Project Report

on
Bell Curve Implementation-A Case from OGDCL organization

Sabahat Fatima

BS(BA)

Department of Management Sciences

COMSATS University Islamabad, Attock Campus

 Bell Curve Implementation-A Case from OGDCL organization

Sabahat Fatima

Fa18-bba-011

Project report submitted in partial fulfillment of the requirements for the degree
of Bachelors of Science in Business Administration

Mrs. Sameen Khalid

Department of Management Sciences

COMSATS University Islamabad, Attock Campus

 Declaration

It is to certify that this submitted project report is my own genuine work, and wherever I have
taken information from, the source is properly acknowledged. If any discrepancies are found in
the report, CUI Attock Campus can take appropriate action.

_________________________

Sabahat Fatima

Fa18-BBA-011
 Certificate of Approval

It is certified that Sabahat Fatima, Fa18-BBA-011, has carried out all the work related to this
project report under my supervision at the Department of Management Sciences, COMSATS
University Islamabad, Attock campus and the work fulfills the partial requirement for award of
BS(BA)/MPA degree.

_________________________

(Mrs. Sameen Khalid)

Supervisor

_________________________

(Mr. Ghazanfar)

Program Coordinator
1.1 Introduction and Brief History of Organization

1.1.1 OGDCL Pakistan

4th March 1961, Pakistan’s government signed a loan agreement with the USSR for the
assessment of reserve in the energy sector, through which Pakistan received 27 million
Rubles to commence exploration and get assistance from Soviet’s field experts as well as
purchasing the equipment. Because of this agreement, OGDCL was formed on 20 th
September 1961, under a Company’s ordinance. With the Purpose of growing Pakistan’s
economy, OGDCL was deliberately given the responsibility to execute well designed and
managed exploration programs to play a significant role in encouraging Pakistan’s natural
reserves prospects.

In accordance with the policy tool within the oil and gas sector, the OGDCL followed the
orders from governmental authority for the development and extrication of oil and gas. In
the early stages of the company had only 5 members on the Board who were elected by the
Pakistan’s government. In the beginning, the GOP decided the monetary resources due to
the fact that peoples were unskilled in order to generate the capital for a company and lack
the managerial ability to handle the risky situations which were taken by the company. The
initial 15 years were dedicated for OGDCL’s employee development as well as it was a
huge effort to build its large organization structure and proven as an ideal organization in
the oil and gas industry.

Pakistan’s well established and successful company is Oil and Gas Development Company
Limited. Pakistan’s government-owned maximum no of shares which are approximately 74% stake
of OGDCL and the rest of the shares are held by the private investor. Today OGDCL is engaged in
exploring, drilling, refining oil and gas from the reserves, and selling it all around Pakistan. The
company maintained its profitability and become a successful and well-known leading company all
over Pakistan as well as it plays a crucial role in the economic development of Pakistan. OGDCL
organization has basically put more effort in discovering over and above 75 fields of oil and gas all
around Pakistan.
1.1.1.1 Vision

“To be a leading multinational Exploration and Production Company.” (OGDCL, 2021).

1.1.1.2 Mission

To become the leading provider of oil and gas to the country by increasing exploration
and production both domestically and internationally, utilizing all options including
strategic alliances. To continuously realign ourselves to meet the explorations of our
stakeholders through best management practices, the use of latest technology, and
innovation for sustainable growth, while being socially responsible.” (OGDCL, 2021).

1.1.1.3 OGDCL’s Core values

 Merit
 Integrity
 Team Work
 Safety
 Dedication
 Innovation (OGDCL, 2021)

1.1.1.4 Objectives

1.1.1.4.1 Financial Goals

 For future growth OGDCL build strategic reserves

 Growth and deliver superior long term returns to all stakeholders
 Make good investment decisions by ranking projects on the foundation of top key
economic indicators
 Investment of surplus funds in a wealth creation avenue to maximize its profits.
 Avoid time and cost overruns to improve the performance of results. (OGDCL,
2021)
1.1.1.4.2 Customer

 To maintain a customer satisfaction, the company continuously improve quality

of service and responsiveness
 Improve efficiency and reliability of supply to the customer
 Be a responsible citizen of corporate (OGDCL, 2021)

