Breaking Free From the Bell Curve: An Alternate Proposition for Performance Management

Shrihari S. Sohani and Biju Varkkey

No WP2015-10-04, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Performance management processes that follow a Gaussian distribution (bell curve) and focus on past performance rather than a future promise have come under critical focus. Such systems have been found to foster short-term focus among the employees that does not augur well for the competitiveness of the firm. Also, utilising the same rating for determination of rewards as well as finding suitability for the role and vertical mobility has been found to be myopic. Off late, many organisations have done away with the bell curve but the move has raised questions about the alternatives. In this manuscript, we have suggested alternate mechanisms of appraisal that handles reward determination and suitability for promotion through two distinct levers. We also present a case study that enumerates a novel approach to performance management that allows accrual of value for the firm along with incrementing employee motivation and engagement.

Date: 2015-10-16
New Economics Papers: this item is included in nep-bec and nep-ppm
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Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:13754

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