MITCO

A company, by the name MITCO, has its employees rated by supervisors by means of graphic scale. The qualities taken into account are performance at work, responsibility, dependability, community activity, initiative, regularity and punctuality and potentiality to develop. The ratings are discussed with the employees and are used to counsel them, to make promotions and salary adjustments and as criteria for evaluating sources, methods of selection, and training. Recently, however, three of the Company's employees, who have not been given annual salary increment due to their comparatively low ratings, have met the Chairman to express their dissatisfaction with the ratings they have received. They have argued that their ratings are not true indicators of their qualification or performance. They insist that "Community activity" is not

properly a part of their job and that what they do off-the-job is none of the employer's business. They wanted that employees should organise a union and demand that salary increases be automatic. The above experience convinced the top officers that rating was a dangerous source of friction and that its disadvantages outweighed its advantages.

Questions :

(a) Placing yourself in the role of Personnel Manager, prepare

Memorandum for possible submission to the Chairman outlining the

Importance of ratings and suggesting ways of handling problems

Arising out of ratings.

(b) Prepare a merit-rating Performa which you feel would be ideal to

Appraise the merit of non-supervisory staff.