Hi,
Before the implementation of the Bell Curve Appraisal System, please ensure the following:
a) Use objective parameters for the performance appraisal system.
b) Determine the reason for poor performance of the employee if there is any.
c) Let the employee take responsibility for improvement and only offer your assistance if needed.
d) Document all performance-related discussions with the employee because generally, the bell curve system attracts a lot of lawsuits by fired employees in the West. Hence, it's better to have all discussions documented for your and your company's safety.
During a discussion with a friend who used to work for ABB, the following practices followed by ABB were highlighted as an innovative solution to the bell curve appraisal system.
The primary business strategy of ABB worldwide is customer focus, achieved through Total Quality Management (TQM), time-based management, and supply management. ABB in India has four business segments, comprising around 30 independent business areas. Each business area operates like an independent company with its strategic plans and budgets. Teamwork is central to ABB's strategy achievement. Traditionally, ABB's performance appraisal system focused on individual performance and results, with the compensation system rewarding high performers. However, this system discouraged teamwork, essential for a customer-focused strategy. ABB has since modified its appraisal and compensation system to promote teamwork with the following aspects:
1. Change of nomenclature to developmental appraisal to emphasize learning and development.
2. Planning job roles for the following year for role clarity.
3. Counseling for development to encourage openness.
4. Emphasis on individual contribution to team performance.
5. Process parameters focusing on quality, customer orientation, and systems.
6. Identifying training needs for individuals and teams.
7. Focus on individual and team development.
8. Client-centered approach with forms maintained by team leaders.
9. Label-free ratings to avoid categorizations like 'outstanding' or 'average'.
ABB has also introduced a compensation system for managers that incentivizes teamwork based on performance parameters. Individuals are classified into three categories: Group A, B, and C based on their performance exceeding, meeting, or falling below expectations, respectively.
In conclusion, while the bell curve system alone may not be ideal, some adjustments can make it a more effective solution.
Thanks & Regards,
AJ
Before the implementation of the Bell Curve Appraisal System, please ensure the following:
a) Use objective parameters for the performance appraisal system.
b) Determine the reason for poor performance of the employee if there is any.
c) Let the employee take responsibility for improvement and only offer your assistance if needed.
d) Document all performance-related discussions with the employee because generally, the bell curve system attracts a lot of lawsuits by fired employees in the West. Hence, it's better to have all discussions documented for your and your company's safety.
During a discussion with a friend who used to work for ABB, the following practices followed by ABB were highlighted as an innovative solution to the bell curve appraisal system.
The primary business strategy of ABB worldwide is customer focus, achieved through Total Quality Management (TQM), time-based management, and supply management. ABB in India has four business segments, comprising around 30 independent business areas. Each business area operates like an independent company with its strategic plans and budgets. Teamwork is central to ABB's strategy achievement. Traditionally, ABB's performance appraisal system focused on individual performance and results, with the compensation system rewarding high performers. However, this system discouraged teamwork, essential for a customer-focused strategy. ABB has since modified its appraisal and compensation system to promote teamwork with the following aspects:
1. Change of nomenclature to developmental appraisal to emphasize learning and development.
2. Planning job roles for the following year for role clarity.
3. Counseling for development to encourage openness.
4. Emphasis on individual contribution to team performance.
5. Process parameters focusing on quality, customer orientation, and systems.
6. Identifying training needs for individuals and teams.
7. Focus on individual and team development.
8. Client-centered approach with forms maintained by team leaders.
9. Label-free ratings to avoid categorizations like 'outstanding' or 'average'.
ABB has also introduced a compensation system for managers that incentivizes teamwork based on performance parameters. Individuals are classified into three categories: Group A, B, and C based on their performance exceeding, meeting, or falling below expectations, respectively.
In conclusion, while the bell curve system alone may not be ideal, some adjustments can make it a more effective solution.
Thanks & Regards,
AJ