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CMA Intermediate · Operations Management and Strategic Management · Job Evaluation, Job Allocation - Assignment

Which statement correctly distinguishes job evaluation from merit rating?

Job evaluation measures the relative worth of a job, independent of the person doing it, to build a wage structure. Merit rating measures how well an individual employee performs the job, and is used for increments, promotion and bonus decisions.

  1. AJob evaluation assesses the relative worth of the job; merit rating assesses the performance of the individual employee on the jobCorrect
  2. BJob evaluation assesses the individual employee's performance; merit rating assesses the worth of the job
  3. CBoth assess only the employee's personal traits
  4. DBoth fix the wage of the job and ignore employee performance

Explanation

Job evaluation rates the job itself, irrespective of who does it, to set basic pay differentials. Merit rating rates the employee's performance, used for increments, promotion and bonus. The second option reverses the two concepts.

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