The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Tamas Oberoi, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
Tata Consultancy Services, India’s largest IT services company, said it has abandoned bell curve based performance appraisal and is moving to a system of continuous feedback, becoming the latest player to move away from the forced ranking system.
The bell curve system — one of the most popular appraisal methods popularised by former GE CEO Jack Welch — rates a workforce by comparing performances of people in similar tasks. They are then segregated into top, medium and poor performers. But over the last two years, an increasing number of companies have been looking at other ways to evaluate their employees.
TCS’ move mirrors that of its global and Indian rivals such as Accenture, IBM and Infosys. Last month, Wipro was also experimenting with different ways to do away with the bell curve.
Bell curve is universally loathed by those being ranked on it, and TCS employees are happy that the company has scrapped the system. “There was too much room for manipulation. Lots of people used to be unhappy.The project managers used to say that they were forced to put good performers into the poor bracket just to fit the curve.
Now with this move employees can expect continuous feedback and an accurate appraisal system which will reward their performance irrespective of peers.