1.1.1.4.3 Learning & Growth

 Through updated HR practices the company motivate its work force as well as
build up their managerial, technical and business skills.
 Acquire, grasp and apply modern/updated technology.
 Through effective application of knowledge management system OGDCL
emphasize learning and research of organization
 By Fascinating and retaining great professionals, the organization bridge the
competency gap within the organization
 Obtain full independence in financial and decision making matters. (OGDCL,
2021)

1.1.1.4.4 Goals of Internal Process

 Develop consensus through advisory process of connecting activities of all

departments
 Be superior in the contexts of exploration, development and commercialization
 Be clear in all business transactions
 Cooperative environment by building effective business practices and teamwork
 Company’s well-managed SOP’s with specific accountabilities and ownerships
 organization improve strategic planning and internal decisions by updated MIS
 Improve business internal controls
 Reengineering in periodic business process. (OGDCL, 2021)
 1.1.1.5 Corporate Social Responsibility

OGDCL offers many corporate social responsibility programs, as it is given greater

importance to the development of communities that are residing in and around the
operation area of the company. The company believes that without CSR, businesses cannot
taste long-term success. The business and social commitment lead the company towards
the massive programs of education, health, water, emergency relief, civic amenities, sports,
and infrastructure in order to promote a supportive environment between OGDCL and
local communities. The company’s CSR programs include:

 National Talent Hunt Program of OGDCL in collaboration with IBA Karachi

 National Talent Hunt Program of OGDCL in collaboration with Sukkur IBA
 Scholarship program of OGDCL with Universities of Engineering through HEC
 Need-Base Scholarship of OGDCL with Quaid-i-Azam University through
HEC
 Need-Base Scholarship of OGDCL with International Islamic University (IIUI)
 Pakistan Cadet college Scholarship Programs from OGDCL
 The Hunar Foundation---Technical and Vocational Training Programs from
OGDCL

1.1.1.7. OGDCL Employees

In the company, there are 24 main departments from these departments there are further
sub-departments as well as sections. And about 14000 employees are working in this
organization on its payroll. Moreover, the OGDCL organization has a proper system of
executive grade, management grade, and other staff members. In other words, we can say
that these all grades are basically separated into pay groups, and there is the further
division of each pay groups are based on employee's merit of Pakistan and the specific
provinces quota system

Executive grade consists of EG VII (executive general), EG VI, EG V, EG IV, EG III, EG

II, EG I, and the rest of the trainees. It also includes 150 employees who are appointed
which are based on the merit of Pakistan and the rest of 1800 employees are appointed on
the basis of the quota system of the four provinces of Pakistan, FATA, and AJK
Management grade include M-I, EG IX, and EG VIII through which 8 EG VIII employees
are based on open merit and other 15 employees are associated with FATA, four
provinces, and AJK based on quota.

The company’s staffs include executives, employees as well as trainees. These staffs
consist of a total of 50 employees who are basically appointed on the open merit of
Pakistan and other 9000 employees are from all four shires of Pakistan, FATA, and AJK
on the basis of specific provincial quota system (Oil and Gas Development Company
limited.[OGDCL]. 2021).

1.1.1.7. OGDCL Departments

1.1.1.7.1 Corporate Department

 Administration  Secretariat

 Human Resource Department  Internal Audit

 Finance & Accounts  Communication

 Supply chain Management  Material Management

 Corporate Affairs  System Support

 Aviation
 Personnel
 Security

 Legal / regulation
 OGTI department
 G & R Lab
 Medical

1.1.1.7.2 E & P Department

 Exploration Studies & Research

 Production department
 Exploration Prospect Generation
 Process Department
 1.1.1.7.3 Technical Service Department

 Drilling Department
 Geological / Geophysical Department
 Engineering/Workshops Department
 Data Logging Department
 Stimulation Department
 Mud Engineering Department
 Seismic Data Processing Department
 Well Services Department
 Logistic Department
 Cementation Department

