Merit rating aims at evaluating the performance of workers. Main objective of merit rating is to reward employee on the basis of efficiency and merit. Merit rating brings out the comparative worth of workers. The traits generally considered for determining merit and worth of workers are as under:
1. Education Qualification and knowledge
2. Skill and experience
3. Attitude to the work
4. Quality of work done
5. Efficiency
6. Regularity
7. Integrity
8. Reliability
9. Qualities like leadership, initiative, self confidence and sense of judgment
10. Discipline
11. Cooperation
The above traits are allotted with points and total points scored on all traits determine the worth of workers. The employees may be rated individually as per the pints they score and they may be put in groups based on their common scores of points.
Importance of Merit Rating: Merit is a valuable tool considered to be important for human resource measurement. Merit rating has the following advantages:
1. It helps to know the individual worker’s worth and traits; this helps the supervisor to assign the tasks in which the worker is proficient.
2. It points out traits in which the workers are not proficient. The workers will have an opportunity to improve by suitable training.
3. It helps in increasing wages and promotion opportunities.
4. It helps to stimulate the self-confidence of workers as it recognizes the merit and worth of workers.