Normalize Rating | Meaning and Definition

What is a normalized rating?

Normalization rating is a measure that balances the variability and differentiation in the assessment and achievement pattern. It is used to ensure that all employees are given an equitable opportunity to learn and assess their progress and achievement by the managers. A normalizing rating can help reduce errors in value-added feedback and make certain comparisons when used properly.

 

Benefits of normalizing rating

There are several benefits to normalizing employee ratings in performance reviews.

  •   It creates a level playing field for employees since everyone is measured against the same standard.
  •   It eliminates the biases that can occur when rating employees who are seen as “likable”, “easy to work with”, or “strong performers.”
  •   It ensures that employees are not rated too harshly or too leniently since this can distort their actual performance levels.
  •   It allows for accurate comparisons of employee performance over time.
  •   It provides a more accurate picture of employee strengths and weaknesses, which can help managers to develop their team members more effectively.

Implementing normalized rating in employee performance

To implement a normalization rating in employee performance, you will need first to calculate the average rating for each employee. This can be done by adding up all ratings and dividing them by the number of ratings.

Next, you will need to subtract the average rating from each rating. This will create a new score that ranges from -1 to 1. Finally, you will want to divide each score by the average rating to get a normalized score between 0 and 1.