Companies often use a Bell Curve approach to measure performance of various aspects of the business, such as employee performance. A histogram is a statistical concept and according to Wikipedia it is defined as “a graphical distribution of the numerical data”. A histogram is made of several bins and a bin can be considered a range of values or a benchmark.
As part of this process, we have to divide the entire range into multiple bins and the range should be unique and continuous. Our grades in high school (i.e. A, B, C, D, E, F) can be considered an individual bin. If a teacher plots the student marks across the grades (bins) in a bar chart it sometimes follows a bell shaped pattern with a mix of high grade, medium grade and low grade students which could be used for assessing students. The same could be applied at company level by plotting an employee performance metric across bins to understand and assess employees.
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