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Since companies conduct performance reviews annually, quarterly and every six months, as well as conducting mini-reviews...

Since companies conduct performance reviews annually, quarterly and every six months, as well as conducting mini-reviews in between the annual reviews, there are a number of reviews that are selected for use. As mentioned in the assigned reading, the use of Bell Curves in the performance management section as a basis for employee performance evaluations has a tendency to result in a negative effect on employees perceptions of their work environment. For example, out of a 100% workforce, if all are assigned a number 1-5 as discussed in the reading exercise, roughly 80% of this population can be grouped into the average to low performance bands. With this in mind, only 5 -10% can be scored as exceeding expectations per year. Therefore, based on this evaluation criteria, it has the tendency to eliminate raises for the employees, specifically because the only eligible employees will be those that score in the top 5%. Ultimately, this is just another step towards a less than satisfied workforce and seems that it would be taking a toll on loyalty, turn over, and general company moral. Do you agree or disagree?

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Answer #1

I would strongly agree with the discussion because I believe that the Bell Curve structure actually limits the management to reward employees even if they deserve better and that is the reason there are various organizations who are discarding the relative rating and using absolute rating. In the Bell Curve system, individuals are evaluated relatively with reference to a different employee because the managers are given slots and they cannot go beyond it. This actually contributes towards dissatisfaction in employees as they feel deprived hence attrition increases.

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