Job Evaluation and Merit Rating

Lecture 3.2

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.2| Page

 AGENDUM
1. Attendance
2. Assessing the Video Viewing + Oral Test - MCQ – in the presentation) -
(Approximately 6-10 Questions). Attendance Order Link Internal Mark - 10
Minutes.
3. Review of Previous Class Topic – 3 Minutes
4. Today’s Class Topic (30 Minutes)
5. Mid-Class Assessment -1 : Approximately 5 MCQ Questions. (Repeat the Class if
Not Satisfied with Students Answers) – 5 Minutes
6. Today’s Class Topic (30 Minutes)
7. Mid-Class Assessment – 2 : Approximately 5 MCQ Questions. (Repeat the Class
if Not Satisfied with the students Answers) - 5 Minutes
8. Class Work – Applications - Problem Solving – 10 minuets
9. Homework – Assignment + Discussing the Solution for Assignment – 10 to 12
Minutes
10. Intro of “ Next Topic ” 5 Minutes

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 Attendance

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 Assessing the Video Viewing
1. HRM function does not involve _____________
A. Recruitment
B. Cost control
C. Selection
D. Training
2. Job evaluation is a technique which aims at
__________.
A. Establishing fair and equitable pay structure
B. Analysing requirement of updating technology
C. Assessing safety requirement of jobs
D. Improving productivity

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 3. The following is not a job evaluation
method_______
A. Factor comparison method
B. Point Method
C. Ranking method
D. Assessment method
4. Job Evaluation tries to make a
systematic comparison between ______
A. Workers
B. Jobs
C. Machines
D. Departments

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 Review of Previous Class Topic

• Performance Appraisal

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 Topic Outcome

1. Identify the activities involved in

job evaluation.
2. Discuss the purposes of merit
rating.

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 JOB EVALUATION

Definition:- The process of determining the relative

worth of jobs, ranking and grading them by
comparing the duties responsibilities, requirements
like skill knowledge of a job with other jobs with a
view to fix compensation payable to concerned-job
holders.

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 Objectives of job evaluation
• To gather data and information relating to job
description, job specification and employee
specification of various jobs in organization.
• To compare the duties responsibilities and
demands of a job either that of other jobs.
• To determine the hierarchy and place of
various jobs in an organization.
• To determine ranks or grade of various jobs.
• To ensure fair and equitable wages on basis
of relative worth or value of jobs.
• To minimize wage discrimination based on
age, sex, region etc.,

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 Question for Attendance

• What is job evaluation?

• What the techniques used for job

evaluation

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 Principles of job evaluation programme
Job evaluation programme should be implemented
carefully, the following are the principles
• Rate the job but not the employee. Rate the elements
on the basis of job demands.
• The elements selected for rating should be easily
understood.
• Elements should be defined clearly and properly
selected.
• Employees concerned and supervisors should be
educated and convinced about the programme.
• Supervisors should be encouraged to participate in
rating the jobs.
• Secure employee cooperation by encouraging them to
participate in the rating programme.
• Discuss with the supervisors and employees about
rating but not about assigning money to values to that
points.

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 Try yourself

• Create a performance appraisal

form for different category of
employees.

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 Process of Job Evaluation
1.Gaining Acceptance
2. Constituting Job Evaluation
Committee
3. Selecting Jobs to be Evaluated
4. Describing about the jobs.
5. Selecting the Method of Evaluation
6. Fixing the Remuneration
7. Weighted Job Factors
8. Periodic Review
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 Merit Rating
Merit Rating assesses the merit of the
person doing the job. Merit rating
determines the extent to which an
employee meets job requirements. Job
evaluation and Merit Rating are two
complementary aspects of a sound
personnel policy.
The first, determines a suitable wage
structure for the job and the second (i.e.,
merit rating), decides the rewards an
employee should get in addition to his
wages, depending upon his merits.

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 Objects of Merit Rating
1.To assess the work of employees in relation to their
job requirements.
2. To consider employees/workers for promotions,
transfer, layoffs etc.
3. To assess the good and bad points in working of
employees and then making suggestions for
improvement.
4. To help in wage and salary administrations and
taking decisions about incentives and increments to
be given to the workers.
5. To evaluate skill and training capabilities of
employees and helping in planning suitable training
and development programmes for workers.
6. To know the problems faced by workers while
doing various jobs.
7. To provide a basis for comparison to segregate
efficient and inefficient workers.

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 Process of Merit Rating

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 (i) Establishing Standards
The employees/workers will have to be
rated against the standards set for their
performance. There should be some base
on which one may categorize that the
performance of a person is good, average,
bad etc.
The standards may be in terms of quantity
and quality of production in case of
workers; personality traits like leadership,
initiative, imagination in case of
executives, files cleared in case of office
staff, etc. These standards will help in
setting yardsticks for evaluating
performance of the people concerned.
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 (ii) Communicating Standards to Workers
The standards set for performance
should be communicated to the
employees. They should know what is
expected from them. When the
standards are made known to
employees, they will try to achieve their
performance equal or above them.

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 (iii). Measuring Actual Performance
The next step in evaluation process is to
measure actual performance of
employees. The performance may be
measured through personal
observation, statistical reports, oral
reports, written reports, received from
the executives concerned.

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 (iv) Comparing Actual with Standards

The actual performance is compared to

the standards set earlier for finding out
the standing of workers. The employee
is evaluated and judged by his potential
for growth and advancement. Deviations
in performance are also recorded at this
stage.

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 (v) Discussing Reports with Workers

The assessment reports are periodically

discussed with concerned
employees/workers. The weak points,
good points and difficulties are
indicated for helping employees to
improve their performance.

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 (Vi)Taking Corrective Action
Evaluation process will be useful only
when corrective action is taken on the
basis of reports. One corrective action
may be in the form of advice,
counselling, warning etc. Other action
may be in the form of additional
training, refresher courses, delegation of
more authority, special assignments,
coaching etc. These actions will be
useful in helping employees to improve
their future performance.

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 Mid Assessment
1. In __________ basis of promotion an
employees’ competence is taken into
consideration.
a) Merit b) Seniority
c) Joint d) None of the above
2. Seniority and _________ are the two
main bases of problem.
a) Merit b) demerit
c) job description d) job analysis

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 3. Define merit rating?
4. What are the objectives of merit
rating?
5. What are the corrective
action____________.

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 Problem to be solved

1. Activity based on how employee

works under different environment
i.e under pressure through
practical training

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 Solutions outline

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 Next topic for Lect. 3.3

• Promotion

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