Merit Rating . understand methods of merit rating .
In this video I will discuss Merit Rating to measure the performance of employees .
Everything you need to know about merit rating. Merit rating is the systematic evaluation of the performance of an employee on the job in terms of the requirements of the job.
It may also be ascertained by comparing the superiority of an employee over others. Quantity and quality of work, attendance, obedience, skill, desire to learn, loyalty, family background, personality, etc. are some of the factors that are taken into consideration in assessing merit.
According to dictionary, merit rating is defined as, “employee rating achieved through a periodic employee evaluation system, often used as the basis for pay increases and/or promotion”.
What is Merit Rating – Meaning
Merit rating is the systematic evaluation of the performance of an employee on the job in terms of the requirements of the job. It may also be ascertained by comparing the superiority of an employee over others. Quantity and quality of work, attendance, obedience, skill, desire to learn, loyalty, family background, personality, etc. are some of the factors that are taken into consideration in assessing merit.
The Objective of Merit Rating:
1. For each individual worker, assessment of the standard of performance,
2. Providing a basis for rewarding for high merit without detailed work study being applied,
Method Of Merit Rating
Ranking:
This is the oldest and simplest method. This is also known as “Paired comparison method.” In this method the employee is not treated separately from his job. One person is compared with the other. This separates the efficient from the inefficient but this is not practical as all persons have separate qualities. If a person is efficient in one job, the other is efficient for the other; hence comparison is difficult between the two. To solve the problem persons are evaluated in pairs.
Thirdly, there is no basis for serial assessment.
. Rating Scale Method:
The steps involved in Rating Scale method are:
(a) Define the merit factors (i.e., standards) to rate the employees.
2. Grading:
Under this method, the performance of the employees is evaluated against certain grades such as poor, good, very good, excellent or outstanding, satisfactory or unsatisfactory. The grade which describes his performance can be allocated to him.
3. Graphic Scales:
Under this method, performance of an employee is evaluated against certain specific factors. Five degrees or scales are established for each factor and each degree is defined. This method is most widely used in merit rating and is also the oldest.
Man-To-Man Comparison:
This method resembles with the factor-comparison method of job- evaluation. Under this method certain Key personnel are selected for each factor .
5. Check List:
In order to reduce bias or prejudice of the rater, the merit rating under this method is actually done by the HR Department. The supervisor simply reports the. Performance of the employee by putting ‘Yes’ or ‘No’ against a series of descriptive phrases.
6. Forced Choice Description:
Usually the raters try to rate the employees in the ‘average’ category because it does not require further explanation. Under this method, the rate is forced to select a statement from a pair of statements though both may be applicable or un applicable to him.
7. Selection of Critical Incidents:
The act or conduct of an employee during crucial or critical circumstances is recorded by the rater. These critical incidents are carefully analysed and the behaviour or qualities of the employees are carefully rated.
8. Forced Distribution Method:
Where there are a large number of employees, the rater may be asked to rate all the employees as follows:
Poor 10%Average 25%Fair 35%Good 20%Excellent 10%
Advantages of Merit Rating:
Besides a few mentioned under objectives, other advantages of Merit Rating are as listed below:
(1) Merit rating develops the ability of a rater,
(2) Meritorious employees are encouraged,
(3) Employee-employer relations improve.
(4) It is easy to deal with the unions as merit rating is a systematic method to rate the employees.
(5) It involves lesser calculations as compared to other incentive schemes.
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