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Human Resources Management - HRM-Systems Perspective

MERIT RATING - HRM-Systems Perspective

   Posted On :  12.06.2018 01:11 am

It is very well known that the workers differ in their abilities, skills, knowledge and aptitudes.

MERIT RATING
 
It is very well known that the workers differ in their abilities, skills, knowledge and aptitudes. By proper education and training these differences may become small. Yet these differences remain. It is necessary for management to know these differences so as to identify special skills and growth potential of their employees to occupy higher positions of responsibilities through promotions. It is also necessary to know these differences so that each is paid according to his merits. Higher wages are paid to employees who perform continuously better. In order to identify these differences, performance evaluation is needed. This process of performance evaluation of workers is called merit rating. Thus ‘merit rating’ may be defined as “a systematic, periodic and objective performance evaluation of labour in order to recognize and reward their contributions to the organization, and also identify their potential to hold higher level appointments and jobs”.
 

Objectives of Merit Rating


1. Administrative

2. Personnel Development

Administrative objectives

1. Wage increase
 
2. Promotion
 
3. Selection and special assignment
 
4. Training
 
5. Transfer
 
6. Discharge

Personnel Development

 
1. Merit rating reveals deficiencies and gives opportunity to remove these defects.
 
2. Helps motivation by knowing one’s own performance and achievements
 
3. Encourages persons to do better by getting recognition and reward of his good performance
 
4. Encourages a spirit of competitiveness to perform better.
 
5. Opportunity for self-development.
 

 

Tags : Human Resources Management - HRM-Systems Perspective
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