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Merit Rating
Evaluation of individual merits of the employees is known as merit rating. Systematic analysis & classification of jobs on the basis of their characteristics is defined as job evaluation whereas the evaluation of the merits of the workers & on the basis of that, the classification of the workers is known as merit rating.

By keeping the performance records of every worker & by assessing their performances in terms of some norms or standards, merit rating is done by organization. The objects of merit rating are:

  • for each individual worker, assessment of the standard of performance

  • providing a basis for rewarding for high merit without detailed work study being applied

  • providing a basis for determining the remuneration of the indirect workers, the performances of whom cannot be easily determined

  • choosing suitable worker for a job; job evaluation mentions the job requirement of the worker, while merit rating mentions what qualities the worker should possesses. The selection will be perfect if these two fit in each other

  • providing basis for increment, promotion etc

  • finding out the abilities & defects of each worker

  • improving labour relations & reducing labour turnover.
The limitations of merit rating are:
  • labour unrest may arise due to wrong rating

  • there may not be any relevancy of the factors considered for merit rating

  • previous records of the employees may influence the rating & thereby justice may be lost

  • employees may oppose the rating or may not recognize the same

  • workers may not be satisfied with the incentives allowed on the basis of merit rating
For merit rating purpose, the following factors may be usually examined in the employee : - Attendance, discipline, co-operation, knowledge, skill, experience, aptitude, sense of responsibility & judgment, quantity & quality of output etc.

Work Study:

Work study is an analytical tool which is used for improvement of productivity & for providing a basis for incentive plans for wage payments. Work study aims at improving performance within an operation through material usage reduction, savings in time, improvement of quality etc. Two related techniques, namely, method study & time study (i.e. work measurement), have been combined into work study, in order to fulfill the objectives.

Method Study:

Method study is a systematic procedure to analyze the work for the purpose of eliminating unnecessary operations, & for arranging the essential operations in the best possible order, so that the working method can be standardized. The method study shall have the following

steps for the purpose of achieving these objectives:

  • The details of the existing methods of work have to be taken.

  • Detailed analysis of the existing methods of work as well as the alternative methods, need to be made.

  • The unnecessary operations & movements have to be eliminated & the essential ones have to be arranged in the best order; the simplification of work & better utilization of the facilities available has to be kept in mind. Motion study is needed for elimination of unnecessary operations & movements. Thus motion study is included in work study also. The most scientific & simple way of performing a work by eliminating the unnecessary & wasteful movements, is established in course of motion study & thereby fatigue is reduced.
Time Study:

Procedure of fixing standard time for performing a work or operation is referred to as time study. By the following steps, standard time is fixed:

  • The entire job or operation has to be broken into constituent elements.

  • The measurement of the time taken by a qualified average worker for performing each element under normal conditions has to be done by instruments like, stop watch etc.

  • For each element of fatigue, personal needs, interference etc., due allowances have to be given to the above time & also allowance have to given for incentive.

  • Standard time to be allowed for the job or operation is represented by the total time obtained in 'c' (i.e. after giving allowances).

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