The idea of a merit rating is alluring. The sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people to do their best, for their own good.
The effect is exactly the opposite of what the words promise.
Motivation - nonsense. All that people need to know is why their work is important.
Top management should publish a resolution that no one will lose his job for contribution to quality and productivity.