Merit rating is the method used for calculating the worthiness of a person performance in their job. Another name for merit rating is performance appraisal. Merit rating evaluates, control & reviews the performance of worker. It used for deciding the wage rates which needs to be paid to worker.

Benefits:

a. Helpful in providing a reward to the person.

b. To identified the potential of worker to perform the particular job.

c. Helpful to decide the training needs for individual worker.

d. Provides motivation to worker to perform better

Types of Merit Rating:

a. Ranking method

b. Paired comparison method

c. Forced Choice method

d. Check List method

e. Scale Plan