Microsoft also made headlines when they axed their curve-rated performance appraisal in 2013 to adopt a better fitting method, but it looks like Facebook is considerably late to the axing party. I could go on, but this is not the first time the bell-curve ranking system has received negative reviews. Thankfully, Uber threw out this performance appraisal rating method following further negative publicity and decided to transform its appraisal strategy focusing on feedback and improvements instead. “A Harvard Law School study found that women are 1.4 times more likely to receive subjective feedback in their performance reviews that have nothing to do with how well they can do the job.” - Monica Torres, Ladders In some instances, bell-curve ranking can even be discriminatory. A lawsuit in 2017 against Uber by a former engineer, felt the company’s ranking system was discriminating against women and the lower rankings meant lower pay and fewer promotions.įor example, there will be employees that are meeting the requirements of their role but cannot go that extra mile due to a protected characteristic. Perhaps a pregnant woman on amended lighter duties that cannot work longer hours or do overtime may be marked down against her peers that can. When employees are performing to an equal standard, gender bias research has shown that unconscious bias will determine the final score. Great performers are still averageĮven employees that perform well may be placed in the middle ‘average’ group which isn’t exactly a motivating classification to be given and is particularly bad as they make up the majority of the team. If 70% of the employees are working the best they can and are still considered average by the company, then what is that going to do to their engagement levels? They are going to feel demoralised and lack productivity going forward, which will ultimately result in them leaving the company one way or another. Managers are forced to put employees in a specific rating just to meet the bell-curve requirements, meaning that some people are graded as ‘bad’ or ‘below average performers’, when that may not even be the case. The lower scoring employees could still be great performers who meet the role expectations, but are pushed into this bottom category simply because there is nowhere else to place them against their peers in this rigid model. The bell-curve model helps management to very quickly identify the top performers, which will prompt reward benefits and recognition that can go a long way to retaining the best talent within the organisation. If you have employees that like to work competitively, or work in a cut-throat environment such as hard sales or commission focused, the stack ranking method could increase productivity amongst the team to drive sales to avoid being placed in the low-scoring percentage. Can be a motivational tool for productivity Managers tend to rate performance leniently to not create any tension, avoiding the often uncomfortable (but necessary) conversations that could demotivate staff if communicated poorly. The bell-curve ranking system doesn’t really care about that, and forces management to have those difficult conversations about poor performance meaning serious issues could be addressed right there and then. Pushes management to deal with issues promptly So, what are the pros and cons of the bell curve rating system? Pros #1. The reason why it’s sometimes referred to as ‘forced ranking’ is because managers have to do just that - forcibly rank all of their team into one of the stated categories regardless of whether they are all performing well or not, which surprisingly can be beneficial in some instances but damaging in others. Non-Performers or Below Average Performers (10%).If you’re unfamiliar with the bell curve rating system in performance appraisals, simply put, it’s a performance evaluation method that force ranks employees into a bell-shaped best to worst scale, which often looks something like this: Let's explore the limited pros and many cons of the controversial bell curve method of performance appraisals and look at its impact on the Company culture
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