Sample Merit-Based Methodology for Measuring Performance

Merit-Based Methodology for Measuring Performance

Merit based approach is the single most effective methodology for measuring the performance of individual employees. This methodology categorizes a small percentage as high ranking, the majority are ranked at the middle while a few are ranked lowest. This approach is best suit where the organization is pursuing free agent human resource (HR) strategy and it is the most effective in the case where the business’ success is based on the competitiveness of the product or service, that requires  one to be sagacious in what they do or that employees stretch further and work extra hard to excel in what they are assigned to do. For instance, in the case of marketing a product, the marketers are individually assesse based on how they strategize to get more customers purchasing a product and even getting customer satisfaction.

Merit-based approach is essential for individual and organizational growth. By enhancing individual performance of the employees, the overall performance of the organization also improves. Different parameters that determine the employees’ job performance are critically looked at and improve where they bought to. For instance, in order to have improve performance job knowledge among the workers’ matter, this depends on whether they have the mastery to have the best task performance. Where individuals are identified to lack the requisite skill the necessary step of getting them trained is take and this is sustainable for long as such skill will be used time and again. Other aspects such as dependability, versatility and co-operation are natured at individual level. This soft skill increase the efficiency and the overall citizen performance translating to improved organizational performance.

In conclusion, the merit based approach is structured evaluation of an individual with regard to their job performance, therefore establishing the potential of development; enhancing present performance while planning for the future too.

This approach is sustainable and suitable for both the management and the employees through;

  1. Initiating individual performance based conversation-effective performance management calls for dialogue between the employee and the HR. this provides room for coaching and behavioral change among the employees.
  2. Targeted staff development- by identifying the employee developmental opportunity the management establishes a program to improve on the weakness of their workers. For instance, if a given group of workers have integrity issues they ought to be taken for training on the issue of concern for behavior change, this ultimately roots out aspects that would be dragging back the performance of an organization.
  3. Encouraging the staff- the individuals who are identified to have exemplary performance ought to be recognize through rewards. This motivates them and also challenges others to work harder in order to achieve too. Even though it worth noting that best practice is focusing more on the successes while correcting gently the mistake done.
  4. Under performers identified and eliminated-in the cases where the underperformance is persistent from some individual, the call for them to be eliminated is inevitable for the sake of organizational development. For instance, if the marketers are not expanding the market niche of a product, it calls for a transition to a different group of marketers.
  5. Keeping history of individual employee performance- this helps keep the records on development journey of individuals therefore identifying the missing aspects that the worker needs to be all rounded.
  6. Room for employee growth and therefore organizational growth-effective performance management leads to individual reaching their potential. Through realizing the potential of their workers, organizations have been in a position to realize their mission.


Performance Compensation process and Incentive pay Practice

Compensation is the process of rewarding or paying the workers for the contribution they make to an organization. This includes the basic pay, benefits such as insurance and retirement. It can be monetary or non-monetary. Compensation is cogent for any succes as it strategically encourages the employees to put forth the best efforts in a manner that helps the organization to achieve its set goal through production of goods and services. Compensation makes the workers to be motivated and to engage in beneficial behaviors. Individual compensation is based on salient accomplishment and individual contribution this  leads to behavioral change, increased intensity in terms of efforts they put in their duties and also the persistence with which they do their tasks.

In the case of merit based approach, individual incentive is the best form of compensation since this is based on the personal performance. The common individual incentives include the Merit pay increase that is the increase in basic pay pegged on one’s performance; Commission is a particular compensation associated with specific sales. For instance, for any sale done, a percentage of total amount sold is paid to the sales person; finally, is the piece rate incentive, where employees are paid the am amount depending on their output. Employees also get merit bonus perhaps at the end of the year when a remarkable improvement is seen, this type of compensation is not planned for.

The following are the reasons for giving individual incentives.

  1. Improved Morale-with individual recognition an employee esteem is improved as they remain motivated to do their tasks. When an employee is motivated personally, he/she will work to their optimal despite the peer influence from colleagues. Employees get the sense of worth and feel part and parcel of the organizational success. This improves the overall working environment (Churchill 2).
  2. Better job performance- by giving individual incentives, they become loyal to the organization and even yearn to do more.
  3. Healthier employees and therefore better performance-when health cove incentives are given to employees it means more working days than sick offs. Healthier workers are likely to reach their potential and so have the best task performance. For instance, when employees are covered to see physicians or dentists regularly, this ensures that various ailments are kept at bay.
  4. Healthy competition- some incentives are compelling enough to make other employees yearn to get them just as their colleagues have. This leads to competition that make employees work smart and harder.
  5. Retention of employees- incentives like bonuses make worthwhile for workers to remain in an organization. Employees feel much appreciated for their hard work hence reflecting well for their supervisors and the organization at large.
  6. Improved communication among employees (Churchill 1) incentives spark improved working relationships as individuals are driven by the desire to achieve more. This is probable through effective communication among the colleagues.

Work Cited


Churchil. Benefits of Employee incentive programs. 2009<>