Is Linking Performance Appraisals to a Bell Curve Fair for Employee Morale?

Dear all,

If we go by the true definition of performance appraisal, it states that performance appraisal is an absolute evaluation of somebody's performance, and I am convinced by this definition. However, I am not convinced that we should link the outcome of the appraisal to the bell curve formation at the organizational level because, in that case, we would definitely have some cases where a person is a good performer but receives a low rating due to the percentage distribution of the bell curve.

I would like to hear senior's views on this topic because it directly impacts employee morale and motivation. Hence, my question is, to what extent is it good to have a performance management system linked to the bell curve and the final compensation? Shouldn't we have two mechanisms in place: one for appraising the employee and another for relative ranking based on appraisal ratings and other important parameters? Kindly help.

Regards,
Shilpa

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 http://www.businessperform.com/html/...anagement.html
I hope this helps.
Les Allan
Business Performance P/L - HR and Training Tools
http://www.businessperform.com