Industrial Psychology

MERIT-RATING
TECHNIQUE

Wendell A. Ederon
BSIE-IV
 MERIT-RATING APPROACH

A worker’s performance level is often judged through

the procedure known as merit-rating
 Intelligence
Personality Informal
Humor
Judgement
Agreeableness
The likes

INCORRECT
JUDGMENT = Decisions
Reasons for Incorrect Judgment:

1. Process is subjective
2. Process is unstandardized

We judge on the basis of false and misleading criteria, on

superficial and meaningless factors
 Judgment in Merit Rating

1.Formal
2.Specific
3.Relative criteria are established to serve ass
standard for comparison

The fallible human being who are raters can still inject their
biases and prejudices into the judgment process, but that is not
the fault of the technique. Merit Rating is designed to be an
objective evaluation of the performance compared with
established standards
 Merit Rating Technique

1. Rating Technique
2. Ranking Technique
3. Paired Comparisson
4. Forced Distribution
5. Forced Choice
6. Behaviorally Anchored Rating Scale (BARS)
7. Behavioral Observation Scale (BOS)
8. Management by Objectives ( MBO)
 Rating Technique
-Most frequently used method of performance appraisal

Popular for 2 reasons:

1. They are relatively easy to construct

2. They attempts to be as objective as possible
 Characteristics of Rating Technique

1. A number of performance dimensions are generated

2. The dimensions are applicable to a wide variety of jobs
3. Absolute standards are developed to represent different
rules of performance
 Rating Technique
UNSATISFACTORY QUESTIONABLE SATISFACTORY OUTSTANDING
(Needs to improve (Need some (Meets normal (Exceeds normal
substancially) improvement) expectation) performance)

Dimensions

Quality of
work
Quantity of
work
Initiative in
work
Promotability
to the nextt
level
 Ranking System

intended to evaluate an employee by

comparing him or her with all of the other
employees in similar positions within a company.
The result is some indication of where the
employee lies, in percentage terms, relative to
his or her peers.
Ranking System
 Difference between Rating and Ranking System

RANKING:
Employees are compared with all the others in the unit-section

RATING:
Compares the individual with his or her own past performance
or a company standard

Ranking is not directed as Rating

 Advantage of Ranking System

-Its simplicity

No elaborative forms or complicated instructions are

required. Ranking can be accomplished quickly and is usually
accepted by supervisors as a routine sort of task to perform
 Ranking Method has Limitations
1. When working with a large number of employees
2. Supplies much less evaluative information on each employee
than rating does.
3. Difficult to indicate similarities in efficiency among workers
4. Magnitude of differences between the ranks. These differences
may appear equal but may not be so in practice

These limitation make the ranking method a crude measure of performance appraisal
at best. It should be applied where only a small number or workers are involved and
where little Information is desired beyond an indication of relative standing of the
workers as a unit.