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Muse HR: What is a Bell Curve in Performance Management?

A bell-curve system of performance appraisal is a forced ranking system to be used on employees by the management.

The system assumes that employees in a company can be divided into groups. A typical industry practice derives the curve in the following 5 forced ranking: Rating 1 (Non Performers) : 3-5% Rating 2 (Below Performers) : 5-10% Rating 3 (Average or Meet Performers) : 60-80% Rating 4 (Above Average Performers) : 10-20% Rating 5 (Outstanding Performers) : 5-8%

A bell-curve performance rating acts as a guide to Management in rating their staff and to ensure there is no butter spread of budget and bonus distribution.

However, the bell-curve review must not be a strict rule. As we may not necessarily have a perfect bell curve at all times. HR and Management should be able to really know who their performers and non performers are and ensure ratings are done accordingly.

To learn more about Performance Management, email inquires to: #FiringUpPeople #trainingprovider #PerformanceMgt #hrdfclaimable


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