Hi all, Could anyone explain the use of bell curve in performance Management? If you have a ppt please forward. Regards Sharath
From India, Maisuru
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From India, Maisuru
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Bell Curve in PMS is nothing but the normalization process of employee performance/potential, etc. Wherever performance appraisal is designed based on a score/rank, the scores are represented with a digit such as 1/2/3/4/5 or A/B/C/D/E - where 1/A being Excellent, 2/B being Very Good, C/3 being Good, 4/D being Average, and 5/E being below average.
Normally, the ratings vary depending upon the appraiser's experience and expertise in evaluating his/her subordinates. Those who do not wish to get into controversy tend to have a central tendency to mark/rate "Good" for all their subordinates. Some liberal bosses wish to give all "Excellent," while there are stringent reporting officers who always prefer to mark below "Good" even for good performers in their team.
The Bell curve helps Reviewing officers to enforce the normalization of ratings for all appraisals for a specific period and re-examine the ratings to fit under a Bell curve. As an organization, it is common that the majority of employees fall under the "Good" Category - i.e., they perfectly carry out their job. "Average" performers are those who aim to be good but due to some competencies lack, they are unable to achieve good performance; they are not bad elements. These employees may require feedback and time to develop to reach the level of a "Good" Performer. However, below-average performers are detrimental to the organization's growth, and they may be asked to look for a different job if not improved during the PIP period (Performance Improvement Plan).
"Very Good" performers are typically rewarded with a slightly higher increment compared to "Good" performers and are fast-tracked for future leadership roles.
During an appraisal period, certain weightage is given for personal contribution, and those who add value and contribute to the organization's growth and fall in the "Very Good" Category are ranked as "Excellent."
Organizations define the "Bell Rule" where the left extreme of the Bell curve, i.e., "Excellent" category, is limited to 5% to 8% of employees in any organization, and a similar percentage of employees fall on the right extreme of the "Bell," i.e., "Below Average." Close to 60% of employees fall under the "Good" Category, while 15% to 18% fall under both "Very Good" and "Average" on the left and right sides of the center part of the Bell curve.
Hope the above clarifies your doubts.
Guru
+91 99721 33733
From India, Madras
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1Normally, the ratings vary depending upon the appraiser's experience and expertise in evaluating his/her subordinates. Those who do not wish to get into controversy tend to have a central tendency to mark/rate "Good" for all their subordinates. Some liberal bosses wish to give all "Excellent," while there are stringent reporting officers who always prefer to mark below "Good" even for good performers in their team.
The Bell curve helps Reviewing officers to enforce the normalization of ratings for all appraisals for a specific period and re-examine the ratings to fit under a Bell curve. As an organization, it is common that the majority of employees fall under the "Good" Category - i.e., they perfectly carry out their job. "Average" performers are those who aim to be good but due to some competencies lack, they are unable to achieve good performance; they are not bad elements. These employees may require feedback and time to develop to reach the level of a "Good" Performer. However, below-average performers are detrimental to the organization's growth, and they may be asked to look for a different job if not improved during the PIP period (Performance Improvement Plan).
"Very Good" performers are typically rewarded with a slightly higher increment compared to "Good" performers and are fast-tracked for future leadership roles.
During an appraisal period, certain weightage is given for personal contribution, and those who add value and contribute to the organization's growth and fall in the "Very Good" Category are ranked as "Excellent."
Organizations define the "Bell Rule" where the left extreme of the Bell curve, i.e., "Excellent" category, is limited to 5% to 8% of employees in any organization, and a similar percentage of employees fall on the right extreme of the "Bell," i.e., "Below Average." Close to 60% of employees fall under the "Good" Category, while 15% to 18% fall under both "Very Good" and "Average" on the left and right sides of the center part of the Bell curve.
Hope the above clarifies your doubts.
Guru
+91 99721 33733
From India, Madras
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