1.1.2 Historical background of OGDCL

1.1.2.1 OGDCL Establishment

The OGDCL organization was basically formed in 1961 under an agreement to
initiate exploration programs, as well as the company, decided to endorse Pakistan’s
oil and gas. OGDCL became a Public Limited Company in 1997. Now a day it is
ruled under the Companies Ordinance 1984. The Company gained assistance from
several donor agencies which include World Bank, Canadian International
Development Agency (CIDA) and the Asian Development Bank in order to work on
important projects as well as get loans for the company’s development.
Organization’s beginning years was much successful as the company discovered
many oil and gas fields to stabilized its reputation in the sector of oil and gas as well
as it plays a pivotal role in growing Pakistan’s economy. The “Toot Field” is the first
field in the northern area which was practicable for the company to make successful
exploration by discovering more fields in that area. The organization followed strict
strategies in the early ’70s to introduce updated equipment in the company;
consequently, the company made many incredible establishments in the ’80s and
became successful in commercial discoveries such as Sorio, Thora, Tando Alam,
Lashari, Bobi, and Dhodak oil /condensate fields and Uch, Pirkoh, Loti, Panjpir &
 Nandpur gas fields that lead the Corporation to the professional capabilities and made
financially stable in the oil and gas sector.
In 2003 Pakistan government obtained its shares from the OGDCL organization.
Initially, equity is 3% and 5% of shares offered to the general public for investment
through this they can get a large amount of profit as it is much useful for the public.
As a result, the company got overwhelming responses from the public as well as the
historical transitions were done in the capital market of Pakistan. Government of
Pakistan again withdrawal 10% of shares further from the organization in November
2006. And then offered to the general public and now listed on the Stock Exchange of
London on 6th December 2006. (OGDCL, 2021)

1.1.2.2 OGDCL Development

The structure of OGDCL is properly organized, well managed and modest as the
company explores and discovers resources for good production of oil and gas in
Pakistan as well as looking different opportunities in foreign countries.

The OGDCL Organization has a position of Largest estate in Pakistan as it has

business operation in 20 franchises of exploration and holds non-operational working
interest in another 10 businesses of exploration Furthermore the company has 40
Mining, Development and Production occupancies that are functioned by OGDCL
along with this the organization have working interest ownership in 28 non-
functioned Mining, Development and Production occupancies due to company’s
broad index. The company’s service area is much capable, competent, and
professional expertise in geology and geophysics field which are particularly
followed by the state and non-state firms. The company plays a leading role in oil
and gas sector due to the largest shareholder of oil and gas reserves in Pakistan that is
47% of oil and 39% of gas reserves. OGDCL organization has 36% of shares in oil
and 27% of shares in gas production
 1.2 Organizational Structure of OGDCL

Chairman

Board of Managing Company Chief Staff

Directors Directors Secretary officer

E.D E.D E.D E.D E.D E.D E.D E.D

(Admin) (Finance/ Exploration Petroserv Corporate Production (SCM) (CSR)
Accounts) Affairs

General General General General General General General General

Managers Managers Managers Managers Managers Managers Managers Managers

Managers Managers Managers Managers Managers Managers Managers Managers

Chiefs Chief Chief Chief Chief Chief Chiefs Chiefs

(Admin) (Account Engineers Engineers Corporate Engineers
officers)

DY Chiefs Senior Principle Principle DY Chiefs Principle DY Chiefs DY Chiefs

(Admin) (Account Engineers Engineers Corporate Engineers
officers)

Senior Senior Senior Senior Sr. SCM Sr. CSR

Sr. Admin Account
Engineers Engineers Corporate Engineers Officers Officers
Officers Officers
officers

Admin Finance/A Junior Junior Junior Junior SCM CSR

Officers ccounts Engineers Engineers Corporate Engineers Officers Officers
Selections officers

Admin Exploration Drilling Corporate Production SCM CSR

Selections Staff/ Staff/ Staff/ Staff/ Staff Staff
Selections Selections Selections Selections
1.2.1. OGDCL Board of Directors

The company BOD comprises 12 Directors, all of them are selected by the Ministry of
energy Petroleum & Natural Resources. They are managing policy related issues .Non
Executive Officer and Managing Director/Chief Executive Officer are the head of this
autonomous Board.
1.3 Main Offices of the Organization
In Jinnah Avenue, Blue Area Islamabad, the Head office of OGDCL is located and
Regional offices are situated in Karachi and Multan. And apart from this the company
has its Liaison Offices for operational activities in Quetta, Sukkhur, and Hyderabad.

OGDCL Head Office Address

1.4 Organization’s Product/ Services

In the product line of OGDCL, the following are its products by which it is earning profits:

a. Crude Oil. f. Kerosene Oil.

b. Gas. g. Naphtha.

c. LPG. h. Solvent Oil.

d. Sulphur.

e. Gasoline/High and Low Speed Diesel.

