO in the Hr lingo. Today most HR's are shifting to Competency based appraisals , as this gives the employee the oppurtunity to :
1. Understand where he currently stands
2. Understand where he needs to improve to get better appraised
Thus from an organization context you will see a dramatic rise in performance, and employees will feel a sense of belonging to the orgaization.
I will send you a mail on the system we deploy for our clients !!
Regards,
Ajay Venkatesh
6th June 2008 From United States, Iowa City
Hi..
can smbody please help me knw details about the induction that is happening in wipro, satyam and IBM??? its so very urgent.....cos these are very vital inputs for my project titled "training benchmarking"
if anybody out there could kindly help me please let me know, my ids are:




thanks
Regards
Aparna Nair
6th June 2008 From India, Thiruvananthapuram
As per Bell Curve only 10% are the Excellent Performers, 35% are Good Performers and 45%-Average Performers and balance 10% are poor performers. So If in a Dept suppose 10 People are there 1 - Excellent Performer 3 - Good Performer, 5 - Average performer and 1 - Poor performer...the curve would show automatically...you can have mbo and bell curve both to arrive at PMS.....we use both........
10th June 2008 From United Kingdom
Hi Liz,
Bell curve, you can use it department and overall company wise example you are rating employees as Excellent, very good, good, average & poor, in these category you can do the bell curve like Excellent category only 10%, Very good- 20%, Good-50% Average - 15% and poor - 5%. This can be consolidated section, dept and company level. Rewards like bonus and increment may be linked to the merit rating.
Best regards,
Ashraf
19th June 2008
Hello Aj,
I was going thru ur posts........They are very interesting and informative indeed. Thanks for such wonderful posts.
But I am having some difficulty in understanding as to how I would create the Bell Curve Chart in Excel.
It would be good if you could just explain to me abt the statistical logic running at the background of it.
Thanks and regards,
AYona
19th June 2008 From India, Delhi
Hi,

Importance:
It is one of the best practice internationally
You can plan & control MP Cost as you will know %
High potential people are motivated through better reward
Clearly differentiate who is achieving target and exceeding target

Implication:
Employee - Motivated - Highly skiiled people who produce result get high reward Employee- Demotivated: % limiting the no. of people in each category and therefore with little difference in performance, employees are differenciated and appraised
In my experience, most of the employees are demotivated and complained about the bell curve

Managers: They are in a fix, to differentiate the level, especially if the team in small in nos. They are forced to do that and end up argument with employee and blam HR
Benefit: Managers can compare performance of each staff with evidence of achievements
HR: Role is very critical as you have to comply the policy and the same time you receive the appraisal with lot of variations.
A clear communication through meeting with LM will reduce our burden
Management: Control on cost, High rewards to limited no. of people, A clear policy on performance appraisal; Fair appraisal will reduce subjectivity

Best wishes,

Ashraf
9th July 2008
Hi
I have some difference of opinion here with Ashraf
Bell curve has no bearing on cost control
It was not designed for that purpose It is based on the priciple that the world is uniformly distributed with people
Take physical beauty or IQ or Strebgth and whatever you call, there is uniform distribution If thuis is true then performance managment will also fall in to this theory Probabaly Bell Curve is highly criticised tool Performance management.But is there any other tool to make distinction between categories of performers
I think it gives reasonable justification when we distinguish people Cost is not exactly controlled thru this tool
Siva
9th July 2008 From India, Chennai
Dear Shiva Hi I am Pankhuri Senior HR _Exe in HDFC new to this forum can you guide me in HI-POD analysis and other features in it Regards Pankhuri Tandon
8th August 2008 From India, Mumbai
Could you clarify a doubt.....before the normalisation process...the individual ratings or scores are awarded to employees depending on various parameters, judged b y their seniors / supervisors. During this process how is it possible to ensure that the rating provided across departments is uniform. How can we determined if the awarded rating is the actual worth of the employee or due to the supervisors stingyness in awarded scores.

For eg.

Suppose there are four departments.....of which the best scores are......98, 89, 90, 75
For normalisation process these scores are considered to be at same level and processed.
But how do we ensure that the score of 75 is actually equivalent to a score of 98( may be because the head of that particular department is stingy in awarding marks and his best employee scores just a 75). Also how to determine if this score isnt actually just worth 75....that is either the employee and/or the department is an underperforming source.

I hope i could explain my query well......:huh:

thanks
pankhuri
26th January 2009 From India
Hi Pankhuri,
You do have a genuine problem, over here you might have to deal with the issue separately i.e the normalization has to be done department wise, Cause the problem with a common rating would always be the same.
Thanks & Regards,
AJ
26th January 2009 From India, Thana
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