In: Accounting
Performance Measure Standards. How can we use raters to measure overall performance and how do we establish the ratings typically.
Rating can be used to judge how a particular employee is performing in comparison to the set standard of performance
In a rating aapproach, analyst assess the performance of the worker and assign a value to the work performed by him which has the same basis as to the standard set for performance. If the value assigned to his performance exceeds the standard value expected from him then his performance is said to be satisfactory and generally any reward arrangement is made for such an employee in order to motivate and encourage him to deliver same sort of performance in future as well
But if the value assigned to the person on the basis of work done by him legs behind the standard set for performance than any penal action is taken against such person. That's how system of rating works.
Ratings are generally established on the basis of previous experience of the work which is being performed. Also for setting rating various factors need to be considered which includes time period to be taken to complete the work, expected level of quality which is to be maintained while doing the job, complexity issued relating to the job etc. After analyzing all these factors we established rating standards.