 Medical Centers,
Islamabad, Rawalpindi &
Karachi

OGDCL Regional Office, OGDCL Regional Office,

Multan Shafi Chamber, Karachi

OGDCL Liaison OGDCL Liaison

Office, Quetta Office, Sukkur

Pirkoh Gas Company OGDCL West

Pvt Ltd Islamabad. Wharf Office,
Karachi
OGDCL Head Office,
Jinnah Avenue

Branches of OGDCL

OGDCL Base Store,

OGDCL Base Store,
OGDCL Base Store,
Islamabad Khadiji, Karachi
Kot Addu

OGDCL Base Store, OGDCL Base Store,

Korangi Kot Sarang

Oil & Gas Training Institute,

OGDCL Workshops,
Islamabad Islamabad
 Chapter 02: Data Collection
2.1. Data Collection Method
The Structured interview questions for data collection focus on the problems faced during the
bell curve implementation as well as shortcomings of bell curve appraisal system in OGDCL
organization. Interviews are conducted with Hr managers through telephonically as due to the
pandemic situation. The context of study was explained to the interviewees (Managers) at the
onset emphasizing the discussion would focus on the bell curve implementation before
conducting the interviews. And beside this I had also gathered information from OGDCL past
reports for my case study development

2.1 Detail of Sources of Data

For my Case Study development the main sources are mainly from primary sources. Firstly, I
collected information about bell curve implementation in OGDCL organization and how it
impact on employees and its problems/ shortcomings by conducting two interviews from HR
managers telephonically through my reference who is employee there. I design some
structured interview questions by the help of two research studies. As well as I gathered data
from Past OGDCL reports (Secondary Source) that are based on appraisal system.
 Chapter 03

3.1 Case Problem

In OGDCL organization mostly employees work at head office and fields where they extract oil
and gas. The main problem is that there are some employees in the head office of the
organization, who get favors during the bell curve performance appraisal. And those at fields
failed to get true rating to various factors and also it hurt them badly during their
promotion. As certain numbers are allocated to them such as “Very Good, Good, Average and
Below Average” and then sum up for the last five years’ performance. If it meets the threshold
level, then his promotion is considered otherwise he has to wait for good rating in annual
appraisal. And the morale of the employees goes down, if he is not being evaluated properly or
been appraised in such way that his ACRs number could not exceed the threshold which is being
set for next promotion.

Performance Reviewing System is the most significant part of the organization which helps the
managers to evaluate the true performance of his/her employees in order to identifying the
promotable employees and the low performing employee Moreover the supervisor/manager give
valuable feedback to their employees and then further fulfils the gaps through proper training
and development programs. But sometimes the Performance reviewing system is very difficult
aspect for management to handle them efficiently. This is due to the reason that there is not a
proper implementation of performance appraisal system in the organization.

The Root causes of these problems is that there is no proper depiction of employee actual
performance in OGDCL organization as it is not be measured in term of quality and quantity for
the whole year accurately .And OGDCL organization lags behind in the areas of digitalization
and the intended benefits are not reaped in true sense
 Chapter 04: Case Analysis and Solution

4.1 Critical Analysis:

This section critically analyzes the management theories and concept with the method of
appraisal system i-e Bell Curve that is used to evaluate the performance of employees in
OGDCL organization and examine several relevant theories with shortcomings of Bell curve
appraisal system and the main problems that arise due to these shortcomings during the Bell
curve implementation in the organization. Today Performance management methods are highly
prioritized by many organizations because in challenging times, companies seek significant
performance gains from their employees, and managing the appraisal system according to the
organization’s environment is also a hectic task for management. Bell curve appraisal system is
included in the conventional method of appraisal system which is used to provide an effective
path for the development of the workforce in the organization and rewarding to motivate
employees who are working hard for the organization objectives. But main issues are arises
when this appraisal system is not implemented in such a way that it doesn’t judge employee
actual performance during the whole year and it compares the performance of one employee is
relative to the other employee that leads them towards the de-motivation factor and they become
unsatisfied with the performance review system which will effect on their job performance

In OGDCL organization, there is not a right appraisal system to evaluate employees actual
performance, it has some flaws which can create problems in the company as there is no proper
depiction of employee actual performance that is measured in terms of quality and quantity for
the whole year accurately this was eventually leading employees towards de-motivation factor as
interviewee said they may think their work is not valuable for the organization and they become
unsatisfied with the performance evaluation system and which effects on their performance

