Dear all,
If we go by the true definition of performance appraisal - it says that Performance appraisal is an absolute evaluation of somebody's performance and i am conviced with this definition.
But I am not convinced with the fact that we shd link the outcome of the appraisal to the bell curve formation at Org level because in that case we would definitely have some case wherein a person is a good performer but gets the low rating because of the % distribution of bell curve.
I wanted to have seniors view on this topic becoz it directly hits the emp morale and motivation....hence my question is TO WHAT EXTENT IT IS GOOD TO HAVE A PERFORMANCE MANAGEMENT SYSTEM LINKED TO BELL CURVE and the final compensation Shdnt we have 2 mechanisms in place, one for appraising the emploee and one for relative ranking based on appraisal rating and other important parameters...Kindly help

From India, Delhi
Managing Director
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Hello Shilpa. You have highlighted two divergent ways of appraising employees:
1. Criterion referenced – based on objective, observable results.
2. Norm referenced – based on employee’s performance relative to peers.
Both systems suit specific circumstances and organizational objectives. You need to think first about what you want from your performance management system and then to work backwards from there. I must say that allocating rewards for good performance does not necessarily depend on norming to a bell curve. Many companies divide rewards up based on objective performance criteria.
You can find out more about employee performance appraisal systems at
I hope this helps.
Les Allan
Business Performance P/L - HR and Training Tools

From Australia, Glen Waverley

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