Bell Curve is a procedure that requires managers to assign employees into predetermined groups according to their performance, potential, and promotability.. General Rule:
Company sort the employees into three groups.: a top 20% on whom rewards ,promotions and stock options are showered; a high performing middle 70% with good futures; and a bottom 10%. The bottom 10% is unlikely to stay.
Bell Curve appraisal system is not completely helpful in India. It had considerable success in the west because of the work culture followed by corporates there.
In India we tend to have a more emotional approach and hence such an implementation could seriously hamper the name of the company in the Candidate and Graduate Market.
Three major flaws I see in this system are:
a) This system is implemented department wise instead of the entire employee database and hence there are chances that the worst in some departments are much better than the average in other departments but still they are forced to leave.
b) When this system is implemented in a department where the performance has been very good and the company can't afford to fire the lower 10% the bonuses and the raise in salary is quite less compared to other departments and hence sooner or later the firm seems the top 20% leave because they are not happy with their respective packages.
c) This system along with improving the top performers in your company would also attract hyper competitive nature among employees and hence resulting into a dysfunctional working environment in the same department.
d) The trainees are generally the ones who get fired.
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