Bell Curve

Meaning & Definition

Bell curving is part of how organizations manage employee contributions through performance ratings based on relative performance levels. Most employees will receive an average rating, while only a small number of employees will receive either a low rating or a high rating. When this occurs, the resultant ratings will create a bell curve. This bell curve is typically used to determine employee performance for appraisal and reward programs.

Significance of Bell Curve:

• Assists in standardising the appraisal of performance outcomes.
• Supports the differentiation between Reward, Bonus and Increment.
• Provides support for benchmarking performance against other teams.
• Provides leadership with a tool for identifying quality talent and succession planning.
• Provides data analysis for the evaluation of workforce performance.

Legal Considerations

There isn’t a legislative requirement that can specifically be linked to this term. 

Organisations using ‘Bell Curve’ performance ratings must do so consistently with: 

• Fair performance management and performance appraisal policies.
• Clear communication of the performance criteria and evaluation. 
• Anti-discrimination and equal opportunity policies.

Employers have to make sure that their method of rating does not create rating advantages or disadvantages, or force the rating system on employees.

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