Merit rating

 

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.

 

What is Merit Rating – Objectives and Importance

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,

3. Providing a basis for determining the remuneration of the indirect workers, the performances of whom cannot be easily determined,

4. Choosing suitable worker for a job; job evaluation mentions the job requirement of the worker, while merit-rating mentions what qualities the worker should possesses. The selection will be perfect if these two fit in each other,

5. Providing basis for increment, promotion etc.,

6. Finding out the abilities and defects of each worker, and

7. Improving labour relations and reducing labour turnover.

 

Importance of Merit Rating:

Merit rating is helpful to the management in the following respects:

(i) It helps in ascertaining the suitability of the worker for a particular job. The objective is achieved by linking merit rating with job evaluation.

(ii) It helps in ascertaining an employee’s merit for grant of promotion, increment etc.,

(iii) It helps in introducing a system for incentive, wage payment and simplification of the wage structure,

(iv) It analyses the worker’s defects and brings out the strong points and special abilities.

 

Job evaluation and merit rating are compared in the following ways:

Job Evaluation:

1. It evaluates a job or work.

2. It is for the purpose of fixing a base-wage for a job.

3. It is independent of operator or worker. It is impersonal in nature.

4. Useful for decision regarding wage and salary administration, skills match, etc.

5. It considers requirement of job.

Merit Rating:

1. It evaluates a worker.

2. It is for the purpose of deciding reward for exceptional merit of worker.

3. It is independent of job. It is impersonal in nature.

4. Useful for decision regarding training, placement, promotion, counselling etc.

5. It considers ability and performance of individual.

 

What is Merit Rating – Requisites for an Effective Merit Rating Programme

Merit rating programme is a very important tool and technique of personnel management. But care and caution are essential in the introduction of this technique.

The following care of requisites be observed before introducing an effective merit rating programme:

(1) Analysis of Jobs and Responsibility:

The first step of merit rating is the assessment of the person’s jobs and responsibilities. For reaching of rights and responsibilities one should go through jobs first.

(2) Ascertainment of the Standard of Job Execution:

While ascertaining the standard employees the supervisors should be consulted. Further, one should also study the evaluation programmes of their industrial concerns and the special facts of those programmes.

(3) To Look on Job Execution:

Evaluator must be fully trained for this purpose. Then alone, he can rightly evaluate the person.

(4) Measure of Ability:

After preparing the different persons and jobs, different statements, descriptions and job analysis, necessary information’s are obtained for the person, so that their measure of ability by any one method may be done and their future progress be estimated.

(5) Labour Management Discussions:

Further, he discusses with the labour and supervisor and he classifies on the evaluation strata. On the basis of field report on the occasions, supervisor guides and trains the personnel.

(6) Formulation of Scheme of the Development of Employees:

Supervisor prepares the evaluation report of work of a subordinate employee. Supervisor submits his report to ‘Report committee’ and the committee reviews it. Supervisor for higher official on the basis of that evaluation talks to the employee in private, afterwards higher official and supervisor both jointly plan the scheme for job amendments of the employee.

 

(7) Review of the Progress:

At times progress is subject to review and revaluation; employee should be recognised necessarily for job execution and objectives he assessed.

K.Dhayan (21UCM013)

V.Gokulvasu (21UCM021)

III B.Com