Expectancy Theory

In expectancy theory, the employee knows that their extra effort is rewarded and they are motivated to
work hard to meet organizational goals. This theory describes that employees input is valuable for the
organization that can be highly appreciated by the organization and employee is motivated to work
deliberately in the organization.
In this case situation, it is reverse of expectancy theory as the employees are not motivated because
employees performance are evaluated based on bell curve appraisal system which can distribute
employees performance in different categories i-e (Very good 20%, Good 60%, Average 15% &
Below Average 5%). To balance the percentages of these categories, supervisors put employees
who lie in the category of “Good” into the “Average” category and further this will affect their
promotion which loses the morale of employees as they think their input is not much value for
the company and their performance in an organization is also low because of de-motivation
factor

Equity Theory

Equity theory describes that individual believes that their input and outcome matches with
another individual who is in the same post. Basically, Organization evaluate the performance of
each employee based on fairness

But in this case, the company follows the bell curve appraisal which creates the error of central
tendency as the supervisor rates each employee on average and ignores their actual performance
in terms of quality and quantity which leads the employee to de-motivation factor as their
performance is not fairly judge and outcomes are not same.

Justice Theory by Jane Parson

This theory said that the rewards are distributed among the deserving employees who have
completed their extra targets and work hard for the betterment of the organization through this
employees are motivated to put efforts in next time as well

In this case, the company didn’t depict employee whole year performance in terms of quality and
quantity by using the Bell cure appraisal system so deserving employees don’t get their rewards
and they become unsatisfied and next time they are unmotivated to perform or put extra efforts to
grow in the organization 

Social Comparison Theory

This theory state that when an employee compares his performance with relevant peers, he will
improve self-performance when he faced unfavorable comparative information.
In this case situation, Bell curve appraisal judge the performance of employees in the organization based
on relative factors also. As an employee fulfills all their targets for one year but relative to another
employee he is not performing well. Bell curve appraisal system place employees in different categories
and assign specific percentages, like in our organization, arrangement of Bell curve appraisal system
percentages are: (Very good 20%, Good 60%, Average 15% & Below Average 5%). If
any employee fulfills all the targets of one year and performs well but not relative to
the other employee, so according to the bell curve, he/she become shifted from
the Very Good 20% category to the Good 60% category. This eventually leads them to de-motivation and
sometimes employees think and compare their performance with another employee and next time
improve and put more efforts to fulfill extra targets to meet the objective of an organization 

4.2 Case Questions

Q1: Implementation of the Bell Curve Appraisal System in the OGDCL organization is
successful or not?

Q2: What are the shortcomings of the Bell curve appraisal system which create problems during
the evaluation of employee performance on the bell curve distribution method?

Q3: Do you think the Bell Curve appraisal system is the best tool for Performance Measures?

4.3 Suggested Solutions

 Firstly, top management of OGDCL organization should ensure that the employees in an
organization are ready for bell curve appraisal system or not. After getting feedback from
the employees, the organization adopt this type of appraisal system
 The organization should analyze each employee’s job expectations and requirements and
then further judge the performance of employees in terms of quantity and quality.
 Organization should make sure th at the method used for evaluating employees is perfect
or not. IMO is a suitable method to evaluate each employee individually i-e the
organization set objectives, set goals department wise, check employee whether the
employee meets goals or not, evaluation of employee based on meeting and missing
targets that are assigned.
  The organization should adopt the best alternative of bell curve i.e. 9-Box Grid in which
managers assign positions to their employees in grids that are based on performance and
potential. And give a clear picture that how fairly evaluate each employee in certain
positions and depending on these positions company is decided which employee needed
training etc
 The organization should need to do Regular Check-ins to update the performance of each
employee in real-time which can illuminate the recency bias during the ranking.
 There should be instant feedback after evaluating the performance of employees which
can facilitate adequate ranking and improvements in employees' performance.
 360- degree feedback is the best method for evaluating or effectively ranking the
employee's performance as it collects feedback from all peers across the company
 Managers should also focus on competency and performance assessment rather than
other factors which helps them to rank their subordinates fairly

