PMS Using Bell Curve - CiteHR
Piyushmisra
Hr Professional
Pranati
Hr Manager

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Hi Community, :P
I'm working with a healthcare management compnay, having experience of four years.
Please give me some inputs on Performance Management System using Belll Curve. :?:
Is there is any article or PPt or book which can help me on this
Regards,
PIYUSH
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Many organizations today use a bell-curve for performance evaluation process. They reward a small percentage of top performers, encourage a large majority in the middle to improve,and lay-off the bottom performers. Companies believe that such pay-for-performance

system encourages employees to perform better. The question we explore in this paper is:does the system increase the overall performance of the company over time?We observe that pressure, if maintained below a certain level, can lead to higherperformance. However, with lay-offs, constant pressure demoralizes employees, leading to

drop in performance. As the company shrinks, the rigid distribution of bell-curve forcesmanagers to label a high performer as a mediocre. A high performer, unmotivated by suchartificial demotion, behaves like a mediocre. Further, managers begin to reward visible

performance over the actual. Finally, the erosion of social capital could cripple the company.We recommend the use of a semi-bell-curve where someone who performs like a toperformer is rewarded as one. Further, we recommend balancing pressure and morale. We

recognize that such a balance is very difficult to strike, and can be successfully achieved onlyby decoupling the issue of lay-offs from the performance evaluation process, to some extent.
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visit the following link on our website only

Many organizations today use a bell-curve for performance evaluation process. They reward a small percentage of top performers, encourage a large majority in the middle to improve,and lay-off the bottom performers. Companies believe that such pay-for-performance

system encourages employees to perform better. The question we explore in this paper is:does the system increase the overall performance of the company over time?We observe that pressure, if maintained below a certain level, can lead to higherperformance. However, with lay-offs, constant pressure demoralizes employees, leading to

drop in performance. As the company shrinks, the rigid distribution of bell-curve forcesmanagers to label a high performer as a mediocre. A high performer, unmotivated by suchartificial demotion, behaves like a mediocre. Further, managers begin to reward visible

performance over the actual. Finally, the erosion of social capital could cripple the company.We recommend the use of a semi-bell-curve where someone who performs like a toperformer is rewarded as one. Further, we recommend balancing pressure and morale. We

recognize that such a balance is very difficult to strike, and can be successfully achieved onlyby decoupling the issue of lay-offs from the performance evaluation process, to some extent.
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