Shaping the Bell Right

Vitality Curve
• The Normal Distribution Curve is used as tool in
measuring human capacities, Pioneered by the
leader Jack Welch former CEO of GE
• It is a differentiation tool used to assess an
employee’s performance and promotability
• Jack called it as ‘Vitality Curve'. Also known as
- Dead man’s Curve
- Forced ranking
- Rank and yank
- Up or Out
 Grading the curve
• The employee force is ranked into a 20-
70-10 bucket.
• Where 20 percent are rated as 'excellent‘
• 70 percent as the ‘vital’ - back bone of
the company
• 10 percent as ‘bottom-feeders’
Cont..
Illustratively, it is to show appraisers that,
1. Not more than 10% should be promoted
in each department
2. Least 10% must be weeded out for low
performance;
3. The rest being rated from average, good
to very good.
The Dead Man’s Curve
Also referred to as 9 Block
 Advantages of Vitality Curve in
PAM
• It brings objectivity to the PAM process
• It helps in normalization of the appraisal process
• It lends itself to predictable performance patterns
• It guides appraisers on how to follow an uniform
rating process/pattern
• It helps management in planned attrition and in
predicting promotions/job enlargements/job
enrichments/rewards/incentives, etc.
Cont..
• It systematically identifies high performers for
commensurate rewards and identifies low/weak
performers for training/forced attrition.

• On a predictive index, it provides a bird's eye

view of the uniform, systematic performance
patterns across grades/levels/functions in the
organization.
 Disadvantages of Vitality Curve in
PAM
• It seems rigid and impractical, especially for
small/medium. It may reduce organizational
flexibility.
• It does not promote 'performance adjustments'
• It makes 'extreme raters" skeptical since it does
not allow them to rate as they wish causing anxiety
or discontentment
• It may be difficult to simulate/follow since
outstanding performers or weak performers may
not essentially be 10%-20% , year-on- year.
Cont..
• The methodology may not be easily understood
by all appraisers
• Training inadequacy in appraisers may yield
disastrous results
• Implementation may be difficult since HR has to
ensure constant compliance.
• Being a 'forced-distribution' method, it may face
dissent from appraisers
• It may not adjust well with skill/managerial
demand-supply situations
 Arguments against the use of
vitality curve in PAM
• Unethical - Forcing a certain section of employees every
year is unethical says Praneet Mehrish, Country Human
Resource Director, ST Microelectronics Ltd.

• Subjective - Since the bell curve is applied, not across all

the employees, but to individual department / team /
function, there is a good chance that the worst in the
high performing group may be better than the best in an
average performing group. Finally, the company may be
left with low performers, while losing some good ones,
says Hari Mohan Jha, VP (HR), ITC Welcome Group
Hotels
Cont..
• Not compatible for small teams - Logically too, such a
model cannot work for a very small group of extremely
high or low performers for the simple reason that it force-
fits them into predefined compartments. If it works, it
can work only for a large, randomly selected sample, says
Madhukar Shukla, Professor, XLRI

• Dysfunctional work environment - Bell curve method

may increase productivity and pave growth opportunities
for good performers, it also creates a sense of fear among
those who remain behind says Ed Lawler of Enron
 Before you Bell the Curve..
• Use objective parameters for the performance
appraisal system.
• Confront the employee. There could be reason
for his / her poor performance.
• Shift the onus of improvement onto the
employee, but offer your assistance if needed.
• Follow up frequently.
• Finally, document all performance-related
conversations you have had with the employee
in order to have important evidence on your
side if he or she contests the termination.
The end