The document discusses job evaluation and merit rating. It defines job evaluation as a systematic process for determining the worth of jobs based on factors like skills, effort, and responsibilities. This allows for establishing equitable pay rates. Merit rating is defined as the periodic evaluation of an employee's performance against factors like quality, quantity, cooperation. It provides the basis for decisions around pay raises, promotions, and transfers. The document provides examples of forms used for merit rating employees and distinguishes job evaluation which rates the job from merit rating which evaluates individual employee performance.

1. JOB EVALUATION AND MERIT RATING
Dr. NGPASC
COIMBATORE | INDIA
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100
RAJAKRISHNAN M
Assistant Professor in Commerce CA

2. Dr. NGPASC
COIMBATORE | INDIA
Job Evaluation
It is a systematic and orderly
process of determining the
worth of a job in relation to
other jobs.
The objective of this process
is to determine the correct
rate of pay.
It is therefore not the same
as job analysis. Rather it
follows the job analysis
process, which provides the
basic data to be evaluated.

3. Dr. NGPASC
COIMBATORE | INDIA
Objectives of job evaluation
Establish a standard procedure for determining the relative worth of each job in an
organization;
Ensure equitable wage for a job and reasonable wage differentials between different jobs
in a hierarchical organization;
Determine the rate of pay for each job which is fair and equitable with relation to other
jobs in the plant, community or industry;
Eliminate wage inequalities;
Use as a basis for fixing incentives and different bonus plans;

4. Dr. NGPASC
COIMBATORE | INDIA
Objectives of job evaluation
Promote a fair and accurate consideration of all employees for
advancement and transfer;
Provide information for work organization, employees selection,
placement, training and other similar purposes;
Provide a benchmark for making career planning for the employees
in the organization and;
Ensure that like wages are paid to all qualified employees for like
work.

5. Dr. NGPASC
COIMBATORE | INDIA
Merit Rating
It is a systematic, periodic and, so far as humanly
possible, an impartial rating of an employee’s
excellence in matters pertaining to his present job
and to his potentialities for a job.

6. Dr. NGPASC
COIMBATORE | INDIA
A sample merit rating form

7. Dr. NGPASC
COIMBATORE | INDIA
A sample merit rating form

8. Dr. NGPASC
COIMBATORE | INDIA
A sample merit rating form

9. Dr. NGPASC
COIMBATORE | INDIA
A sample merit rating form

10. Dr. NGPASC
COIMBATORE | INDIA
A sample merit rating form

11. Dr. NGPASC
COIMBATORE | INDIA
A sample merit rating form

12. Dr. NGPASC
COIMBATORE | INDIA
Distinction between Merit Rating and Job Evaluation
Job Evaluation Merit Ratings
1. It rates the occupation to determine
job differentials.
It gauges employee performance to
determine his relative contribution to
the job.
2. The object of it is to fix a fair base
wage rate.
Its object is to decide on any
differential pay over and above the
base wage.
3. It is not concerned with the
promotion and transfer of employees.
It forms the basis for promotion and
transfer of employees.

13. Dr. NGPASC
COIMBATORE | INDIA
Objectives of Merit Rating
To serve as a basis for pay adjustments when the job rate is not fixed.
To serve as a basic for special rewards such as a share in profit and periodic bonuses.
To determine qualifications for the assignment of work.
To determine the promotional qualifications.
To remove the unfits and misfits.
To determine who should be retained when work is slack.
To select candidates for special training.
To assist in the development of employees by finding out their talents and weaknesses.

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