Glossary
Performance Rating Scale
Meaning & Definition
A performance rating scale is a system that involves the evaluation and categorization of performance of an employee in accordance with set goals, skills, and performance expectations, using various scales like outstanding, exceeds expectations, meets expectations, needs improvement, or unsatisfactory.
Importance of Performance Rating Scale
- Ensures there is an approach to evaluating the performance of employees.
- Ensures consistency in evaluating employees’ performance.
- Used in identifying high-performing employees and those who need development.
- Used in making decisions relating to promotions, rewards, and training.
Legal Compliance / Policy / Regulation
There is no statutory requirement with regard to the Performance Rating Scale. However, the rating scale should be administered consistently and fairly.