References

https://www.peoplegoal.com/blog/effects-of-performance-appraisal-on-employees-the-empirical-
evidence

https://www.researchgate.net/publication/240531000_Performance_management_theory_A_look
_from_the_performer's_perspective_with_implications_for_HRD

https://www.quora.com/What-are-the-theories-related-to-performance-appraisal

https://journals.sagepub.com/doi/abs/10.1177/105960118901400106?journalCode=goma

https://opentextbc.ca/organizationalbehavioropenstax/chapter/performance-appraisal-systems/

https://opentextbc.ca/organizationalbehavioropenstax/chapter/performance-appraisal-systems/

https://www.researchgate.net/publication/327502567_Scrapping_the_Bell_Curve_A_Practitioner
%27s_Review_of_Reinvented_Performance_Management_System
file:///D:/critical%20view%20bell%20curve.pdf

https://blog.sage.hr/performance-appraisals-should-you-grade-your-employees-on-a-bell-curve-
%F0%9F%94%94/

file:///D:/implementation%20of%20bell%20curve.pdf

https://www.linkedin.com/pulse/performance-appraisal-bell-curve-aneesh-kedlaya

Annexures and Appendices

2.1.1 Interview
The interview conducted, its structure, and the answers of the interviewee are as following

2.1.1.1 First Interview

Interviewer: When was the Bell curve appraisal system implemented in the OGDCL
organization and what type of appraisal system was used before the bell curve?

Interviewee : The Bell curve appraisal system has been implemented in our organization over
the decade and traditional appraisal system adopted by Pure Government setups was followed in
our origination before Bell Curve.

Interviewer: Why is there a need of using the bell curve in the OGDCL organization?

Interviewee: As the time evolve, organizations make changes in HR practices and so did our
organization in order to get intended benefits of appraisal system.

Interviewer: How does the OGDCL organization implement the Bell Curve Appraisal
System?
Interviewee: A comprehensive exercise was conducted and thereafter implemented the system
after getting necessary approvals from the concerned.
Interviewer: How do you evaluate the bell curve appraisal system between?
(1. Very poor; 2. Below average; 3. Average; 4. Above average; 5. Excellent)

Interviewee: On Average

Interviewer: Why do you think the bell curve appraisal system is vital for your
organization?
Interviewee: Yes, it is vital for any organization if implemented in true letter and spirit. Mostly
the intended benefits are reaped if you have a sound IT infrastructure in your organization where
every employee work in terms of quantity and quality can be measured and used in the annual
appraisal system. As most of the technology companies are doing in their organization through
dashboard reporting. Our organization lags behind in such areas and the intended benefits are
not reaped in true sense.

Interviewer: Does the bell curve depict employees' actual performance? And how?
Interviewee: This is not the actual performance of the employee as I have elaborated in the
Question 5. Actual performance in term of quality and quantity should be measured for the
whole year accurately and then rate employee accordingly. Paper work still exists in our
organization and proper digitization of all the work process needs to be done on larger scale in
order to have a good look on employee’s performance. A manager can evaluate the Soft skill that
an employee has but the quality can be traceable for his work for the whole year accurately.

Interviewer: What problems did OGDCL face during the implementation of the bell
curve appraisal system?
Interviewee: Mostly the employees are unaware about this appraisal system but gradually
they were understand but still there is less acceptance because of bell curve distribution
method
Interviewee: Do you think bad rating impact on employees' promotions?
Interviewee: Yes, it’s a sure thing. It does impact the promotion. Certain numbers are allocated
to V.G, G and Average and then sum up for the last five years’ performance. If it meets the
threshold level, then his promotion is considered otherwise he has to wait for good rating in
annual appraisal.

Interviewer: Does the bell curve appraisal system reduce the morale of employees? Do
they get unsatisfied?
Interviewee: Yes, the morale of the employees goes down, if he is not being evaluated
properly or been appraised in such way that his ACRs number could not exceed the
threshold which is being set for next promotion.

Interviewee: What is the impact of bell curve implementation on employees' performance?

Interviewee 2: Low productivity, often quit job (especially new employees), lack of interest in
official work, lack of innovation etc.

Interviewer: Does their Organizational Commitment get low or not? Is the attrition
rate high right now?
Interviewee: The attrition rate is not on the verge. New employee seeks other avenues to
explore their career.

Interviewer: What are the root causes of these Problems?

