Effective Performance Appraisal for Management

Management by objectives (formally known as MBO) is a type of performance management system that requires the manager and employee to identify employee goals as they relate to the overall business.

Employees are highly motivated through MBO because they’ve been able to actively participate in the process of setting goals, instead of simply having the goals dumped on them. Their involvement in this type of decision-making helps meet many of their higher-level needs for accomplishment, achievement, recognition, and self-worth.

For example, a sales representative's objectives may include increasing revenue by 25 percent in 12 months. The employee determines how best to achieve this goal and establishes a timeline for the tasks she needs to accomplish to increase revenue: improve sales and decrease costs. Often, MBOs track progress on a quarterly basis, which is one of the benefits of using this method. Regular feedback is an effective motivator for many employees.

Advantages:

1. The benefits of MBO are that it improves employee motivation and commitment, and ensures better communication between management and employees

2. It is more useful for managerial positions, such as executives, managers and project leaders, in which individuals have a higher degree of control and influence on an outcome that is measurable

3. Clarity of goals

4. Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person.

5. Managers can ensure that objectives of the subordinates are linked to the organization's objectives.

6. Common goal for whole organization means it is a directive principle of management.

Disadvantages:

1. Not applicable to all jobs, allocation of merit pay may result in setting short-term goals rather than important and long-term goals

Our group recommended immediate supervisor & Peer to do the PA for customer service officer :

a) Immediate Supervisor

Immediate Supervisor can...