This method operates under an assumption that employee performance level conforms to a normal statistical distribution which is a Bell Curve .
Bell Curve assumes that in any organisation only 10% employees are excellent performers , 20% are Good , 40% are average performers , 20 % are below average and left 10 % are usatisfactory performers .
Any Organsiation which selects only good and skillfull performers and retain only them , the use of this method would be unrealistic and possibly v destructive to an employee morale .
The error of central tendency may also occur as the rater resists from placing an employee in the lowest or in highest group .
Difficulties also arise for the rater to explain to the ratee why s/he has been placed in a particulr group .One merit of this method is that it seeks to eliminate the error of liniency .
Bell Curve method is not acceptable to raters and ratees , especially in small groups or when group members are highly skilled .
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