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Explain the limitations of Merit rating.
Posts: 3,285
Threads: 501
Joined: Sep 2010
(1) If merit rater is influenced by ratee's one or two outstandingly good or bad performances accordingly or sometimes the rater's judgement is influenced by work team or informal group with which the subordinate associates. If the group is not liked or very much liked by the rater, it will affect the rating of the subordinate.
(2) The Manager sets the standard against which he compares the subordinates because standards are difficult to define in measurable or objective terms. Ambiguity, vagueness and generality of criteria are difficult hurdles to overcome.
(3) Employees who are rated better or inefficient, are not rewarded accordingly and therefore, they feel frustrated and their morale goes down.
(4) Merit-rating will be inaccurate and difficult to appraise the personnel in the right perspective if the rater is biased or he does not have adequate information about job and employees and full cooperation of management and subordinates.
