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I think the bell curve appraisal system is better known as the Forced ranking appraisal systems. it require managers to rank their employees from best to worst, apply the rankings to a bell curve and use the results to determine pay as well as who to fire.

"General Electric, the firm with which the procedure is most closely associated, sorts employees into three groups: a top 20 percent on whom rewards, promotions, and stock options are showered; a "high-performing middle" 70 percent with good futures; and a bottom 10 percent. "A company that bets its future on its people," CEO Jack Welch wrote in his final stockholders' letter, "must remove that lower 10 percent, and keep removing it every year-always raising the bar of performance and increasing the quality of its leadership."

GE isn't alone: Ranking employees is everyday practice at companies like Microsoft, Cisco Systems, Hewlett-Packard, and Sun Microsystems. Sun's system parallels that of GE: 20 percent are "superior," 70 percent are "Sun Standard," and 10 percent are "underperforming." Hewlett-Packard uses a 1-5 scale, with 15 percent receiving the best grade of 5 and 5 percent receiving 1's. Microsoft uses a 2.5-to-5 scale; EDS uses quintiling. Fortune estimates that a quarter of Fortune 500 companies have instituted forced-ranking programs."

this excerpt is taken from the 2nd article below.

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15y ago

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