Understanding the Bell Curve in Performance Appraisals: How Do You Calculate and Apply It?

Dear Seniors,

I need to know about the calculations done while doing Performance Appraisal using the Bell Curve Method.
- What formulas do we apply to complete the Bell curve?
- How is the distribution of salary done?
- What is the methodology to do the calculation and then merge it with each individual's salary?

If you have any xls./document ready with you, please do share it with me. Please help and revert at the earliest.

First of all, decide on what your organization's annual increment rate is (let's say x). Define evaluation units. Also, define the percentage of employee distribution in the bell curve fitment, such as 5%, 10%, 70%, 10%, 5%. Allocate the annual increment percentage to each defined evaluation unit (i.e., the number of employees in that evaluation unit multiplied by x). Depending on the employee's performance, increments should be given.

It will be the responsibility of the HR department to determine how the bell curve will look, by aggregating all the scores into one worksheet. The curve can follow a normal distribution or be skewed to one side.

Regards,
Phuntshok

Dear Phuntshok,

Thank you for your email. I understand this theory; however, if you have a template ready, please do share it with me. It'll be a great help.

Thank you.

Dear Team,

Please let me know if it is applicable based on the entire year's performance and what benchmark is used for counting.

Regards,
Raj