EXPLAIN the efficiency rating procedures of the employees.

Efficiency is usually related with performance and may be computed by comparing the time taken with the standard time allotted to perform the given job/task. If the time taken by a worker on a job equals or less than the standard time, then he is rated efficient. In case he takes more time than the standard time he is rated as inefficient. Efficiency in % = (Time allowed as per standard / Time Taken) × 100 For efficiency rating of employees the following procedures may be followed: Determining standard time/performance standards: The first step is to determine the standard time taken by a worker for performing a particular job/task. The standard time can be determined by using Time & Motion study or Work study techniques. While determining the standard time for a job/task a heterogeneous group of workers is taken and contingency allowances are added for determining standard time. Measuring Actual Performance of workers: For computing efficiency rating it is necessary to develop a procedure for recording the actual performance of workers. The system developed should record the output of each worker along with the time taken by him. Computation of efficiency rating: The efficiency rating of each worker can be computed by using the above mentioned Formula.