Abstract

The use and design of performance management techniques have received significant attention and modification in recent years. The environments in which organizations are operating and competing are dynamic and changing rapidly. This requires constant up-gradation and changes in organizational strategies. Many organizations are redesigning their existing performance measurement techniques to ensure that they reflect the strategies and trends of their current environment. The case describes one of such adjustments in the performance management techniques of some big companies such as Infosys, HCL Technologies, KPMG, and Microsoft. The case depicts the departure of these companies from the bell curve performance management system to a more open feedback and absolute rating system. Different views and opinions of industry experts on the benefits and shortcomings of the bell curve appraisal system have also been discussed in this case. It has been found that forced distribution of the bell curve method creates a feeling of discomfort and injustice among high performers. Thus, a more open feedback and absolute rating system is a better option than forced distribution of bell curve system. But, experts believe that performance can be evaluated only on the basis of some comparison with a reference group, i.e., peers, which is not possible in feedback and absolute rating system. Feedback system can complement but can’t override the benefits of bell curve system. The case outlines these discussions and concludes by describing some of the challenges managers will face in implementing feedback, i.e., the face-to-face appraisal method.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evaluate the bell curve as an appraisal method and comprehend other methods of performance appraisal.
• Understand what could be the basis for selection of different types of appraisal methods to evaluate employees’ performance.
• Analyze how the changing needs of the new generation work force influence the strategic decisions of the company?
• Indentify the challenges behind implementing the feedback and face-to-face appraisal method.

Keywords

Bell curve, performance appraisal method, distribution curve, feedback, peer group, employees, HCL Technologies, Infosys