Interviewee: Elaborated in Q 5 & 6

Interviewer: Does the bell curve appraisal system in OGDCL forcibly distributed
employees in 3 categories or not?
Interviewee: Yes, often management placed those employees in lower category i.e.
Average /Below average. Those employees confronted with management in some court of
law or they are having disciplinary proceeding on some issues. There are four tier
evaluation scheme which is being followed 1) Very Good 2) Good 3) Average 4) Blow
average. The employees of each department are evaluated and placed in following
percentage:

Very Good 20%,

Good 60%,

Average 15%,

Below Average 5 %

Interviewer: Does the bell curve consider observing the performance of employees to
the nearest distribution curve?
Interviewee: Yes

Interviewer: Is the bell curve considering a rigid approach for rating OGDCL employees?
Interviewee: To some extent.

Interviewer: Is the bell curve avoiding the leniency effect in your organization?
Interviewee: It depends on the manager, how he is evaluating his subordinate and placing them
at grid. There may be biasness in the rating in terms of language, place, etc.

Interviewer: Is the bell curve appraisal system allowing the error of central tendency?
Interviewee: Yes.

Interviewer: Is the bell curve appraisal encouraging a political culture in your

organization?

Interviewee: To some extend but not on larger scale.

Interviewer: Does it consider that individual scores relative to the performance of other
employees in OGDCL?
Interviewee: Yes this issue mostly arise in smaller department of the organization, managers are
comparing individual employee performance with others but in headquarter, the individual is not
evaluated in term of relative score and they rated on the basis of target vs achievement basis.
These targets are given at the start of fiscal years

2.1.1.1 Second Interview

1. Interviewer: When was the Bell curve appraisal system implemented in your
organization and what type of appraisal system was used before the bell curve?

Interviewee 2: Our Bell curve appraisal system has been started around 2008-2009 and a
traditional appraisal system was implemented in our organization before the bell curve appraisal
system

2. Interviewer: Why is there a need of using the bell curve in your organization?
Interviewee 2: Bell curve appraisal system basically distribute the performance of employees
evenly and very helpful for management to identify who is the top performers according to
which they will give appropriate rewards & compensation in the organization so our organization
implement this appraisal system in order to appraise the performance of each employees by
distributing them in categories as basically to identify the top and low performer through which
they can further give benefits to top performer as well as help low performers to improve their
performances.

3. Interviewer: How does the company implement the Bell Curve Appraisal System?

Interviewee 2: Firstly, the Bell curve appraisal system was approved by Board of directors
appointed by the government. Thereafter this appraisal system was implemented by MD/CEO by
executive order and then further managers evaluate the performances of their employees

4. Interviewer: How do you evaluate the bell curve appraisal system between?
(1. Very poor; 2. Below average; 3. Average; 4. Above average; 5. Excellent)

Interviewee 2: On Average

5. Interviewer: Why do you think the bell curve appraisal system is vital for your
company?

Interviewee 2:

Yes, It plays a significant role to helps the organization to evenly distribute their employees in

certain types of categories and rate them according to their performances and give rewards to
the best performer to feel them motivated. This leads them to work harder in the company and
their career and succession planning is also strengthened through this approach. And if
the low performer has lacked the competencies and skills then we are providing necessary
training to them in order to improve their performance

6. Interviewer: Does the bell curve depict employees' actual performance? And how?
Interviewee 2: I think the bell curve doesn't depict employees' actual performance because,
during this appraisal system, the managers have to place certain employees in different
categories and then give specific percentages for balancing bell curve distribution. So, many
times employees' performance is not represented truly.

For example

If an employee fulfills all their targets for one year but relative to another employee he is not
performing well, so according to the bell curve appraisal system if he lies in a good category but
his manager ranks him in the average category low relative to the other employee.

Judging performance in some scenarios might be an issue but if you see overall sometimes it
depicts the employee actual performance

7. Interviewer: What problems did company face during the implementation of the bell
curve appraisal system?

Interviewee 2: During the Implementation, the main issue was that to make the people
understand that how the system works that was a slight issue as we put little effort to educate
them properly through proper training and development of employees, and slowly this issue was
resolved

8. Interviewer: Do you think bad rating impact on employees' promotions?

Interviewee 2: Yes, it does impact promotion because in our organization employees' promotion
is based on merit. And each and every employee is judge on the basis of his/her performance like
simply employees are rated in order to represent the performance that employees showed during
the year as well as we look employees potential towards his/her work in organization before
promotion. If employee rating is bad then its mean his/her performance lack in some area so
there is room for development before you get promoted.

