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The Bell Curve Dilemma And Performance Appraisal

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The Bell curve conundrum

It is a well-established fact that employed human capital provides the competitive edge to the firms operating in the same competitive space. Organizations that have motivated and talented individuals are likely to forge ahead of the pack, even if they have similar products or services. That is why it is important that we manage the performance of the employees well. We discuss the goals to be achieved during the year; provide feedback to employees on their progress and modify the direction as the year progresses and organizational direction shifts. At the end of the performance year, start pulling together information and evidence of how well the employees have achieved the goals. Then apply a rating which will govern their payouts, promotions and compensation and create development plans for the next year. We cannot fathom anything to go wrong in this textbook laid process. It has been a best practice after all! But somehow ‘performance appraisal’ is the most hated organizational practice by the employees. No one is ever happy with the results of their performance appraisals. Many solid, successful, and happy employees find their ratings discouraging. At the same time we find the managers and HR to be fidgeting uncomfortably even after doing everything they could to ensure that the performers are well fitted in the bell curve. There has to be a better way. Have the companies like Microsoft, Cisco, Accenture and IBM found the better way by doing

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