Bell Curve Appraisal

Meaning & Definition

A Bell Curve Appraisal is an assessment of employee performance that arranges ratings into a bell-shaped curve. Most employees will be rated as average, with a small number rated as either above average or below average compared to all other employees. This method provides a standardized way of evaluating employee performance across all teams.

Importance of Bell Curve Appraisal

• Enables organisations to differentiate between high, average and low performers.
• Provides organisations with consistent standards and guidelines for rating performance.
• Facilitates companies’ compensation, bonus and promotion decisions.
• Eliminates expanded ratings by creating an environment conducive to balanced distribution of employee ratings.
• Assists human resource departments in evaluating overall performance trends across an organisation.

Legal Compliance / Policy / Regulation

Appraisal using Bell Curve model is not being enforced in Indian labour Laws. its use is subject to Internal Performance Management policy as well as the company’s need to ensure that it is consistently and appropriately applied to avoid claims against discrimination.

Performance documentation must be available and used to support any appraisal results; therefore, any Adverse Actions taken as a result of an employee’s rating must obey to the company HR policies.