In: Accounting
What are the types of bias shown in the following real-life situations? a) Supervisor gives each of the employees a lower rating than previous supervisors have. b) Supervisor adds negative ratings to an employee to balance out the overall positive review. Explain your answers.
Merit rating / Performance appraisal
Merit rating is also known as performance appraisal. Merit rating is the
systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development.
Objectives of Merit rating
1. To maintain records in order to determine compensation
packages, wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place
right men on right job.
3. To maintain and assess the potential present in a person for
further growth and development.
4. To provide a feedback to employees regarding their performance
and related status.
5. To provide a feedback to employees regarding their performance
and related status.
6. It serves as a basis for influencing working habits of the
employees.
7. To review and retain the promotional and other training
programmes.
The objectives of merit rating fall in two categories:
Promotion, Compensation, Employees Development, Selection Validation, Motivation etc. are the administrative objective under merit rating.
Conclusion
a.Through performance appraisal, the employers can
understand and accept skills of subordinates.
b. The subordinates can also understand and create a trust and
confidence in superiors.
c. It also helps in maintaining cordial and congenial labour
management relationship.
d. It develops the spirit of work and boosts the morale of
employees.