Is Normalization of Performance Ratings required?
Year after year, employees perform with the hope that the organizations will recognize their performance. On the other hand, organizations are constrained by the budget for salary increments that are allocated by management each year. The Human Resources (HR) in most organisations, often finds itself caught between the expectations of employees and the demands of management. Interestingly, the concept of the normal distribution curve is sometimes applied inappropriately or forcefully. Management may use a forced rating system to adjust employees' performance ratings, often overlooking individual contributions. In the worst cases, when forced ranking fails to yield the desired results, organizations may implement cost-cutting measures under the pretext of Normalization . Who suffers more: employees or organizations? While it may seem that employees bear the brunt, it is ultimately the organizations that suffer the most. The million-dollar question is: if both employees and org...