Managing performance better: advent of a new appraisal system at Infosys Limited

Purpose This paper aims to discuss the importance and impact of performance appraisals on morale and productivity of employees while describing one of the most popular tools for appraisals, the bell curve. It draws attention to how owing to the various flaws of the bell curve system, few organizations, such as Infosys, are now adopting alternative systems of appraisals. Design/methodology/approach This paper describes various advantages and disadvantages of the bell curve in detail. It also describes iCount, an appraisal system based on open ranking that has been adopted by Infosys, and discusses the expected advantages and disadvantages of the new system vis-à-vis the bell curve. Findings Organizations are now questioning the effectiveness of the bell curve, as a performance management tool, in light of its drawbacks. Infosys Limited has, therefore, moved to an alternative system named iCount, which is expected to be more effective and to enhance the morale of its employees. Originality/value This paper scrutinizes the bell curve approach to performance appraisals, its premise, distinct advantages, and adverse impact on employees, that have led Infosys Limited to move on to a feedback-based system.