Advantages
Limitations.
What is Merit Rating ?
According to
is small.
Time consuming.
Grading System:
number of grades.
It is useful only when the group of employees is
large.
Check List Method :
In this method, the rater is given
a set of statements related to the
employee’s performance,
attitude, behavior and
shortcomings.
The rater is asked to tick-mark
either yes or no.
Each yes/no carries certain
points, which when added up,
give final rating of the employee.
Example of checklist :
Questions Yes No
Is the employee hard ×
working ?
Is he regular on the ×
work?
Does he co-operate √
with his superiors?
Does he maintain his √
equipment/machines
well?
Does he obey √
instructions well?
Free Essay Method :
In this method the supervisor writes a report about
performance evaluation.
The employees periodically meet their supervisor
to evaluate the progress of important features of
this system.
Limitation of modern method :
MBO, as a technique of evaluation, may not provide
requirements or employees.
employees.
inefficient workers.
Objective merit rating develops confidence among
employees.
Limitations of Merit Rating :
Halo Effect:
There is a tendency to rate the employee on the basis of one factor
only.
Clarity in Standards:
Each rater may apply his own standards with the result that final
ratings simply cannot be compared. For example, a rater may think
that ‘satisfactory’ rating is better than ‘excellent’.
Leniency or Strictness:
Lenient raters give high ratings whereas strict raters always give low
A supervisor may feel that low ratings may reflect his own weakness in
Central Tendency:
Generally the raters evaluate employees by keeping them in the
Differing Perceptions:
Even if a person tries to be a fairest rater in performance
evaluation, he cannot eliminate bias because of differing
perceptions. Certain unconscious factors such as race, caste, and
creed etc., effect merit rating.
Thank You