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Define Performance appraisal/ personnel rating/ merit-rating/ performance evaluation.
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Performance appraisal, personnel rating merit-rating or performance evaluation is one of the most important functions of personnel management! People differ in their abilities and aptitudes. The personnel management should know these differences to develop various development programmes in the organisation to have an efficient work force. Merit rating technique has been evolved to know the relative worth of the employee-quantitatively and qualitatively -on the job, in comparison to other fellow workers. Merit rating is used for measuring the merit or performance of an employee and comparing it with that of others in the same group. According to Flippo — "Merit-rating 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.
According to Denyer, "Merit rating is an assessment according to individual ability which may be rewarded by additional payments to the ordinary rates of pay for the different job". According to Yoder, performance appraisal refers to all formal procedures used in working organisations to evaluate personalities and contributions and potential of group members". Thus merit-rating is a systematic evaluation by the supervisor or some qualified person of an individual worker's performance. The process of merit-rating starts at the time of recruitment and continues throughout the life of an employee in an organisation.
