high performance from their employees in order to survive in a highly competitive environment. Many firms use some form of results-oriented planning control systems. Management by Objectives (MBO)
The term “management by objectives” was
first popularized by Peter Drucker in his 1954 book “The Practice of Management”
Is a process of agreeing upon objectives
within an organization so that management and employees agree to the objectives and understand what they are in the organization PERFORMANCE APPRAISAL
plays a key role in reward systems. It is
the process of evaluating the performance of employees, sharing that information with them, and searching for ways to improve their performance appraisal is necessary in order to;
1. allocate resources in a dynamic environment,
2. motivate and reward employees,
3. give employees feedback about their work,
4. maintain fair relationship within groups,
5. coach and develop employees,
6. comply with regulations
Appraisal Philosophy
Modern appraisal philosophy emphasizes
present performance and future goals. Modern philosophy also stresses employee participation in mutually setting goals with the supervisor and knowledge of results. The hallmarks of modern appraisal philosophy are as follows;
1. Performance Orientation
2. Focus on Goals or Objectives
3. Mutual Goal Setting between Supervisor and Employee
4. Clarification of Behavioral Expectations
5. Extensive feedback Systems
Appraisal Interview
This is a session in which the
supervisor provides feedback to the employee on past performance, discusses any problems that have arisen and invites a response. Suggested Approaches for the Appraisal Interview
Appraisal interviews are most likely to be successful
when the appraiser;
* Is knowledgeable about the * Seeks and uses inputs from other
employee’s job, observers in the organization
* Has previously set measurable * Provides support, acceptance,
performance standards and praise for talks well done
* Has gathered specific evidence * Listens actively to the employee’s
frequently about performance input and reactions 360- Degree Feedback Programs
360- degree feedback is the process of
systematically gathering data on a person’s skills, abilities, and behaviors from a variety of sources- the manager, peers, subordinates, and even customers or clients. Managerial Effects
Managerial Effects Conducting performance
appraisals also has substantial impact on the appraiser. On the positive side, a formal appraisal system encourages managers to do more analytical and constructive thinking about their employees.