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. DischargePersonnel 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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