MERIT RATING
NAME ROLL NO.
SIDDESH TALEKAR 57
DEPARTMENT OF MECHANICAL ENGINEERING
ST. JOHN COLLEGE OF ENGINEERING & MANAGEMENT
UNIVERSITY OF MUMBAI
2018-2019
INTRODUCTION
A merit rating is a score that each state assigns to employers based on their
employment stability and employee turnover.
Merit rating can be define as a systematic evaluation of an employee’s
performance on the job in terms of the requirement of the job.
Merit rating systematically evaluate the fitness of the employee for a given
job in terms of assigned factor.
Benefits of Merit Rating
Merit rating is a good device to increase industrial productivity and to reduce hostility between
employees.
Helps to take decisions about incentives, increment to be given to worker.
Increase consciousness of employees and introduces competitive spirit in them.
Helps in pointing out employees strengths and weaknesses.
Provides a sound basis in making decision for promotion, transfer etc
Requirements of good Merit Rating System
Cover all employees of an organization.
Proper education and training should be given to raters to enable them to
make correct appraisal.
The merit rating system should be revived periodically.
It should focus on job related behaviour only.
Methods of Merit Ratings
1. Ranking Method
This is simplest method of performance evaluation.
Employees are ranked from best to worst based on their performance.
It does not indicates strength or weaknesses of employees.
2. Paired comparison method
In this rater compares each employee in a group with all remaining employees.
Comparison is done on the basis of one factor ‘ability to perform the job’.
This becomes difficult to compare if the group is large.
3. Graphic rating scale method
It is a chart indicating the different
degrees of various factors on the
basis of which employees are
related.
4. Forced choice method
In this method, for each trait or
behaviour number of statements are given and rater is required to select only
one statement which describe the particular behaviour of the employee being
evaluated.
This method is called forced choice because the rater is forced to check only one statement.
5. Check list method
In this list made up of series of questions which are concerned about the important aspects of
employees performance on the job.
The process of rating simply consist of checking those question concerned to rate and answering the
question in “YES” or “NO”.
6. Critical incidents method
In this method, employee are rated on the basis of their behaviour during an critical incident.
Employee showing desirable behaviour are given highest ranking.
Advantages of Merit Rating
It provides a basis for decisions like promotion, demotion, transfer or termination of
employees. Better persons are selected for promotion.
It helps in distinguishing between efficient and inefficient workers. In this way, it
reveals the defects in the selection procedure.
Workers may be given increase in pay if their performance is good.
It points out the weakness of the employees
Limitations of Merit Rating
1. Influence of Higher-Paid Jobs:
Usually there is a tendency to give high rating to a person who is doing
the highly paid job.
2. Leniency or Strictness:
Lenient raters give high ratings where as strict raters always give low
ratings.
There is a big difference of ratings between two raters.
3. Halo Effect:
There is a tendency to rate the employee on the basis of one factor only. It is also
known as ‘blending tendency’.
If the rater finds that the man is good in one factor he may rate him good in all
other factors.
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