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Unit 6: Labour Cost

list to a person and those merits which are found in him are (+) marked while those which Notes
are not in him are marked with (–) sign. Or at times ‘yes’ or ‘no’ is used to entries. If he is
doubtful about a merit, he marks with (?).
This method has the possibility of partiality as evaluator does the work himself. Secondly,
each department or work needs separate forms as nature of job or work, character and
responsibilities have vast differences.
(v) Force Choice Description Method: In this method, employees are divided into groups on
the basis of certain tests. Then, evaluator selects two phrases from the phrases of merits
which contains one more descriptive and other less descriptive.
This is a simple method and is an improvement over the grading procedure. There is no
partiality, but this method is not able to cast directions on the future development of the
worker. At times, evaluator has to take such decisions which he does not prefer.
(vi) Selection of Critical Incident Method: In this method, such specific events are selected
which are related to his job like overcoming with anger at the working time, disinclination
to co-operate, suggestion for improvement in work procedure, prohibition of future
training. After that, these could be weighted in the order of importance and graded.
Job superintendent edits these events while executing the job and sends to personnel
department on the basis of which the personnel department evaluates them.
(vii) Field Review Method: Under this method, evaluator asks the supervisor questions about
the workers working under him and gets his opinion and records it. These are signed by
the supervisor and keep it for future reference as a context.

Advantages of Merit Rating

Merit rating method is the important instrument of personnel management. Its advantages are
as follows:
(i) The scientific basis is available by the merit rating for all persons. On the basis of this
information, their abilities are, comparatively known.
(ii) Because of the merit rating, personnel know their abilities; they try to improve in it. If they
have some defects, they improve and thereby earn more.
(iii) By performance evaluation personnel are developed. Development policies like construction
of promotion lines, transfer, training and their development are most important instrument
by which these programmes are prepared logical and thoughtful.
(iv) Generally, every worker is eager to know the management’s opinion about his work and
ability. A properly planned merit programme gives chances to a person to know about
him and motivates them for development. This increases their mental strength and gets
self-satisfaction.
(v) The main advantage of the merit rating goes to management. They know the abilities of the
persons and on that basis, the management sets right the programme for their promotion,
transfer, forced leave and discharge. It’s service in determining a sound and suitable wage
structure. Appraisals can be used to evaluate the training programmes also.

(vi) By right merit rating, the supervisor knows the efficiency of the personnel working under
him and he knows his weaknesses and how to avoid them, he suggests the management
on one hand and the tries to improve the weaknesses of the workers on the other hand.

(vii) Merit rating is helpful in the placement of the personnel. This means that the personnel
should be placed on the right job. Besides, the workers kept on probation can be decided
at to his abilities so that he may be kept at proper place after probation or be discharged or
by increasing the probation period, necessary improvements be done in him.

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