Human resource evaluation: Merit rating is a method for determining the…

Introduction / Context:
Merit rating and job evaluation are distinct. Merit rating assesses people, whereas job evaluation assesses jobs. Clarifying this distinction is vital for fair wage administration, promotion decisions, and performance-based incentives.

Given Data / Assumptions:

• Objective criteria such as skill, effort, responsibility, and working conditions are defined.
• Rating scales or point systems calibrated for roles.
• Merit rating feeds HR decisions; job evaluation feeds wage structure design.

Concept / Approach:
Merit rating evaluates an individual employee’s performance and traits relative to job requirements, producing a merit score for raises or bonuses. Job evaluation, in contrast, determines the relative worth of jobs to establish equitable pay grades. Conflating the two leads to inequity and disputes.

Step-by-Step Solution:

Verification / Alternative check:
Calibration meetings and rater training reduce bias; correlation of merit ratings with KPIs validates the system’s effectiveness.

Why Other Options Are Wrong:
(a) describes job evaluation; (c) is asset accounting; (d) is production reporting; (e) is time study, unrelated to merit appraisal.

Common Pitfalls:
Halo effect and rater bias; overreliance on subjective traits; failing to link ratings to development actions.

Final Answer:
worker’s performance and relative merit on the job