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Describe the management-by-objectives method of performance appraisal.
On Jun 24, 2024
Answers will vary. A popular method of appraising performance that focuses on outcomes is a goal-based or management-by-objectives (MBO) system. Management by objectives is the most popular term used for this approach, although many companies develop their own label to describe the system used in their organization. In an MBO system, a subordinate meets with his or her manager, and together they set goals for the subordinate for a coming period of time, often 1 year. These goals are usually quantifiable, objective, and almost always written down. During the year, the manager and the subordinate meet periodically to review the subordinate's performance relative to attaining the goals. At the end of the year, a more formal meeting is scheduled. During that meeting, the actual degree of goal attainment is assessed. The degree of goal attainment then becomes the individual's performance appraisal. If an individual has attained all the goals that he or she set for himself or herself, then employee performance is deemed to be very good. On the other hand, if not all goals were accomplished and the individual is directly responsible for that performance deficiency, then his or her performance is judged to be less than adequate or acceptable.