Modern Performance appraisal methods 4

Introduction

Even though we have all been subjected to performance reviews in every business in which we have ever worked, there is still the question of whether or not all of the effort that is put into evaluations actually yields accurate or useful results. In this series of blogs, I have evaluated contemporary methods of performance evaluation in order to shed light onto the obstacles and opportunities that are presented by each approach.   

The ability to instill in employees a sense of critical responsibility and a desire to contribute to organizational goals is the manager's responsibility. Employees are most valuable resource when setting and achieving forward-looking goals. In order to succeed with this resource, the manager must be able to do the following: first, be able to instill in employees a sense of critical responsibility and a desire to contribute to organizational goals; second, have the option to instill in laborers a desire to contribute to organizational goals; and third, they must help their subordinates improve their skills so they may lead others. They must coordinate and guide the efforts of the specialists toward the attainment of the goal.(Ogochukwu, et al., 2022).Management by Objective effectively address these.

Management by Objectives

Three management phases make up the MBO process: planning, monitoring, and assessment. The MBO process begins with planning what we hope to accomplish during this phase. Everyone should be aware of the goals they are working toward. Staff employees shouldn't have goals forced upon them; instead, management should choose the goals together. They obtain widespread support as a consequence, which makes achieving their objectives easy and rapid.(Jayadatta et al., 2023)

The second step of putting this strategy into action begins as soon as their expectations for the project are made known.

Once the job has been completed, the results of the personnel may be assessed. This managerial approach connects the managers' performance to the goals of their sections or units, and via them, to the overarching corporate objectives of the companies.(Tochukwu, 2019)

Setting productivity and satisfying targets provides the chance to assess job performance. We may examine the influence of unique circumstances on an employee's performance following a thorough review. These elements' findings will operate as a reference for other performance evaluation procedures.(Islami et al., 2018)

According Armstrong (2009), the MBO's objectives must be SMART (Specific, Measurable, Achievable, Relevant, Time-determined).With the addition of the letters E(Exciting) and R(recorded), SMART can sometimes be extended to SMARTER (Kralev, 2011).

Advantages of Applying MBO

1. It directs workers toward the intended outcomes.(Koontz et al., 1976)
2. It enables managers and employees to communicate about goals and plans of action.(Koontz et al., 1976)
3. There is a rise in job satisfaction.(Koontz et al., 1976)
4. Giving each person the freedom to choose how to achieve their goals and supporting their progress.(Koontz et al., 1976)
5. Both number and quality of performance appear to be becoming better.(Koontz et al., 1976)
6. It offers a vertical connection between higher-level and lower-level objectives.(Koontz et al., 1976)
7. It works well in management roles.(Dagar, 2014)

Challenges of applying MBO.

1. Differences in how goals are interpreted,(Shaout et al., 2014)
2.  Potential lack of integrity, quality.(Shaout et al., 2014) 
3. Objectives are hard for appraise to agree upon.(Shaout et al., 2014) 
4. Not relevant to all jobs, merit pay distribution may lead to the formulation of unimportant short-term goals rather than significant long-term goals, etc. (Dagar, 2014)

Conclusion

MBO emphasizes the importance of output in proportion to input. As a result, it emphasizes efficiency. A comparison of the outputs and the inputs is necessary to determine if management should pursue the goals. The goals are not set in stone since they may always be evaluated and changed if they don't seem to be working. 

Each manager must define their responsibilities in their various divisions in accordance with corporate strategy if MBO is to be successful. All other employees must comprehend this if the goals are to be achieved within the allotted period.

Armstrong, M., 2009. Armstrong’s handbook of human resource management practice 11th edition.

Dagar, A., 2014. Review of performance appraisal techniques. International Research Journal of Commerce Arts and Science, 5(10), pp.16-23.

Islam, M.A.R.H. and Sarker, R.I.N.K., 2020. The effect of management by objectives on performance appraisal and employee satisfaction in commercial banks. Journal of Social and Development Sciences, 32(6), pp.4-23.

Jayadatta, S. and Sheeri, G., 2023. A study on Recent Emerging Trends in Commerce and Management with reference to Management by Objectives–A Theoretical Assimilation. Srusti Management Review, 16(1), pp.48-53.

Shaout, A. and Yousif, M.K., 2014. Performance evaluation–Methods and techniques survey. International Journal of Computer and Information Technology, 3(5), pp.966-979.

TOCHUKWU, K., MANAGEMENT BY OBJECTIVE AS AN EFFECTIVE TOOL FOR ENHANCING ORGANIZATIONAL PRODUCTIVITY.

Koontz, H., O'donnell, C. and Weihrich, H., 1980. Management. McGraw-Hill Companies.

Kralev, T., 2011. Management by objectives: Management philosophy for prosperous tourism organizations. UTMS Journal of Economics, 2(1), pp.83-87.

Kreitner, R., 2009. Principles of Management, 11th. Sorth—Western, a part of Cengage Learning.

Ogochukwu, O.E., Amah, E. and Okocha, B.F., 2022. Management by Objective and Organizational Productivity: A Literature Review. South Asian Res J Bus Manag, 4(3), pp.99-113.