Normal distribution – the curve HR loves to hate

The controversy started with the contentious Performance appraisal piece. In the beginning, manufacturing – which uses Sig Sigma for setting quality standards, used a similar concept to measure the productivity of workers. Since the numbers were large (above 30 people) and the deliverables were similar, there was proof that the productivity followed a normal distribution.

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Ref: https://www.thedailystar.net/business/the-bell-curve-dilemma-1471591


From a practice of measuring and creating the curve, the practice shifted to forcing the construction of the same. Perhaps because now the teams were often in qualitative jobs where productivity was not so easily measurable. Therefore, the forced bell curve became a good way for a manager to arrange the subordinates to enable the decisions of how much raise/increase in salary should be given could be done in a standard, transparent manner. It became easy to justify why certain people got a certain percentage of increments. It also became a good way to have some non – regrettable attrition and bring new talent into the organization – to avoid stagnation.

As organizations became more complex, team members had different deliverables and started protesting the bell curve. The number of people with similar KPI / KRAs reduced. The solution became to move away from the bell curve from Performance management – rather than use it selectively, for teams where it is still relevant.

The normal distribution underlies much of statistical theory, and many statistical tests – Hypothesis testing, Linear Regression. It is the backbone of 6 Sigma and a process of continuous improvement post measurements. Its utility and usage cannot be belittled. The great thing in a normal distribution is that it looks at the largest section of ‘’ most likely’’ values (clustered around the mean/average) and not at the best or worst. This helps make models that can be deployed for the vast majority.

Companies like GE, Sony, LG, Honeywell use it in specific areas and are very happy with the results.

In People Management it can be effectively used in tracking Hiring performance, Salary parity, Performance management, Engagement, Attrition.  In the image below, please see a sample of how you may find metrics looking like.

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Who can use the bell curve and when?

1. A small company (<50 people) can use it for Hiring, Engagement, and Attrition but not for Performance and Salary

2. A company with 50- 1000 employees can use it for Hiring, Performance management for Junior levels, Engagement, Attrition and Salary for Junior levels.

3. A large company can use it pretty much everywhere

These above are simplistic scenarios. Reach us to discuss any specific scenario you have in mind.

Join us tomorrow for a session on how to draw “Normal Distribution” on Talent Assessment data. It will be a continuation of today’s session.

PexiScore is inviting you to a scheduled Zoom meeting.

·        Topic: Normal Distribution 2

·        Time: Apr 2, 2020 03:00 PM India

·        Join Zoom Meeting: https://zoom.us/j/925079659

·        Meeting ID: 925 079 659


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