1.

Too Rigid

Sometimes managers need to put employees in specific gradients just for the sake of bell curve
requirements. This happens more often when the teams are small.

2.Loss of morale

The bell curve appraisal creates anxiety in the mind of employees who may worry about the
possibility of an exit during tough job market conditions.

This may lead to further deterioration of job performance

3. Not suitable for small companies-

The performance review in bell curve is not suitable for small companies where the number of
employees is less than 150.

With fewer employees, the categorization cannot be done properly, and the results are often
erroneous.

4. Great performers remain average

An employee must be great in his role, but according to the curve, he will be in an average position
as it considers all other employees together.

This way, great performers remain average while the average performers might end up in a better
position. It leads to an unfair measurement of performance, and employees might resent the
functioning of the review system.

Generic view irrespective of the department

The overall performance of an employee should be measurable on an individual basis. When you
compare the performance rating of the employees, you considerably remove the basic deciding
factors- that is the department, the role, and the daily tasks of the employee