Interviewer: Does the bell curve appraisal system reduce the morale of employees? Do they
get unsatisfied?
Interviewee 2: Yes, employees are de-motivated because of the relativity factor. Mostly managers
rate them low but some employees have high expectations because they meets all the targets of a
year, as I mention above that this system place employees in different categories, and assigned
specific percentages, like in our organization, arrangement of Bell curve appraisal system
percentages are: (Very good 20%, Good 60%, Average 15% & Below Average 5%). If
any employee fulfills all the targets of one year and performs well but not relative to
the other employee, so according to the bell curve, he/she become shifted from
the Very Good 20% category to the Good 60% category. This eventually leads them to de-
motivation and sometimes employees think their work is not valuable for the company and

becomes unsatisfied with their job. 

8. Interviewer: What is the impact of bell curve implementation on employees'

performance?

Interviewee 2: There are both positive & negative impact of Bell curve Implementation on
employee performance

Positive Impact:

Once the employees slowly understand how the system works properly and when they
understand the psychology behind it, they gradually know well about how to perform better even
than others as they have knowledge about the fulfillment of targets is important but also they
more focus on other elements like objectives and values of the company, and this will eventually
lead them to certain behavioral changes which helps them to improve their performance. And
they completely understand that how these things as a group effect on their performance so they
become working much harder to achieve their goals 

Negative Impact:

This include de-motivational factors, as employees fulfilled all the targets but his manager was

rated him low because of the relative performance of another employee due to this reason
employees think their input is not valuable and becomes de-motivated and they stop working as
hard as they did before.

9. Interviewer: Does their Organizational Commitment get low or not? Is the attrition
rate high right now?

Interviewee 2: Employees' organizational commitment is not much low due to the fact that

the company gives other benefits too. And the attrition rate is not much high right now.

Interviewer: What are the root causes of these Problems

Interviewee 2: The root causes of these problem are include lack of understanding and somehow
less acceptance of bell curve appraisal system and main cause is that this appraisal system
distribute them in specific type of categories which unintentionally leads managers to the relative
factor which makes employees demotivated.

10. Interviewer: Does the bell curve appraisal system in your company forcibly distributed
employees in 3 categories or not?

Interviewee 2: Not forcibly distributed, the employees of each department are evaluated and
placed in following percentage:

 Very Good 20%,

 Good 60%,
 Average 15%,
 Below Average 5 %

(According this the employees compensation are decided.)

11. Interviewer: Does the bell curve consider observing the performance of employees to
the nearest distribution curve?

Interviewee 2: Sometime yes, due to the relative element

12. Interviewer: Is the bell curve considering a rigid approach for rating employees?
Interviewee 2: Somewhat yes because of equal distribution managers put their employees in 5
categories in order to maintain/balance budget constraints.

13. Interviewer: Is the bell curve avoiding the leniency effect in your organization?

Interviewee 2: Yes sometime biasness also arises but mostly it is based on merit

14. Interviewer: Is the bell curve appraisal system allowing the error of central tendency?

Interviewee 2: To some extend yes because to equalize the distribution you put certain
employees in certain categories

15. Interviewer: Is the bell curve appraisal encouraging a political culture in your
organization?

Interviewee 2: Yes in some cases

16. Interviewer: Does it consider that individual scores relative to the performance of other
employees?

Interviewee 2: Yes (all the details are mention above)

17. Interviewer: As these problems arise at your organization, do you take some steps to
solve it?

Interviewee 2: Yes, before evaluating performance, there are training of both manager &
employees to understand the system that how it works and through proper feedback system we
analyze that what are the problems arises in the organization

18. Interviewer: How do you overcome rater biases in your company?

Interviewee 2: There is a responsibility on manger to overcome rater biases as they have

ownership to take decision in some extend so they know that one round decision on their apart
can effect motivation of employees of their team

As there is a manager who take inputs under their lower manager and then deeply observe it and
make sure all the things through proper discussion before taking any particular decision as well
as remove biasness through transparent culture
19. Interviewer: Do you think there should be any best alternative to the bell curve
method?

Interviewee 2: To be honest we can research on the system but not come up with any particular
system Yet.